Staff transfer issues

5.12  The Government policy is to enhance worker protection and ensure fair and reasonable treatment of staff involved in delivering PFI projects based on:

•  being open with staff;

•  protecting terms and conditions for both transferees and new joiners; and

•  protecting staff pensions.

5.13  The staff delivering the services will be employees of the Project Company or, more likely, their sub-contractors, but if the services are to be continued to be delivered either by another company or by the Authority, then TUPE Regulations and other regulations will apply and the Authority should ensure that the Project Company is aware of its obligations and that these are also taken into account once the future strategy is agreed.

5.14  Relevant legislation, directives, regulations and guidance are noted in Box 2 below. However, this is not to be regarded as a comprehensive list and Authorities must ensure they have up to date advice at the time of planning.

5.15  It is also essential that a strategy and plan for liaising with staff representatives and communicating with all affected staff is prepared and agreed well in advance of any exit/transition activity.

Box 2: Staff Transfer References 

•  Revised Transfer of Undertakings (Protection of Employment Regulations) April 2006 

•  Transfer of Undertakings (Protection of Employment) Regulations 1981 (SI 1794) as amended (which implement European Community Rights Directive (77/187/EEC as amended by Directive 98/50 EC and consolidated in 2001/23/EC). 

•  Code of Practice in Workplace Matters in Public Sector Service Contracts (March 2005) which will form part of the services specification and conditions except where Best Value Code of Practice on Workforce Matters in Local Authority Service Contracts applies or other conditions have been announced. 

•  HM Treasury guidance note (June 2004) A Fair Deal for Staff Pensions – Procurement of Bulk Transfer Agreements and Related Issues. 

•  Cabinet Office Statement of Practice on Staff Transfers in the Public Sector (2000) and annex A Fair Deal for Pensions. 

•  HM Treasury statement A Fair Deal for Staff Pensions (1999)