星空传媒

The Office of the Deputy Prime Minister has published new statutory guidance on workforce matters. The guidance, made under the provisions of section 19 (4) of the 1999 Local Government Act, incorporates a code of practice for all local authority contracts advertised or entered into since 13 March.

The code applies where a council transfers employees to a private or voluntary sector partner as part of a deal to provide services.

It requires the council to make sure people joining the transferred workforce are offered terms and conditions that are no less favourable than those of the transferred staff.

The "no less favourable formula" does not apply to pensions, however. The code says joiners must be offered a reasonable pension provision, which may be membership of the Local Government Pension Scheme, membership of a good-quality employer scheme or membership of a stakeholder scheme with an employer contribution linked to employee contributions of up to 6% of his or her salary.

During the term of the agreement, the service provider will have to provide the authority with necessary information, including details of the terms and conditions for joiners, so the authority can monitor compliance with the code.

The authority will have the ability to enforce the terms of the code through its contract with the service provider. Where a service provider has not complied with the code, the authority will not be bound to consider that provider for future work.

The contract must contain alternative dispute resolution procedures, such procedures have yet to be finalised.

The government will monitor the code and consult with representatives of local government, trade unions, service providers and the Audit Commission to assist in this process.