Fair Work First
Fair Work First (FWF) is the Scottish Government's flagship policy for driving high quality and fair work, and workforce diversity across the labour market in Scotland by applying fair work criteria to grants, other funding and public contracts being awarded by and across the public sector, where it is relevant to do so.
Through this approach the Scottish Government is supporting employers who adopt fair working practices, specifically:
- payment of at least the real Living Wage
- provide appropriate channels for effective workers' voice, such as trade union recognition
- investment in workforce development
- no inappropriate use of zero hours contracts
- action to tackle the gender pay gap and create a more diverse and inclusive workplace
- offer flexible and family friendly working practices for all workers from day one of employment
- oppose the use of fire and rehire practice
The Fair Work First criteria seek to address challenges in Scotland's labour market, to make a real difference to people and their communities, business and other organisations and the economy.
Scottish Ministers announced on 6 December 2022 that organisations applying for public sector grants awarded on or after 1 July 2023 will need to pay at least the real Living Wage and provide appropriate channels for effective workers’ voice.
It was agreed that the application of Fair Work conditionality would be implemented from 1 April 2024 to Agricultural grants that meet the criteria of the overall SG Fair Work Policy.
As a result, we are introducing three elements of the Fair Work First policy to AECS applications which are approved for funding from the 2025 application round onwards.
These criteria are:
- for employees to receive at least the real Living Wage
- for workers to be provided with appropriate channels for effective voice
- for confirmation that any sub-contractors who deliver the project supported by AECS funding are also paying the real Living Wage
As part of the contract offer award under AECS, businesses will be required to confirm when accepting their contract offer that, if they have employees, they pay at least the real Living Wage to all staff aged 16 and over (including apprentices) who are directly employed by their business, and that all staff have access to effective workers’ voice channel(s). They will also confirm that any sub-contractors they engage to complete the work funded by AECS will also pay the real Living Wage.
Compliance with Fair Work First
The real Living wage is calculated annually and announced in autumn. Employers then have 6 months, until 1 May of the following year, to implement it.
The ‘Effective Voice’ requires employers to recognise the importance of collective bargaining and social dialogue to give an effective voice to their employees, improving terms and conditions, worker wellbeing and developing progressive and fair work places.
Businesses who wish to apply for AECS should refer to the Scottish Government Fair Work First Guidance to ensure they can meet the Fair Work First requirements.
Successful Applicants must retain all the relevant evidence as detailed in guidance (updating as necessary) that confirms they either meet the FWF guidance eligibility or provides the business with a limited exception from the FWF guidance eligibility. Noting that there is greater verification required where the cumulative funding award for that business is more than £100 000 in any financial year from RPID over the course of your AECs contract (excluding BPS and LFASS payments received by the applicant business).
Successful applicants will declare that they meet or will meet FWF requirements and can provide evidence to that effect if required to (at any point during the life of the AECS contract) by signing and agreeing the contract offer.
Exceptions
In limited circumstances, SGRPID may consider allowing an exception to these conditions where a business cannot afford to pay the real Living Wage and/or provide employees with access to Effective Voice channels.
Businesses who cannot meet either or both requirements must read the limited exceptions guidance, write to SGRPID to request an exception before submitting an AECS application and complete part A of the exception form.