LRD guides and handbook February 2014

TUPE - a guide to using the law for union reps

Chapter 5

What about changes to the contract terms of new joiners?

[ch 5: page 65]

Only the contract terms of employees who transfer under TUPE are protected, not new employees taken on after the transfer date.

One of the earliest acts of the coalition government was to scrap the “two-tier code”. The central government-level code (Code of Practice in workforce matters in public sector service contracts) was withdrawn in December 2010, and the equivalent local government code (Code of practice on workforce matters in local authority service contracts) was abolished in March 2011.

These Codes were introduced in 2003, following extensive union campaigning to prevent the development of a two-tier workforce in the context of public sector outsourcing. The Central Government Code has been replaced by a set of six “principles of good employment practice for government, contracting authorities and suppliers”. The third principle states: “Where a supplier employs new entrants that sit alongside former public sector workers, new entrants should have fair and reasonable pay, terms and conditions. Suppliers should consult with their recognised trade unions on the terms and conditions to be offered to new entrants.”