Workforce Issues

2.19 If value testing leads to a change in a service provider, then it is imperative that early consultation takes place. Employee issues should be borne in mind from the start, as Transfer of Undertakings (Protection of Employment) Act (TUPE) issues may arise. Even if they do not, all parties should ensure that staff are treated in accordance with Government policy and good practice. To ensure that the value for money delivered by PFI does not come at the expense of employees' terms and conditions, consultation processes should be observed and recorded, referring to current guidance as needed, for instance, on bulk transfers. The Project Company should ensure that the incumbent service provider supplies full and accurate information about employees when required, and that key members of staff are not redeployed, or major changes made to terms and conditions, in advance of value testing. The application of the Code of Practice3 on Workforce Matters should be followed where appropriate, as should the Treasury guidance: Fair Deal for Staff and Fair Deal for Staff Pensions4.




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3 Code of Practice on Workforce Matters in Public Sector Service Contracts, available from http://archive.cabinetoffice.gov.uk/ops/workforce_reform/code_of_practice/imndex.asp

4 Code of Practice on Workforce Matters in Public Sector Service Contracts, available from http://archive.cabinetoffice.gov.uk/ops/workforce_reform/code_of_practice/imndex.asp