Code of Practice on workforce matters in public sector service contracts
On 18 March 2005, the then Prime Minister announced a major extension to
the Code of Practice on workforce matters in public sector service
contracts. Until then, the Code had operated in local government only; the
extension applied it to the wider public sector - including the Civil
Service, NHS and maintained schools - with immediate effect.
The Code sets out an approach to workforce matters in public sector service
contracts involving a transfer of staff from the public sector organisation
to the service provider, or in which staff originally transferred out from
the public sector organisation as a result of an outsourcing are
TUPE transferred to a new provider under a retender of a
contract. It is designed to prevent the emergence of a two-tier workforce
in such cases, ensuring that new recruits receive comparable treatment to
transferred staff.
This Code will form part of the service specification and conditions for
all such contracts (except those where the Best Value Code of Practice on
Workforce Matters in Local Authority Service Contracts applies, or where
other exemptions have been announced).
The Code recognises that there is no conflict between good employment
practice, value for money and quality of service. On the contrary, quality
and good value will not be provided by organisations who do not manage
workforce issues well. The intention of the public sector organisation is
therefore to select only those providers who offer staff a package of terms
and conditions which will secure high quality service delivery throughout
the life of the contract. These must be sufficient to recruit and motivate
high quality staff to work on the contract and designed to prevent the
emergence of a 'two-tier workforce', dividing transferees and new
joiners working beside each other on the same contracts.
Nothing in this Code should discourage public sector organisations or
service providers from addressing productivity issues by working with their
workforces in a positive manner to achieve continuous improvement in the
services they deliver. But its effect will be to discourage potential
service providers from cutting costs by driving down the terms and
conditions for staff, whether for transferees or for new joiners taken on
to work beside them.
