Sustainable Procurement Tools

ANNEX B – Fair Work First: definitions, intended benefits, what good looks like and relevant sectors

The extracts in the tables below are relevant to a variety of different procurements. They are not definitive and are intended as a guide only. A public body should tailor Fair Work First to the individual requirement.

Payment of at least the real Living Wage

Definition

Intended benefit/outcomes

Examples of what good looks like/bidder response

Example sectors

The Scottish Government promotes payment of the real Living Wage as the minimum rate for everyone in paid work; this is not the same as the statutory National Minimum Wage and National Living Wage that are set by the UK Government.

The real Living Wage is a voluntary hourly pay rate based on what families need for an acceptable living standard in the UK. The rate is calculated by the Resolution Foundation and overseen by the independent Living Wage Commission; it is reviewed annually to reflect the cost of living, and the rate is announced each November.

Building on the strength of the real Living Wage movement, the Scottish Living Hours Accreditation Scheme recognises that in addition to payment of the real Living Wage, the number and frequency work hours are critical to tackling in-work poverty. Businesses looking for certification must meet three criteria for accreditation; payment of the real Living Wage, providing a contract reflecting accurate hours worked and a guaranteed minimum of 16 hours a week (unless the worker requests otherwise) and ensure at least 4 weeks’ notice of shifts and guaranteed payment if shifts are cancelled within this period.

Real Living Wage rates, up-to-date information and guidance can be found at: Living Wage Foundation website.

Enabling people to earn a decent income will help them to have a decent standard of living and is the best way of tackling poverty. Low wages are a prime cause of in-work poverty, along with the increased use of zero-hours contracts and other precarious practices.

Paying workers the real Living Wage is good for businesses and for society, as employers who pay the real Living Wage may see an improvement in their reputation as well as increased motivation and retention rates for their employees.

Research from the Living Wage Foundation shows over 90% of Living Wage Businesses have benefited since accrediting. Over 80% of their respondents said it has improved the reputation of their organisation and over 75% said it has increased motivation and retention rates of employees.

Payment of at least the real Living Wage can make a material difference to workers and their families, particularly during the cost-of-living crisis by enabling them to access greater opportunities, with less need for worry about affordability. This is especially so for women who make up the majority of workers earning below the real Living Wage. It can also contribute to narrowing the gender, disability and ethnicity pay gaps in the labour market.

  • gained or working towards gaining Living Wage Accreditation, Living Hours Accreditation or a Recognised Service Provider.
  • have an agreed pay structure which means the whole workforce is paid at least the real Living Wage.
  • apply the pay rates collectively bargained between the relevant employer and trade union negotiating body, at or above the real Living Wage.
  • part of a local partnership working towards Living Wage Places recognition.
  • actively reviewing the pay structures and developing an incremental plan for paying all workers at least the real Living Wage.
  • paying workers for travel time within working time.
  • supporting workers by providing more than their take home pay e.g. by covering expenses for uniforms, training courses, visas.
  • target pension uptake amongst lower paid workers and help people to access good financial support.
  • provide a non-pay benefit package that helps to reduce the cost of living and make sure it is widely communicated and accessible not solely via IT.
  • offer sick pay, maternity/paternity pay as an integral part of employment contracts.

 

  • care services
  • catering
  • construction/works
  • facilities management services (maintenance, repair & cleaning)
  • health services
  • hospitality

 

 

Provide appropriate channels for effective workers’ voice such as trade union recognition (including health and safety considerations)

Definition

Intended benefit/outcomes

Examples of what good looks like/bidder response

Example sectors

Effective voice is much more than having a communication channel available within an organisation. It requires a safe environment where dialogue and challenge are central to the organisational culture and are dealt with constructively; and where worker views are sought out, listened to and acted upon, and can make a difference.

Effective voice requires workers, their representatives and employers to work in partnership to make sure the right decisions are made to ensure workers are treated fairly and equitably. The co-determination of working practices is key to delivering all of the dimensions of Fair Work effectively.

