At the start of August, the Scottish Government (the Government) formed a Fair Work Oversight Group (the Oversight Group) to advise on its fair work agenda. In this article we look at the steps the Government has taken so far on fair work, including the Fair Work Action Plan, in more detail.

What is fair work?

The Fair Work Convention, which is an independent advisory body to the Government, defines fair work as “work that offers all individuals an effective voice, opportunity, security, fulfilment and respect”. They note that fair work “balances the rights and responsibilities of employers and workers” and “generates benefits for individuals, organisations and society”.

According to the Government, fair work is “vital in tackling poverty”. Its stated aim in implementing the fair work policy is to make workplaces fairer and more inclusive.

The Government is progressing a number of initiatives in relation to fair work, including the Fair Work First (FWF) guidance. The stated purpose of the FWF guidance is to assist those who award and receive public sector grants, funding and public contracts, have sponsorship arrangements with the Government and / or deliver contracts. Other initiatives included a statement in 2020 on “Delivering Fair Work during the coronavirus pandemic”, a “Fair Work employer support tool” in 2021 and the 2018 “Fair Work Agreement”. 

The Oversight Group

The Oversight Group has been set up to advise on the wider fair work agenda and to help the Government move forward with the Fair Work Action Plan. Neil Gray MSP (Cabinet Secretary for Wellbeing Economy, Fair Work and Energy) will chair the Oversight Group. Members include representatives of the Scottish Chambers of Commerce, Scottish Trades Union Congress and the Equality and Human Rights Commission, as well as other leads from business, trade unions, equality groups and academia. 

The Government has emphasised the appointment of the Oversight Group as “underlining the broad commitment to the Scottish Government’s ambitions to encourage payment of the real Living Wage, give employees a voice in the workplace and provide equal opportunity”. 

The Fair Work Action Plan

The “refreshed” Fair Work Action Plan (the Plan) was published in December 2022. It is part of the Government’s aim for Scotland to be a leading Fair Work Nation by 2025. Together with the National Strategy for Economic Transformation, the Plan outlines the Government’s proposals to promote fairer and more inclusive workplaces by:

• promoting payment of the real Living Wage (which is not to be confused with the UK government’s National Living Wage) and other practices such as hours security through accreditation schemes for employees;
• removing barriers for traditionally underrepresented groups;
• making compliance with fair work practices (e.g. the real Living Wage) a condition for awards of public sector grants and contracts;
• targeting traditionally lower paying sectors to encourage improved terms and conditions;
• providing support and guidance to employers through the fair work employer support tool; and
• promoting the benefits of trade unions and collective bargaining. 

The Plan includes a measurement framework which the Government will use to monitor progress. Some of the indicators against which the Government will measure success include:

• whether an Equal Pay Audit has been carried out;
• percentages of employees reporting to be members of trade unions or are affected by collective agreements;
• publishing a communications strategy which highlights and promotes the benefits of fair work and a diverse workplace to employers;
• developing guidance on good practice to highlight successful application of positive action measures as per the Equality Act 2010; 
• monitoring the percentage of workers without access to flexible working options; and
• reviewing reports from Skills Development Scotland and the Scottish Funding Council. 

The Plan highlights the Government’s focus on the real Living Wage and notes a substantial increase in the number of accredited Scottish real Living Wage employers.

The Government also launched “A Fairer Scotland for All: An Anti-Racist Employment Strategy” in December 2022 to accompany the Plan, with the aim of helping employers close the ethnicity pay gap.

The Scottish Business Pledge

In addition, the Government has refreshed the Scottish Business Pledge (the Pledge), which is stated to be a “values-led partnership between Government and business” with an emphasis on “boosting productivity and competitiveness through fairness, equality and sustainable employment”. By joining the Pledge, Scottish businesses have an opportunity to make a voluntary commitment to follow best business practice. 

The mandatory commitments include pledging to pay the real Living Wage, not using inappropriate zero-hours contracts and taking action to close the gender pay gap. Businesses must then commit to five further pledges, choosing from the following:

• environmental impact;
• investing in a skilled and diverse workforce;
• workforce engagement;
• innovation;
• internationalisation;
• support your community; and
• prompt payment. 

The Oversight Group will share best practice on fair work issues and will submit a fair work progress report to the Scottish Parliament in early 2024.

If you have questions on any of the points raised in this article, please do not hesitate to get in touch with a member of the Dentons team.