29.14 [Compliance with Code Obligations228

29.14.1 The Authority and the Contractor shall have regard to the Code in interpreting and applying the Code Obligations.

29.14.2 Subject to clause 29.14.4 (Compliance with Code Obligations), the Contractor shall procure that any New Employees shall be employed on terms and conditions of employment which are, overall fair and reasonable and no less favourable than those of the Transferring Employees [or Transferring Original Employees in a subsequent contract] engaged in the provision of the Services who are working alongside and holding the same or a similar position to that of the New Employees.

29.14.3 The Contractor shall procure that any relevant sub-contractor shall consult with the recognised trade unions and where there is no recognised trade union any other employee representative body on the terms to be offered to the New Employees pursuant to clause 29.14.2 (Compliance with Code Obligations).

29.14.4 In addition to its obligations under clause 29.14.2 (Compliance with Code Obligations) above, the Contractor shall procure that the New Employees are offered either:

(a) membership of the LGPS where the employer has Admission Body status within the scheme and makes the requisite contribution; or

(b) membership of a good quality employer pension scheme, being either:

(i) a contracted-out final salary based defined benefit scheme, or

(ii) a defined contribution scheme under which the employer must match employee contributions up to six percent (6%); or

(c) a stakeholder pension scheme, under which the employer matches employee contributions up to at least six percent (6%).

29.14.5 During the Contract Period, the Contractor shall on request by the Authority provide or procure that the Authority is provided with such accurate and complete information [as reasonably requested by the Authority] as soon as reasonably practicable, including the terms and conditions of employment of the Transferring Employees and the New Employees, where this is required to monitor the Contractor's compliance with its Code Obligations.

29.14.6 The Contractor shall and shall procure that any relevant sub-contractor shall support any central Government sponsored review and monitoring programme on the impact of the Code and on request by the Authority provide the Authority with such accurate and complete information [as reasonably requested by the Authority] as soon as reasonably practicable in order to assist the Authority in doing this.

29.14.7 The Authority and the Contractor shall in the first instance seek to resolve by discussions between them any complaints from any employee or any recognised trade union in relation to compliance by the Contractor and any sub-contractor of its Code Obligations.

29.14.8 Where it appears to the Authority or the Contractor that it is not possible to resolve the matter by continuing discussions between them pursuant to clause 29.14.7 (Compliance with Code Obligations) or where an employee of the Contractor or any recognised trade union writes to the Authority to confirm that it has been unable to resolve its complaint directly with the Contractor or any sub-contractor in relation to the Contractor's Code Obligations:

(a) the Authority shall first write to the Contractor to seek an explanation for the alleged failure by the Contractor to comply with its Code Obligations. The Contractor shall or shall procure that the relevant sub-contractor provide such an explanation in writing within five (5) Business Days of receipt of the request from the Authority;

(b) if the response provided by the Contractor or any sub-contractor satisfies the Authority that the Code Obligations have been met, then the Authority will inform the complainant of this and the matter will be deemed to have been concluded;

(c) in the event that the Authority is not satisfied with the response provided by the Contractor or any sub-contractor the Authority shall write to the Contractor within five (5) Business Days to require the Contractor to take immediate action to resolve this dispute; and

(d) if, following such a request by the Authority the Contractor still appears to the Authority not to be complying with its Code Obligations, the matter shall be dealt with in accordance with the Code Dispute Resolution Procedure in Schedule 20 (Code Dispute Resolution Procedure).

29.14.9 [The Authority shall indemnify and keep indemnified in full the Contractor (for itself and for the benefit of each relevant Sub-Contractor) against all Direct Losses incurred by the Contractor or any relevant Sub-Contractor in respect of the costs relating to the terms and conditions of employment of the New Employees pursuant to compliance with the Code Obligations under this clause 29.14 as a result of an Equal Pay Ruling].

[The Authority shall pursuant to clause 29.12.1(c) be responsible for Direct Losses relating to the terms and conditions of employment of the New Employees pursuant to compliance with the Code Obligations under this clause 29.14 as a result of an Equal Pay Ruling].229]

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228 The drafting takes into account the Code of Practice on Workforce Matters in Local Authority Service Contracts. In the light of the subsequent withdrawal of the Code by CLG, Authorities should assess on a project specific basis whether the Code should apply to any given project. If the Code will not apply, the provisions of Clause 29.14 can be deleted.

229 The first version of this clause should be used where the Authority wants to indemnify in respect of an Equal Pay Ruling. The second version should be used where the Authority would prefer to adjust the Unitary Charge.