Health and safety conditions will be particularly relevant in contracts where there are workers delivering goods, works or services.

For unionised workplaces, the relevant legislation is The Safety Representatives and Safety Committees Regulations 1977. For non-unionised workplaces, the same duties are laid down in the Health and Safety (Consultation with Employees) Regulations 1996. 

Section 4A of The Safety Representatives and Safety Committees Regulations 1977 outlines what employers must consult about with their employees/ representatives.

Consulting employees on health and safety: A brief guide to the law (hse.gov.uk)

Further information on Effective Voice is available in Fair Work First guidance.

Effective voice channels potentially allow for individuals to raise and address concerns of the workplace which relate to their rights. A wide range of human rights are relevant in the workplace, including the right to just and favourable conditions of work, fair wages and a safe and healthy working environment. International human rights treaties and the International Labour Organisation also recognise the right of workers to join a trade union and the right to strike. The UK is obliged by international law to give proper effect to these rights. Supporting effective voice channels increasingly helps to ensure these rights are upheld by fostering environments in which concerns can be raised and disputes settled.

Effective voice channels improve information sharing and problem solving, encourage innovation, support cross-learning and can resolve conflict. Individual voice channels can contribute to building a positive workplace culture, connecting people to the organisation, and generating powerful insight to improve performance.

Effective voice through trade unions can lead to effective collectively bargained policy in relation to pay, working time, holiday arrangements, training, health and safety and flexible working that delivers positive outcomes for workers and for employers. While recognising that systems of collective bargaining differ widely internationally, there is evidence that countries with higher rates of trade union membership and collective bargaining coverage experience high employment rates, strong productivity growth and rate well on international indices of competitiveness and innovation.

 

 

 

Collective voice channels:

  • provide access to trade unions and make workers aware that they can join a union of their choice.
  • involve trade union/worker representatives in key governance and decision-making structures.
  • recognise trade unions for the purpose of collective bargaining and encouraging membership, where this is the workforce’s preferred route, and providing appropriate facility time for supporting regular engagement between union/s and members.
  • fully apply all relevant sectoral bargaining agreements.
  • utilise the skills and expertise of union learning representatives and resources available through Scottish Union Learning.
  • clear signposting of whistleblowing policies where appropriate.
  • A Health and Safety Committee.

Individual voice channels:

  • carry out regular surveys to understand worker views, including how well they feel effective voice is facilitated in the organisation, and are involved in agreeing and progressing improvement action.
  • appropriate collective consultation and a clear route for resolving issues at both individual and collective levels, such as through a grievance or collective disputes procedure
  • regular consultations are carried out with employees about health and safety.
  • offer regular supportive contact through one-to-one conversations with manager.
  • clear signposting of whistleblowing policies where appropriate.
  • use workers’ experiences to influence organisational policy and practice, e.g. how their terms & conditions affect them and any barriers women and minority ethnic and disabled people may be experiencing.
  • seek and welcome worker representation on boards.
  • promote a strong culture of openness and transparency and encourage acceptance of different viewpoints.

Collective and individual voice channels:

  • formal and informal arrangements are in place through which meaningful individual and collective dialogue take place, including one-to-ones between workers and management, appraisal/feedback processes, team/organisation meetings.
  • constructive dialogue between the employer, workers and where appropriate a relevant trade union/s to address workplace issues or disputes, e.g. absence management, grievance, health & safety.
  • care support services
  • catering
  • construction/ works
  • education services
  • facilities management services (maintenance, repair & cleaning)
  • health services
  • hospitality
  • manufacturing
  • utilities

 

 

 

 

 

Investment in workforce development

Definition

Intended benefit/outcomes

Examples of what good looks like/bidder response

Example sectors          

Effective workforce development involves employers providing opportunities for their workers at all levels and should be a shared commitment between the employer and the workers. Everyone should be able to engage in lifelong learning.

 

 

Organisations that invest in the skills of their workforce can generally expect their workers to add more value, provide a better service, achieve higher levels of productivity and be more resilient and responsive to change.

