Businesses in Scotland that provide secure contracts, flexible hours and pay the real Living Wage will be able to apply for Living Hours accreditation.
The new scheme will recognise employers who offer reasonable working conditions and wages for staff in an effort to tackle in-work poverty.
The Scottish Living Hours Accreditation Scheme follows on from a campaign for firms to pay staff enough to cover the basic cost of living, currently calculated as £9.50 per hour outside London.
Accreditation will require companies to pay the real Living Wage, give staff contracts reflecting the actual hours they work, and a guaranteed minimum of 16 hours per week if wanted by the employee.
It will also commit firms to give workers at least four weeks’ notice of their shifts and guaranteed payments if shifts are cancelled within that time.
The scheme, backed by £380,000 of funding, will be administered by the Poverty Alliance, which will approach employers from August 1 to start the accreditation process.
Director Peter Kelly said: “Building on the strength of the Living Wage movement, we need to be more ambitious in finding ways to support employers to make a stronger commitment to fair work practice.
“By working with our 2,000-strong network of accredited Living Wage employers, we will support employers to become Living Hours-accredited, helping to tackle the problem of insecure work and in-work poverty in Scotland.”
Fair work minister Richard Lochhead said: “No-one should be working in an insecure, unstable job that doesn’t pay the real Living Wage.
“Good progress has been made on the real Living Wage in Scotland, with over 2,000 employers now being accredited and helping to reduce in-work poverty.
“We are going further and will now introduce a national Living Hours Accreditation Scheme for Scotland in the first 100 days of this Parliament.
“Together with the Poverty Alliance and Living Wage Scotland, the new Living Hours Accreditation Scheme will help to alleviate in-work poverty and create more secure, sustainable and satisfying jobs.
“I encourage businesses across Scotland to look at the scheme and sign up to ensure you are providing the best possible work conditions for your valued staff.
“Fair work is at the heart of our economic recovery and it is only right that workers across the country are in jobs that can provide secure, consistent contracts and pay a real Living Wage.”