Fair Work First

The Scottish Government does not have the authority to create, amend or repeal employment law. This means employers can decide if they use Fair Work practices in their business or not.

To promote and encourage Fair Work practices, the Scottish Government introduced the Fair Work First policy.

The Fair Work First policy requires employers to meet a minimum standard of practice to access public sector grants.

Criteria

Employers in Scotland who apply for and get public sector grant funding should meet the following Fair Work First criteria.

Mandatory criteria

You must:

  • pay at least the real Living Wage
  • provide channels for workers to use their voices – such as trade union recognition

Desirable criteria 

You should also:

  • avoid zero hours contracts
  • offer flexible working arrangements for all workers from day one of employment
  • oppose the use of ‘fire and rehire’ – this means dismissing workers and rehiring them on different terms, such as lower pay
  • address workplace inequalities – including pay and employment gaps for marginalised workers

Why Fair Work First is important

Fair Work First is a key aspect of the Scottish Government’s Fair Work plan.

Employers who meet the minimum Fair Work First standards will create better workplaces for everyone. This may inspire them to continue the Fair Work journey and improve working conditions.

Over £2.6 billion worth of public sector grants were awarded under Fair Work First during 2023 and 2024. This means that more businesses in Scotland are adopting Fair Work practices - for example, paying workers the real Living Wage.

Read the most recent Fair Work First report on gov.scot.

How might your business benefit

Research shows that Fair Work practices bring many benefits to employers and workers

The Warwick Institute for Employment Research found Fair Work positively affects several areas of businesses, including:

  • productivity
  • health, safety and wellbeing
  • work-life balance
  • worker satisfaction
  • inclusion
  • diversity

Find out about the benefits of Fair Work in the Fair Work action plan for 2025 on gov.scot.

Employer resources for Fair Work First

Find examples of good practice on how to adopt the Fair Work First criteria on gov.scot.

Read about Fair Work First requirements in procurement on gov.scot.

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