Talent management is crucial, even when labour markets are in flux. Talented job seekers are more likely to apply for roles in organisations that are committed to developing their people for current and future roles. Fair Work should therefore be built into an employer’s recruitment and retention processes.

Investment in workforce development can also build a more engaged and fulfilled workers; and equal access to training is important in advancing equality at work and closing pay gaps. When people can continue to learn and develop, and use their skills and talents to add value, they gain a greater sense of control over their work and scope to make a difference. This helps build their confidence and self-belief, improving individual and organisational wellbeing.

 

  • integrate learning and development in the organisation’s strategic planning and workers and management jointly identify development needs and priorities, ensuring both individual and organisational needs are met.
  • provide regular equality and diversity training for all workers.
  • provide regular learning and development opportunities which are regularly reviewed, to help build the organisation’s resilience and responsiveness to change.
  • provide upskilling to workers, especially those in sectors most affected by the net-zero transition (i.e. construction, oil and gas, transport and manufacturing).
  • climate literacy training is provided to workers.
  • managers have development discussions with individuals and teams and prioritise this as part of operational activity.
  • workforce Development Plans and Succession Management Plans are in place.
  • offer formal and informal learning across the workforce, relating to people’s particular role and wider development, i.e. Driver Safety Awareness training.
  • committed to providing apprenticeships.
  • workers are supported to keep their professional qualifications up-to-date.
  • the organisation has an appropriate charter mark achievement such as Investment in People or EFMQ.
  • the organisation invests in and utilises the skills and knowledge of union equality, learning and other workplace representatives and resources.
  • engage constructively with union learning reps and Scottish Union Learning activities.

Service contracts including

  • Care support Services
  • Catering
  • Construction/works
  • Education Services
  • Facilities management services (maintenance repair & cleaning)
  • Health services
  • Manufacturing
  • Utilities

 

 

 

No inappropriate use of zero hours contracts 

Definition

Intended benefit/outcomes

Examples of what good looks like/bidder response

Example sectors       

Although there is no legal definition of a zero-hours contract, in the context of Fair Work, such a contract is one which does not guarantee any work to the individual and does not set out a minimum number of hours (whether ongoing or for a set period).

An employer is likely to be using a zero-hours contract inappropriately if:

·       a worker is offered a regular pattern of work or regular number of hours but is offered only a casual/zero-hours contract;

·       a worker has had no say in the zero-hours contract and actually wants a contract of employment guaranteeing a minimum number of hours;

·       it put pressure on a worker to accept the terms of a zero-hours contract (where challenged) in order to keep their job;

·       there is an expectation that workers will accept all hours offered but there is no reciprocal expectation that the employer will guarantee hours of work or honour time-off.

 

It is only right that workers are in jobs that can provide secure, consistent contracts and pay, at least, a real Living Wage. However, in addition to payment of the real Living Wage, the number and frequency work hours is important. That is why The Scottish Living Hours Accreditation Scheme has been launched, which recognises that in addition to payment of the real Living Wage, the number and frequency work hours are critical to tackling in-work poverty.

 

Those employers using zero-hours contracts should be able to credibly explain the exceptional circumstance which leads them to using such contracts and the steps they are taking to review their business model to eliminate these circumstances.

All workers should be able to plan for their work and life, to know when and for how long they will be required to work, and how much they can expect to earn from week to week. This is key to reducing in-work poverty, which disproportionately affects women. It can also alleviate uncertainty, anxiety and stress, helping to support workers' positive mental health and wellbeing.

As well as being the best option for individuals, the use of secure contracts can benefit the employer. For example, the employer is likely to be regarded as being fair and an employer of choice, which can help with recruitment and retention.

Equally, a worker who has a secure contract is likely to be more committed to the organisation and its objectives, which can boost their motivation and productivity.

·       workers are employed on open-ended or fixed term contracts with confirmed hours and work pattern.

·       gained or working to gain Living Hours Accreditation.

·       workers have a contract which accurately reflects the hours worked, guarantees a fair minimum number of hours per week and does not involve compulsory overtime.

