Fair Work First (FWF) - guidance for funding applicants
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
As a result, we are introducing two elements of the Fair Work First policy for all new grant offers issued from 1st July 2023. These criteria are: for employees to receive at least the real Living Wage; and for workers to be provided with appropriate channels for effective voice.
Criteria
Real Living Wage and Effective Voice criteria will apply to all posts funded by new NatureScot grants issued from 1st July 2023, including agency and seasonal workers.
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. We will require all posts supported by our grant funding to receive at least the real Living Wage (including those aged 16 and over, and apprentices). If your organisation is an accredited real Living Wage employer you already meet this criteria for employees aged 18 and over, further evidence will be required for under 18 and apprentices. Beyond the posts that are directly supported by our grant funds we actively encourage the payment of at least the real Living Wage to all staff employed by applicants receiving grant support from NatureScot. Successful applicants will need to include evidence of how they meet the real Living Wage criteria prior to a Funding Offer being issued. A Fair Work First employer declaration form is available on our website.
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. As part of providing an effective voice with NatureScot grants,
- All organisations with a workforce must be able to demonstrate, before they can access a grant, that all workers employed within that organisation have access to effective voice channel(s), including agency workers.
- Voice exists at both collective and individual levels and organisations will be expected to show how genuine and effective voice is evidenced.
If your organisation already recognises one or more trade unions it should be straightforward for this criteria to be met and evidence of this should be included in the Fair Work First employer declaration form available on our website.
How real Living Wage and Effective Voice apply to different roles in grant funded projects
There are several possible roles that organisations may play within a project that our grant funding supports. The table below will help you see how the criteria apply to these different roles and help you prepare your application, including its budget and procurement process. We envisage very limited circumstances where an exception to these conditions can be made and any exceptions must be agreed by NatureScot.
With a project an organisation could be the applicant / grant holder, be an organisation acting as a project partner and benefiting from grant funding, or an organisation working as a contractor for the project. The actions required are dependent on the size of the organisation, and the role being played within the project.
For example:
- Applicant is an organisation with 30 employees – all staff contributing to the project must receive at least the real Living Wage (rLW) and be provided with channel for Effective Voice (EV);
- A project partner is a sole trader – staff costs should be at least the RLW, but the partner is exempt from having to evidence EV;
- A contractor* to the project is a very small organisation with only 2 employees – the successful tenderer must pay at least the rLW for staff working on the project and provide limited evidence of an EV.
*When seeking tenders from multiple contractors, tenders must stipulate that tenderers are expected to pay the rLW as a minimum for staff working on the project.
| Who | Role | real Living Wage(1) | Effective voice |
|---|---|---|---|
| Organisations with 21 or more employees | Applicant / Grant holder | Yes | Yes |
| Organisations with 21 or more employees | Partner of applicant | Yes | Yes |
| Organisations with 21 or more employees | Contracted expert or consultant | Yes Tenders to be based on RLW as a minimum for all staff on project | Yes |
Organisation with fewer than 21 employees (2) This includes organisations with only 1 or 2 employees | Applicant / Grant holder | Yes | Yes (2) |
Organisation with fewer than 21 employees (2) This includes organisations with only 1 or 2 employees | Partner of applicant | Yes | Yes (2) |
Organisation with fewer than 21 employees (2) This includes organisations with only 1 or 2 employees | Contracted expert or consultant | Yes Tenders to be based on RLW as a minimum for all staff on project | Yes (2) |
Sole Trader, Private individual e.g. Crofter, single farm owner | Applicant / Grant holder | Yes | n/a |
Sole Trader, Private individual e.g. Crofter, single farm owner | Partner of applicant | Yes | n/a |
Sole Trader, Private individual e.g. Crofter, single farm owner | Contracted expert or consultant | Yes Tenders to be based on RLW as a minimum | n/a
|
(1) In exceptional circumstances, if an applicant cannot afford the rLW there is potential to increase the grant to meet the rLW.
(2) The principle of providing an effective voice is encouraged in all organisations receiving grant funding from NatureScot. However this does not have to be as fully evidenced by organisations with fewer than 21 workers. This aligns with conditions for application for statutory union recognition and is therefore considered as a benchmark in terms of the size of workforce where collective representation would be expected. Organisations with fewer than 21 workers must show evidence of providing genuine and effective workers’ voice at the individual level (see Table 2 of evidence required).
Evidence required for Fair Work First
Grant recipients should provide the most appropriate evidence for their organisation from the tables below. They may need to provide more than one source of evidence depending on the make-up of their workforce (e.g. grant recipients who employ fewer than 21 staff are not required to provide evidence of ‘collective’ channels for workers voice – Table 2) and whether any contractors/agency workers are employed to directly support delivery of the funded project or activity.
| Grant value | Evidence Directly employed staff | Evidence Apprentices | Evidence 16-17 year old workers | Evidence Contracted & agency staff |
|---|---|---|---|---|
<£100k (cumulative)
|
|
|
|
|
≥£100k (cumulative)
|
|
|
|
|
Real Living Wage Employer Accreditation
Real Living Wage Employer Accreditation applies to only:
- directly employed staff aged 18 years of age and over
- those who are not apprentices
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. |
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. |
| 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 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. We expect at least one channel at both levels (individual and collective) to be provided as evidence for organisations with 21 or more workers. For organisations with fewer than 21 workers, then evidence of at least one individual level of effective voice should be provided with your Fair Work First employer declaration form.
