Universities will be made to take action on zero-hours contracts and pay gaps after the Scottish government extended its “fair work” policies to cover the sector.

The move comes as part of wider changes to funding arrangements for universities and colleges and also means they will be required to offer flexible and family-friendly working practices for all workers from day one of employment as a condition of the grants provided by the Scottish Funding Council (SFC).

To receive their public funding, universities will be encouraged to invest in workforce development, avoid “inappropriate use” of zero-hour contracts, address workplace inequalities and pay gaps, and oppose the use of fire and rehire practice. 

Universities are currently only required to meet two “fair working first” policies: providing staff a real living wage, and recognising workers’ voice, such as trade union recognition. 

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The changes will come into effect from April 2027, following an announcement in the Scottish Budget that the government will increase funding to Scottish universities by more than £55 million, equivalent to a 5 per cent uplift on last year’s budget.

higher and further education minister Ben Macpherson said the government was committed to fair working practices in the public sector and “beyond”.

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“It is at the heart of our ambition to move towards a well-being economy that is valued by how it benefits employees and communities, alongside traditional economic indicators. 

“Implementation of Fair Work First must be the guiding criteria to promote fairer work practices for staff within tertiary education, and in particular in colleges and universities.

“The SFC will now look to ensure that institutions aim to adopt all Fair Work First criteria from April 2027, while acknowledging the sector will be at different stages of implementation and appropriate transition periods may be needed.”

The announcement comes ahead of the final vote and stage three amendments to the Tertiary Education and Training Bill, which proposes further reform to the funding of post-school education and skills.

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Westminster has also sought to improve workers’ rights, with the Employment Rights Act, which came into effect in December,��ending zero-hour contracts,��banning “fire and rehire” practices and extending unfair dismissal protection. Its implementation is being staggered throughout 2026 and 2027.

Mary Senior, Scotland official at the University and College Union, said it had “for a long time argued that universities need to do better on fair work, and that each of the fair work principles are integral to modern workplaces”.

“It is important, in taking forward today’s announcement, that the Scottish Funding Council proactively monitor university employers’ adherence to fair work, and that there is opportunity for trade unions to feed back when employers are not fulfilling their responsibilities to their workforce.”

juliette.rowsell@timeshighereducation.com