·       workers get reasonable notice of shifts – at least 4 weeks ahead of time, and are paid for cancelled shifts within this period.

·       core and flexible workers’ resources are reviewed at least annually to determine if any workers on a zero-hours or minimum-hours contract can be moved to a permanent or fixed-term contract with a fixed number of hours and/or a regular pattern.

·       zero-hours contracts are not used to fill longer-term vacancies.

·       there is a clear, published policy and process to enable someone to request a move from a zero-hour contract with guaranteed and set hours.

 

 

 

 

 

Service contracts including:

 

·       care support services

·       catering

·       construction/works

·       education services

·       facilities management services (maintenance, repair & cleaning)

·       health services

 

 

Action to tackle the gender pay gap and create a more diverse and inclusive workplace

Definition

Intended benefit/outcomes

Examples of what good looks like/bidder response

Example sectors                   

Fair Work expects employers to go beyond their legal obligations under the Equality Act 2010, ensuring the protections for workers discriminated on the basis of their agedisabilitygender reassignmentmarriage and civil partnershippregnancy and maternityracereligion and beliefsex, and, sexual orientation.

Tackling labour market inequalities is not only necessary for creating a fairer and more equal society, it can also help boost Scotland's economic performance.

Gender

The gender pay gap exists because women earn significantly less than men over their careers. A main driver of the gender pay gap is stereotyping which from an early age drives occupational segregation that moves women especially, into industrial sectors dominated by lower pay and jobs that are regarded as 'women's work' and under-valued, that is, the five C's: catering, cleaning, cashiering, clerical, and caring. As women are still regarded as the primary care giver, their work choices can be limited to typically lower-paid and part-time roles. This is especially true when women return to work following pregnancy and maternity.

Women can also be living through difficult personal circumstances which could include, for example, experiencing domestic abuse (or other forms of Violence Against Women and Girls (VAWG)), or be moving on from commercial sexual exploitation. This can limit women's opportunities to progress in the same way men can, which dilutes diversity at senior management levels. More generally, employment opportunities can be blocked by a lack of access to quality, fair paid and flexible work which accommodates caring and health commitments such as menopause support; by public transport systems that are inaccessible, irregular (especially in rural areas), and often unsafe (which impact on women especially who are the majority of users of public transport); by unchecked workplace sexual harassment and by recruitment processes that fail to take into account, understand, and appreciate someone's cultural, language or communication needs.

The Close your pay gap toolkit provides a range of guidance and advice to help employers calculate their gender pay gap and identify actions to reduce it.

Racialised minorities

Employment can play a major part in addressing racial inequality. Scottish Government's Anti-Racist Employment Strategy is a call for action and a guide to address the issues and disadvantage experienced by people from racialised minorities in the labour market in Scotland, particularly disparities across employment rates and pay outcomes. The gap in employment rate for the minority ethnic population in Scotland is consistently and persistently high. Through fair working practice, racialised minorities will be able to access and sustain employment commensurate with their skills, experience and/or employment goals and in working environments that are diverse and inclusive.

Disability

Disabled people experience some of the most persistent issues around discrimination and a lack of access to opportunity, and the disability employment gap remains the largest gap for any equality group on the labour market. We need to ensure our workplaces are designed and operating in ways that break down physical and other barriers and exclude disabled people, and instead create opportunities and open and welcoming workplaces. The Fair Work Action plan takes forward our commitment to at least halve the disability employment gap by 2038.

Information about employment issues for disabled people is available from for example Inclusion Scotland through We Can Work and from Scottish Union of Supported Employment (SUSE).

Flexible working options are also of huge importance in supporting progression in employment for all of these groups, and you may wish to refer to the advice in family friendly and flexible working practices criteria section of this table for examples of good practices, and the benefits to employers and workers in adopting such practices.

 

Measures to tackle the gender pay gap and create a more diverse and inclusive workplace help to ensure that economic, social and cultural rights are respected, protected and fulfilled. For example, this includes creation of employment opportunities and income, reducing impact or potential of poverty, tackling discrimination in the workplace, creating a safe working environment for all, and supporting workers with families.

