Compliance with Code Obligations (Clause 1.8)

2.42  Clause 1.8 imposes an obligation on the Contractor to have regard to the Code of Practice in interpreting and applying the Code Obligations. The Code Obligations are defined as those substantive employment obligations which derive from the Code of Practice and which are set out in the standard drafting. The reason for expressly referring to these obligations is to ensure that it is only these parts of the Code of Practice that are intended to be directly applicable in law under the terms of the Agreement. This is to avoid any confusion that any additional matters in the Code of Practice, which are merely explanatory, might also be interpreted to be a legal obligation on the Contractor under the Agreement.

2.43  Clause 1.8.2 is intended to apply to New Employees who are recruited to work alongside the Transferring Employees as part of the transferred undertaking. It is hoped the drafting avoids catching other incidental employees.

2.44  The Code of Practice does not require that New Employees be given terms and conditions identical to those of Local Authority transferred staff but that their terms and conditions are fair and reasonable and in overall terms "no less favourable" than those of the Local Authority transferred employees. This means a package of terms can be offered, the value of which is no less than those of the Local Authority transferred employees' terms and conditions, but not necessarily identical.

2.45  Clause 1.8.3 reflects paragraph 9 of the Code of Practice which requires the Contractor to consult with trade unions or other appropriate representatives on the terms and conditions to be offered to New Employees. The arrangements for consultation must involve a genuine dialogue but the precise nature of the arrangements is for the Contractor and the trade unions or other appropriate representatives to agree.