Scotland

Meet Fair Work First requirements

How to meet the mandatory and encouraged Fair Work First criteria when applying for Scottish public sector grants or contracts.

Guide summary

Pay at least the real Living Wage (£13.45/hour from October 2025) and provide effective workers’ voice channels to qualify for Scottish public sector grants. These two criteria are mandatory from 1 July 2023. Not meeting them can disqualify your application.

  • Pay at least £13.45/hour (real Living Wage) from October 2025
  • Provide effective workers’ voice channels (e.g. trade union, staff forum)
  • Review zero-hours contracts – avoid inappropriate use or exclusivity
  • Take action on gender pay gaps if applicable
  • Invest in workforce development and skills
  • Offer flexible and family-friendly working practices
  • Do not use fire and rehire practices
  • Gather evidence of compliance for your grant application
  • Living Wage accreditation satisfies the wage criterion automatically
  • Non-compliance may lead to application rejection or funding withdrawal
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If your organisation applies for Scottish public sector grants, you must meet the Fair Work First criteria. Since 1 July 2023, two criteria are mandatory — failure to meet them can disqualify your grant application.

  1. 1

    Check whether your grant or contract requires Fair Work First compliance — all Scottish Government grants do

  2. 2

    Confirm you pay at least the real Living Wage (currently £13.45/hour UK rate) to all workers delivering the funded activity

  3. 3

    Establish effective workers' voice channels — this could be trade union recognition, staff forums, or regular employee engagement

  4. 4

    Review your zero-hours contracts — avoid inappropriate use or exclusivity clauses

  5. 5

    Consider the encouraged criteria: gender pay gap action, workforce development, flexible working, and no fire-and-rehire

  6. 6

    Gather evidence of compliance — you may need to demonstrate this in your grant application

  7. 7

    If you are a Living Wage accredited employer, this satisfies the wage criterion automatically

What counts as workers' voice

You must provide appropriate channels for workers to have their views heard. Acceptable approaches include:

  • Trade union recognition: formal recognition agreement with a relevant union
  • Staff forums or councils: regular meetings with elected employee representatives
  • Employee surveys: systematic gathering and acting on workforce views
  • Open door policies: documented processes for raising concerns (smaller organisations)

What happens if you do not comply

Grant bodies assess compliance at application stage. Non-compliance with the two mandatory criteria (real Living Wage and workers' voice) may result in your application being rejected or funding being withdrawn.

Fair Work First guidance