Fair Work in the Tourism & Hospitality Industry: A Guide for Employers
Fair work practices are not just good for your employees—they’re good for business. Happy, respected employees are more engaged, deliver better customer service, and are more likely to stay with your business. This reduces turnover, training costs, and fosters a positive reputation for your establishment, attracting both customers and skilled workers.
Frequently Asked Questions
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Fair work is all about creating a positive, equitable work environment where employees feel valued, respected, and secure.
It balances the rights and responsibilities of employers and workers.
It generates benefits for individuals, organisations and society.
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Fair work practices are not just good for your employees—they’re good for business. Happy, respected employees are more engaged, deliver better customer service, and are more likely to stay with your business. This reduces turnover, training costs, and fosters a positive reputation for your establishment, attracting both customers and skilled workers.
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The concept of fair work in Scotland stems from the Fair Work Framework 2016, developed by the Fair Work Convention. This framework sets a vision for making fair work the hallmark of Scotland's workplaces by 2025. The framework identifies five key dimensions of fair work: effective voice, opportunity, security, fulfilment, and respect, all of which are crucial for building high-performing, innovative workplaces.
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Effective Voice:
Effective voice means creating a safe environment where employees can contribute to decision-making processes, helping to improve service delivery and workplace conditions. In tourism & hospitality, it is vital that staff feel they can openly share their thoughts, ideas, and concerns. Examples of this could be regular team meetings, suggestion boxes, or employee feedback channels.Opportunity:
Fair opportunity ensures equal access to job roles, training, and career advancement for all workers, regardless of background. In hospitality, this could involve offering comprehensive training programs, promoting diversity in hiring practices, and providing clear pathways for career progression.Security:
Employment security is crucial in tourism & hospitality, which often involves variable hours and seasonal work. Examples of security can be providing clear information about wages, contracts, and working hours. When possible, offer permanent or fixed-term contracts instead of zero-hour contracts. Paying at least the Living Wage and ensuring fair scheduling practices also go a long way in making your employees feel secure and valued.Fulfilment:
Tourism & hospitality can be incredibly rewarding when employees feel they have a purpose and room for growth. Let your team members use their creativity and skills—whether it’s contributing to menu ideas or finding ways to enhance customer service. Providing regular training, recognizing achievements, and involving them in decision-making can significantly boost job satisfaction and loyalty.Respect:
Respect in tourism & hospitality means treating every team member with dignity, regardless of their role. It's about promoting a culture of mutual respect between staff, management, and even customers. Implement anti-bullying policies, provide flexible working arrangements, and foster open, honest communication. When staff feel respected, they’re more motivated and committed to providing excellent service.
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It’s simpler than you might think! Here are a few steps to get started:
Listen to Your Team: Set up regular feedback channels, like staff meetings or anonymous surveys.
Offer Training: Provide opportunities for staff to develop new skills and advance their careers.
Ensure Stability: Where possible, offer permanent contracts and clear information about pay and hours.
Recognize Efforts: Celebrate successes, big or small, and encourage creativity and input.
Foster Respect: Create a supportive, inclusive culture that values each team member's contribution.
By focusing on these fair work principles, you’ll create a more motivated, skilled, and committed team that will help your business thrive.
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If you're a rural employer seeking practical ways to implement fair work practices in the tourism & hospitality industry, you're already taking a great step toward building a positive and sustainable workplace.
Rural employers face unique challenges, but with the right strategies, you can overcome them and build a thriving team. For more detailed guidance and resources tailored to rural businesses, view this link.
Fair Work Convention Hospitality Inquiry Report 2024
The Fair Work Convention’s Inquiry into Fair Work in the Hospitality Industry has provided a comprehensive set of recommendations aimed at addressing fair work challenges within the hospitality sector in Scotland.
What is the Hospitality Inquiry?
The Hospitality Inquiry was a sector-specific initiative led by a group comprising hospitality employers, employer bodies, trade unions, workers, and other organizations. The group was co-chaired by representatives from both employer and union perspectives, supported by an academic advisor. This inclusive approach ensured that a diverse range of voices and expertise contributed to understanding the unique fair work challenges in the hospitality industry and devising effective strategies to address them.
Key Recommendations from the Hospitality Inquiry
The Inquiry identified 12 recommendations, with the first seven forming a Fair Work Agreement for the hospitality industry. This agreement is envisioned as a commitment between employers, employer bodies, unions, and the government to promote fair work practices collectively. Below is an overview of the recommendations grouped by key dimensions of fair work:
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Provide Transparent and Predictable Hours: Employers should strive to offer contracts that provide stability and predictability for workers, moving away from zero-hour contracts where possible.
Ensure Pay Transparency: Create clear pay structures and openly share policies on tips, leave, and other benefits to establish a more equal and transparent workplace.
Pay the Real Living Wage: All workers should be paid at least the Real Living Wage to support financial security and stability.
