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Reducing Grave Professional Misconduct Risk in Your Supply Chain

The Scottish Government has released guidance to help reduce the risk of grave professional misconduct in your supply chain, with its latest Policy Note Public procurement - human rights and grave professional misconduct: SPPN 3/2026.

SPPN 3/2026 explains how public bodies should proceed when bidders are potentially involved in grave professional misconduct, including breeches of human rights.

This policy note gives public authorities clearer guidance on how to navigate these decisions with confidence. On the supplier side, it encourages bidders to embed good contract practices from day one.

Background

In line with the UN Guiding principles on Business and Human Rights (UNGPs), the Scottish Government requires all businesses, no matter what size, structure or sector, to take measures to uphold human rights.

This means that public bodies must ensure suppliers are not involved in grave professional misconduct before awarding them a contract. But what constitutes grave professional misconduct?

• Exploiting assets in illegal settlements
• Disregarding human rights
• Acting in a way, either through action, inaction or through business relationships, which may have an adverse impact on human rights

Guidance for Buyers

• Mandatory Exclusion – You must exclude bidders who have been convicted under Part 1 of the Human Trafficking and Exploitation (Scotland) Act 2015 from the procurement exercise. The ban lasts five years from the date of conviction.
• Discretionary Exclusion – You can exclude bidders who have failed to meet their obligations under environmental, social or labour law, for up to three years from the event. Bidders who are deemed guilty of grave professional misconduct, can also be excluded. Exclusion on this basis doesn’t require criminal conviction, however, you must provide evidence of the misconduct to support your decision.

Guidance for Suppliers

• Make sure your policies and documentation on labour standards, environmental compliance and human rights are up-to-date. This demonstrates to buyers that you take these responsibilities seriously.
• If you have been convicted, but can successfully provide evidence of having paid compensation, collaborated with investigating authorities, and taken concrete measures to prevent misconduct, you must not be excluded from competition.
• If the buyer deems the remedial action insufficient, they must provide a written explanation of their decision to exclude you.

As each case is different, SDP recommends buyers seek legal advice before making decisions about excluding suppliers from competition.

SDP Offers Training on the Delivery of Policy Outcomes, including Fair Work Practices and Net Zero

If you are a Scottish SME, then you can access SDP’s free tender training for more guidance on this topic below:

2.5 Responding to Tender Policy Requirements - Power of Procurement

Training is free to attend, but you must first register with the Supplier Development Programme.