9.1 Where the service provider recruits new staff to work on a PPP contract alongside employees transferred from the PSO, it will offer employment on fair and reasonable terms and conditions which are no less favourable overall to those of transferred employees.
9.2 The basis of comparison to ensure that paragraph 9.1 is met should be the package of terms and conditions which already applies to transferred employees, or the terms and conditions which apply for the same job in the public authority. These will be available within the PSO, or set out in national agreements.
9.3 There can be flexibility for negotiation between service providers and trades unions to agree local adjustments to working practices and terms and conditions for transferred employees and new appointees. The underpinning principle is to consider employees' terms and conditions (other than pension arrangements which are dealt with in paragraph 9.4 below) in the round - as a 'package'. This Protocol does not therefore prevent service providers from seeking to agree, through negotiation with the trades unions, a package of terms and conditions for new recruits which differs from that of transferred employees, so long as the overall impact of the changes meets the conditions set out above. The aim is to provide a flexible framework under which the provider can design a package best suited to the delivery of the service, but which will exclude changes that would undermine the integrated nature or quality of the workforce.
9.4 The service provider will consult representatives of a trades union where one is recognised, or other elected representatives of the employees where there is no recognised trade union, on the terms and conditions to be offered to new recruits. The arrangements for consultation will involve a genuine dialogue. The intention is that contractors and recognised trades unions should be able to agree on a particular package of terms and conditions, in keeping with the terms of this protocol, to be offered to new joiners.
9.5 The service provider will be required to offer new recruits to a PPP workforce access to the same pension arrangements as transferred employees. These arrangements must be the same as, or broadly comparable to those currently available to PSO employees. Where possible, this will be achieved by access to the PSO's scheme through Admitted Body Status, with the new employer making the requisite contributions.
9.6 In circumstances where paragraph 9.5 does not apply, one of the following pension provision arrangements must be offered:
• membership of a good quality employer pension scheme, either being a contracted out, final-salary based defined benefit scheme, or a defined contribution scheme. For defined contribution schemes the employer must match employee contributions up to 6%, although either could pay more if they wished, or
• a stakeholder pension scheme, under which the employer will match employee contributions up to 6%, although either could pay more if they wished.