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Foster a Culture of Respect: Implement anti-bullying and anti-harassment policies and ensure that respectful treatment is a core organizational value.
Promote Safe Working Practices: Address the specific needs of night workers by providing safe transport options and ensuring health and safety training is accessible to all employees.
Support Work-Life Balance: Focus on providing consistent and predictable scheduling to help staff manage their work and family life.
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Promote Equal Access to Jobs and Training: Engage with diverse communities and offer tailored support, such as buddying and mentoring programs, to ensure fair and inclusive recruitment and development.
Address Barriers to Progression: Review your workforce profile to identify and address potential barriers to opportunity, especially for marginalized groups.
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Invest in Training and Development: Create opportunities for staff to learn and grow within the industry, and recognize the importance of investing in people to enhance business outcomes.
Support Career Progression: Develop clear and transparent pathways for career advancement, and ensure that job design allows employees to use their skills and creativity.
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Establish Mechanisms for Employee Voice: Set up formal and informal channels, such as team meetings and feedback sessions, to ensure that workers feel heard and respected.
Work Positively with Unions: Consider union recognition and collective bargaining to support effective employee voice and improve fair work outcomes.
Implementing the Fair Work Convention’s recommendations can help your hospitality business not only meet industry standards but become a leader in promoting a positive and equitable work environment. By embracing fair work, you’ll be contributing to a stronger hospitality sector that benefits employees, businesses, and the wider community.
For more detailed information, explore the full report and resources provided by the Fair Work Convention here, including an Employer Support Tool.
You can also access information on Fair Work, the Wellbeing Economy, and how to become a Fair Work employer on the Fair Work Advice and Support Hub.
Living Wage
What is the real Living Wage?
The real Living Wage is a voluntary, independently calculated wage rate based on the actual cost of living. Unlike the UK Government’s National Living Wage, which is set lower, the real Living Wage reflects what employees need to earn to afford basic essentials like housing, food, transport, and childcare.
Key Features of the Real Living Wage:
A Wage That Meets the Real Cost of Living: The rate is calculated based on the cost of a basket of goods and services needed for a decent standard of living.
Voluntary but Meaningful: Accredited Living Wage employers choose to pay this rate because it’s the right thing to do—not because they are legally required to.
Applies to All Workers Aged 18 and Over: Unlike the government’s minimums, the Real Living Wage applies to all workers 18+, recognizing that young adults face similar living costs as older workers.
Why Pay the real Living Wage?
Accredited employers report a wide range of benefits, including higher employee morale, better retention, and reduced recruitment costs. By paying a fair wage, businesses can show they value their staff, which in turn helps attract and retain motivated, loyal, and productive employees.
Becoming a Living Wage employer is more than just about paying fairly—it’s about setting a positive example and helping create a society where everyone can thrive. Join thousands of businesses committed to ending in-work poverty and become a Living Wage Employer today.
Find out more here.
Living Hours
What are Living Hours?
Living Hours is a standard developed to ensure that, alongside a fair wage, employees also receive stability and predictability in their work schedules. The Living Hours standard is designed to combat underemployment and provide workers with the hours they need to make ends meet.
Key Commitments of Living Hours:
Guaranteed Minimum Hours: Workers receive a minimum of 16 hours per week, ensuring baseline income stability. If a worker requests fewer hours, this can be adjusted to meet their needs.
Secure Contracts: Employees should have contracts that accurately reflect the number of hours they typically work, ensuring they aren’t on paper-thin contracts while regularly working more.
Advance Notice of Shifts: Employers commit to providing a minimum of 4 weeks’ notice for shifts and guaranteeing payment if shifts are cancelled within this period.
Why Offer Living Hours?
Providing Living Hours means creating a more secure and predictable work environment for staff, reducing the stress of uncertain schedules and variable incomes. This stability supports employee well-being, enhances loyalty, and boosts morale—leading to higher productivity and retention for employers.
Find out more here.
Living Pension
What is a Living Pension?
A Living Pension is a voluntary standard that helps employees build a pension pot large enough to maintain a decent standard of living in retirement. It builds on the principles of the Living Wage, focusing not only on supporting employees today but ensuring their financial security in the future.
Key Features of the Living Pension Standard:
Adequate Savings Target: Employers commit to ensuring that workers save enough to reach a set target—either through a percentage of salary or a specific cash amount. This equates to 12% of a full-time Living Wage salary.
Employer Contributions: Employers must contribute towards this savings level to help workers build a strong financial foundation.
Inclusive Coverage: The Living Pension applies to all directly employed staff, regardless of age or earnings. Employers are also encouraged to extend this standard to third-party contracted staff over time.
Why Offer a Living Pension?
Research shows that most workers, especially those on low pay, are not saving enough for a secure retirement. By offering a Living Pension, employers support long-term employee well-being and help reduce the risk of pensioner poverty, fostering a workforce that feels valued and supported throughout their careers and into retirement.
Find out more here.
Fair Work in the Tourism and Hospitality Industry: Case studies
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