By taking action to reduce gender, disabled and race pay gaps and to widen and improve diversity and inclusion in their organisation, an employer can tap into a rich source of available talent and potential. This makes good business sense and enables people to build a career now and for the future. It can also highlight current practice and areas for change and intervention, helping to create a culture of equality and diversity in the workplace and benefiting workers and employers alike, such as:

For employers:

Increasing diversity and the gender balance in leadership roles leads to better decision making, improved performance and higher profitability across the organisation.

Positive relationships and diverse teams can generate creativity, innovation, motivation, and loyalty, helping to improve productivity, profits and business growth.

Workforce diversity helps organisations to better understand and meet the needs of a diverse customer base; this can give them a competitive advantage in attracting a wider pool of customers who see themselves reflected in the workforce composition.

For workers:

Simple improvements to the workplace environment and practice convey positive messages about the organisational culture employers wish to create, and help ensure workers feel supported and valued.

Workers' mental health and wellbeing can improve if their employer introduces practices that support a good work-life balance and systems to tackle bullying and harassment which can help reduce absenteeism and attrition.

The importance and value of diversity and inclusion can be improved through equality and diversity training and other positive action focusing on increasing real awareness and understanding.

 

  • the organisation’s values on how we treat each other are widely known and adopted, e.g. everyone is treated with kindness, dignity and compassion.
  • equality, diversity and inclusion programmes and/or working groups are in place to create a more diverse and inclusive workforce.
  • the organisation produces annual gender pay gap reports.
  • statement confirming equal pay policy.
  • recruit in ways that provide equality of opportunity, including for local people to secure good jobs.
  • clear job descriptions that welcome all applicants, advertised in accessible formats and wide range of outlets, removal of specific information from applications to avoid bias.
  • recruitment, retention and promotion processes prevent bias and barriers, e.g. ’blind’ recruitment; providing any additional support/adjustments at interviews; diversity in interview panels; and exit interviews are used to understand why a person is leaving.
  • workers have opportunities to influence the organisation’s approach to workplace equality, including by sharing their own experiences.
  • the organisation gathers data to understand its workforce diversity and has a plan in place to address under-representation.
  • governance structures are gender balanced and the organisation is working to ensure parity for racialised minorities, disabled people, young people and workers over 50 years.
  • workplace adjustments are in place and made for disabled people or those with long term health conditions who need it. Additional support for adjustments are accessed through Access to Work.
  • flexible working is encouraged across the organisation from day one of employment, subject to business need.
  • enhanced maternity, paternity, adoption or shared parental pay beyond the statutory minimum is available for all workers, and workers are supported to return to work through keep in touch days and refresher courses.
  • there are clear career pathways for women, with support for those returning to work after a career break and to help minority ethnic, disabled people and workers over 50 years to progress.
  • a private, healthy and safe environment is provided for breastfeeding mothers to express and store milk. Health & Safety Executive.
  • the organisation provides support to women experiencing menopause in the workplace. Information is available from NHS Inform and Close the Gap.
  • flexible working conditions are provided to support childcare or other dependant arrangements for lone parents or carers.
  • policies are in place that address bullying, harassment and discrimination in the workplace.
  • policies are in place that align with Equally Safe, Scotland's strategy for preventing and eradicating violence against women and girls (VAWG).
  • staff and policies recognise Commercial Sexual Exploitation as a form of VAWG and support the policy principles, applying these to relevant policy and practice.
  • the organisation gains Equally Safe at Work accreditation to prevent workplace sexual harassment.
  • everyone has equal access to appropriate learning and development opportunities.
  • all workers have opportunities to discuss their support needs with management.
  • the organisation is a recognised Carer Positive employer.
  • safe spaces are provided for workers to express their concerns and raise issues and where workers are confident that their concerns are dealt with appropriately by trained personnel.
  • mentally healthy workplaces are promoted and supported where mental health and wellbeing is meaningfully discussed and where stigma and discrimination is addressed.
  • the organisation has a safety policy for workers who finish work outside of public transport hours to enable them to get home safely.
  • the organisation uses the Minority Ethnic Recruitment Toolkit to improve the diversity of its workforce by recruiting more people.
  • the organisation has referred to the Scottish Government's Anti-Racist Employment Strategy’s Annexes to consider a range of practice examples to addressing racial inequality in the workplace.

