The benefits of fair work for social enterprises and charities
Posted: 29 January 2026, in News
Many people working in social enterprise, the voluntary sector and the wider impact economy will have heard of Fair Work.
The Fair Work policy agenda is all about making our workplaces better for everyone, both employers and workers, building inclusive workplaces where everyone is valued and can equally thrive.
In practice this should mean improved employee retention, higher pay, a more engaged workforce with a voice, stronger profits and happier, more fulfilling jobs.
Social enterprises, charities and other impact organisations are well aligned with both Fair Work and the wider aim of a wellbeing economy. Fair Work fits perfectly alongside social purpose.
We’re keen to see more social enterprises, charities and community owned businesses implementing Fair Work.
With around 88% of social enterprises already paying at least the Real Living Wage and 89% with equal opportunities and diversity policies, we’re on the right track in many ways.
It’s true that big challenges exist, particularly for small and start-up enterprises. While aspects of Fair Work bring clear long-term benefits and cost savings, up-front payment of the Real Living Wage, for example, can be difficult.
It’s worth bearing in mind that the Fair Work agenda operates at a devolved level in Scotland and many aspects are voluntary for employers.
Actual employment law is reserved to the UK government, with the new Employment Right Act 2025 covering some aspects of Fair Work, now in place.
However, there are many levers available in Scotland to drive fair work practices, particularly in public sector funding and procurement.
The Fair Work First policy requires employers to meet a minimum standard of practice to access public sector grants. Over £2.6 billion worth of public sector grants were awarded under Fair Work First during 2023 and 2024.
Social enterprises, charities, cooperatives and other impact enterprises must lead the way towards Fair Work for everyone.
With the right support they can implement Fair Work in many more workplaces, showcasing practical successes to other sectors and organisations.
Deeply entrenched social and economic challenges continue to blight Scotland and are keenly felt in many workplaces. Fair Work certainly has a positive role to play in finding the solutions.
But only by investing in both Fair Work development and these social impact organisations can this truly be achieved.
Duncan Thorp, Policy and Public Affairs Manager, Social Enterprise Scotland
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