Fair Work First - guidance for grantees

Organisations awarded funding through the Self Management Fund are required to comply with Scottish Government's Fair Work First policy.

Fair Work First is the Scottish Government’s flagship policy for driving high quality and fair work across the labour market in Scotland. This is increasingly being implemented by applying fair work criteria to grants, other funding and contracts being awarded across the public sector, where it is relevant to do so. Through this approach the Scottish Government is asking employers to adopt fair working practices, specifically:

appropriate channels for effective 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;
payment of the Real Living Wage;
offer flexible and family friendly working practices for all workers from day one of employment; and
oppose the use of fire and rehire practice

Paying at least the Real Living Wage and providing appropriate channels for effective workers’ voice are mandatory while the other criteria are encouraged. Only in limited circumstances may the ALLIANCE consider making an exception to the mandatory criteria.

As a result, we are introducing checks for these two elements of the Fair Work First policy for all Self Management Funded projects. These checks are: that employees to receive at least the Real Living Wage; and that workers are provided with appropriate channels for effective voice on an individual and collective level.

Funded organisations should provide the most appropriate evidence for their organisation from the list below. You may need to provide more than one source of evidence depending on the make-up of your workforce and whether contractors/agency workers are employed to directly support delivery of the funded project.

Evidence of payment of Real Living Wage

	Evidence
Grant Value	Directly employed staff	Apprentices	16-17 year old workers	Contracted and agency staff
Below £100k (cumulative)	Living Wage Accreditation; or Self-declaration	Self-declaration	Self-declaration	Self-declaration
Equal to or above £100k (cumulative)	Living Wage Accreditation; or Anonymised payroll; or Accountant certificate	Anonymised payroll; or Accountant certificate	Anonymised payroll; or Accountant certificate	Anonymised copy of contract for relevant contractors/ agency workers

This table explains the required evidence for payment of Real Living Wage, according to the value of your grant.

Evidence of effective Employee Voice

Although it is encouraged in all organisations, the collective element of voice does not have to be evidenced by organisations with fewer than 21 workers.

Voice Channel	Level	Evidence
Line Management Relationship (i.e. effective 2-way dialogue through 1:1 relationship).	Individual	Written confirmation from trade union/worker representative(s) that there is opportunity for regular 1:1 open and two-way dialogue between line managers and their direct reports; that this dialogue exists separately to standard performance review processes; and that worker-manager working relationships are effective. This could also be supported by evidence of regular engagement survey that supports this; and/or in Organisation’s KPI’s.
Staff /Engagement Surveys	Individual	Written confirmation from both management and trade union/worker representative(s) that an appropriate survey is regularly undertaken and can demonstrate that feedback is provided to workforce and actions created and implemented to address this.
Suggestions Schemes	Individual	Written confirmation from both management and trade union/worker representatives that a scheme exists and examples provided of improvements made as a result.
Intranet/Online Platforms	Individual	Written confirmation from both management and trade union/worker representatives that an internal platform exists that allows worker contribution to strategic discussion and examples provided where input is acknowledged and acted upon.
Staff Forums / Networks	Collective	Written confirmation from both management and trade union/worker representatives that network(s) and/or a forum exists, meets regularly, supports open dialogue and is action focussed. Examples of actions progressed should be provided.
Trade Union Recognition/ Collective Bargaining	Collective	Copy of Recognition Agreement is provided.
Access is provided to trade unions / Pro union Membership attitude is demonstrated	Collective	1) Trade union(s) confirm that access is granted to recruit and organise members. And/or: 2) Workers are aware that the employer is happy for them to join a union of their choice (e.g through induction materials, clause in contract).
Joint Consultative Committee/s (JCC)	Collective	Written confirmation from both management and and trade union/worker representative(s) that JCC/s exist and examples of issues covered.
European Works Councils (EWCs)	Collective	Papers from EWC demonstrating membership and active participation.

This table explains how the different channels of voice can be evidenced. At least one channel at both levels (individual and collective) should be provided as evidence for organisations with 21 or more workers. For organisations with fewer than 21 workers, evidence of at least one individual level of effective voice should be provided with your employer declaration form.

Fair Work First – guidance for grantees