Service contracts including

  • care support services
  • catering
  • construction/works
  • education services
  • facilities management services (maintenance, repair & cleaning)
  • health services

 

 

 

Offers flexible and family friendly working practices for all workers from day one of employment

Definition

Intended benefit/outcomes

Examples of what good looks like/bidder response

Example sectors      

Flexible working and family friendly working practices take many forms including, but not limited to, part-time work and job share, flexitime, compressed hours, term-time, staggered hours, and working remotely and from home. Flexible working can also be a reasonable adjustment for disabled workers or those who have a long-term health condition. It is an important aspect of Fair Work and recognises that being able to balance work with other commitments enables workers to participate and contribute more fully and productively in the workplace whilst protecting their wellbeing and improving job satisfaction.

Genuine flexibility helps to make work possible for people who might otherwise be unable to access, re-enter and sustain employment; creates more diverse and inclusive workplaces, and provides greater opportunity and security for workers. Flexible working will vary from employer to employer and not all jobs in all sectors or within an organisation will lend themselves to the same type or level of flexibility; equally, workers' needs will vary. There is no one-size-fits-all approach and flexible working practices need to work for the individual, the team and the employer.

Flexible working should be adopted as a positive practice and never used to weaken contractual terms or impose new unwanted working practices. When considering introducing new ways of working employers should always consult with workers, and where present trade union or other worker representatives, to ensure both the worker's and employer's perspectives are properly considered, and any unintended consequences are avoided. The needs of employers and workers are likely to change over time and regular review of policy and practice will ensure appropriate provision is in place.

 

 

For employers:

Employers who offer flexible and family friendly working practices attract diverse talent, have happier, more engaged workers and increased productivity. It also helps minimise the loss of valued, skilled workers and the resulting recruitment and upskilling challenges. Offering flexibility allows employers to proactively support workplace equality and tap into an under-utilised talent pool which can help them be competitive, improve their reputation, and attract top new talent and customers.

A range of resources to support employers to adopt flexible working is available, including through Flexibility Works, the Enterprise Agencies and CIPD. Timewise also have guidance for line managers and employees, as well as how to hire flexibly.

For workers:

People who can access flexible and family friendly working practices are better able to harmonise their work and life commitments. This can help them feel more enthusiastic and fulfilled and enable them to develop their skills; it is good for mental health and overall wellbeing.

Flexibility in hours and location can be invaluable for those with caring commitments or preparing for retirement; and people balancing multiple roles or interests. It is of particular benefit to disabled people and those with long term health conditions to who may need additional time or support to ready for or get to work, or who need additional breaks and/ or shorter working days at times.

It is also of particular benefit to women experiencing menstrual issues or menopause while at work. As women are often the primary carer in a household flexibility and enhancing parental leave and pay provision can help support women to fully participate in employment and aid their career progression; it can also increase opportunities for workers to share caring responsibilities more evenly by, for example, utilising shared parental leave.

