Outcomes Framework and Assurance Model

Fair Work First is the Scottish Government’s 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. This approach is to support employers who adopt fair working practices, specifically:

• Payment of at least the real Living Wage.
• Providing 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.
• Offering flexible and family friendly working practices for all workers from day one of employment.
• Opposing the use of fire and rehire practices.

Since July 2023, the following Fair Work First criteria are considered mandatory:

• Payment of at least the real Living Wage.
• Providing appropriate channels for effective workers’ voice.

At this stage other criteria will continue to be encouraged.

Only in limited circumstances may the grant maker / funder consider making an exception to the mandatory criteria.

In Ministerial letters of guidance to SFC, the Scottish Government has said it looks to SFC to continue its progress in adopting Fair Work First, both as an employer and through attaching Fair Work First criteria to its grants, procurements and other funding. SFC has several ways it monitors how the institutions it funds align with the Fair Work first criteria.

The SFC Outcome Agreement guidance for 2022-23 called for institutions to advance and promote Fair Work practices as employers, and for them to outline what they are doing in practice to deliver Fair Work for their employees. The Outcome Agreements for 2022-23 were published in late July 2023, and content on fair work practices are included within those.

Moving forward, given that institutions are already asked to provide information on fair work within their annual report and accounts, we have taken the decision to monitor institutions’ compliance through this route to avoid unnecessary duplication and burden. Our accounts direction guidance for colleges and universities has therefore been strengthened and institutions will be asked to provide a more fulsome commentary outlining the Fair Work practices that have been developed in agreement with the institution’s workforce and the progress the institution has made in their implementation. Institutions publish their financial statements on their websites, thus making this information available on an annual basis.

SFC will review these commentaries/statements annually and report to Scottish Government regarding the sector’s adherence to the Fair Work First criteria. SFC will also provide feedback to institutions on their disclosures through our regular engagement.

Given the mandatory nature of the criterion to pay at least the Real Living Wage, we strongly encourage all institutions to become accredited Real Living Wage employers. A register of accredited employers is available online.

Good practice on how institutions can adhere to the Fair Work First criteria is included on guidance on the Scottish Government website.