  • policies and practice are in place to support flexible and family working, developed collaboratively by the employer, workers and, where present, trade union or other worker representative, and are regularly reviewed.
  • jobs are designed around business outcomes not based on fixed locations or times to provide flexibility.
  • flexible working and family friendly policies are highlighted in job adverts.
  • employers and workers have constructive conversations about requests for flexibility. Trial periods or pilots are used to test workable solutions for the individual, team and employer.
  • managers get appropriate training and support to enable them to effectively manage individuals who work flexibly.
  • flexible and family friendly options are available at all levels in the organisation and for all workers – not just women or mothers, and to encourage partners to share caring responsibilities.
  • flexible working is offered as a temporary arrangement to accommodate particular circumstances with review points agreed at the outset by the employer and the worker.
  • learning and development is arranged to accommodate different flexible working arrangements and, where practicable, technology is used to facilitate access.
  • enhanced provision is available to support workers with families, such as more tailored maternity, adoption, and shared parental leave and pay.
  • accessible systems and protocols, such as IT equipment and digital diaries, are used to facilitate effective work practices, enabling remote workers to participate alongside their site-based colleagues.
  • meetings are arranged at times that enable workers to attend (in person, by phone or virtually) so everyone can contribute and feel included.
  • effective use of flexible and family friendly practice is modelled from the top down.
  • develop and maintain a home and other remote working policy with consideration given for workers with protected characteristics and suitable provision to support workers’ mental health and overall wellbeing.
  • working from home and other remote working is not monitored by invasive worker monitoring software.
  • employers, workers and, where present, union or other worker representative, collaborate to agree an approach to flexible and out-of-hours working, with clear boundaries between work and non-work time - enabling workers to disconnect outside working hours.
  • employers with international connections provide flexibility on hours to manage time differences.
  • respect workers’ rights to observe religious customs and holidays.

Service contracts including

  • care support services
  • catering
  • facilities management services (maintenance, repair & cleaning)
  • health services

 

 

Oppose the use of fire and rehire practices

Definition

Intended benefit/outcomes

Examples of what good looks like/bidder response

Example sectors

There is no legal definition of Fire and Rehire practices. 'Fire and rehire' is the terminology currently most used to describe the practice of 'dismissal and re-engagement'.

It is described by ACAS as one option that may be available to an employer seeking to effect changes to employees' contractual terms. It involves dismissing employees and immediately re-engaging them on a new contract with new terms. The new terms being issued to commence on the day following the termination date of the current contract, where the employees' agreement to the changes has not been obtained.

The term is also used to refer to employers holding out the prospect of dismissal and re-engagement to employees or their representatives during negotiations about changing terms and conditions.

We recognise that the vast majority of employers consult and reach agreement when they have to consider making changes to contracts.

 

Under Fair Work principles and the good practice adopted by organisations of all sizes across Scotland, an employer should - from the start of the process - ensure that workers' voice is fully considered through full and meaningful consultation, and including the relevant union/s if present, or other appropriate worker' representative.

The employer should also fully consider all alternatives, drawing on support available from the Scottish Government and its agenciesACASCIPD and other relevant parties.

Where an employer engages constructively with staff to reach voluntary agreement on contractual changes, there are benefits to both employees and the employer, such as:

For employers:

  • in avoiding a dismissal and re-engaging process, the employer can retain skills, motivated workers and protect positive relationships with workers and unions.
  • they can reduce risk of employment-related litigation and the significant legal and potential damages costs this could bring, along with the time, resource and potential disruption of engaging with the process.
  • they can avoid the considerable time and cost associated with replacing personnel who do not accept the new terms and any subsequent training.

 

For workers:

  • they can continue to be employed under terms and conditions they have agreed to, giving them the security of employment and earnings.
  • they have a voice in the workplace and feel engaged in decision-making.
  • they have an ongoing sense of respect, security and fulfilment which contributes to their overall wellbeing.
  • workers are employed on open-ended or fixed term contracts with confirmed hours and work pattern.
  • workers have a contract which accurately reflects the hours worked, guarantees a fair minimum number of hours per week and does not involve compulsory overtime.
  • allow trade union access to the workplace.
  • open to alternative ideas that workers or the trade union may suggest.
  • abide by the terms of employment contracts at all times.
  • engage constructively with workers to reach agreement on any contractual changes.
  • feedback, alternatives and suggestions are sought from workers.

Service contracts including

  • care services
  • catering
  • construction/works
  • facilities management services (maintenance, repair & cleaning)
  • hospitality
  • manufacturing
  • utilities

 

Back to Annex A - What is Fair Work?                                               

Continue to Annex C - Other useful Tools and Resources