Issues
EMPLOYMENT
Many valid concerns have arisen was to whether or not public sector employees who are transferred to the private sector following implementation of a PFI scheme will find themselves at a disadvantage. To ensure that the private sector conforms to best employment practices, the Transfer of Undertakings (Protection of Employment) Regulations were established by the UK Government to preserve public sector employees' terms and conditions when a business or undertaking, or part of one, is transferred to a new employer.
Below are key points relating to some of the employment aspects of PFI.
- In choosing between bidders, the public sector must, in accordance with Government policy, evaluate those bidders’ proposals for the scheme in question with respect to:
- Transfer of Undertakings (Protection of Employment) Regulations (TUPE)
- Staff management
- Pay and contract terms and conditions, including pension issues.
- Training and labour relations.
- Under TUPE, employees’ contracts are transferred to the contractor, who effectively steps into the shoes of the previous employer in relation to any pre-transfer liabilities. These employees are ideally identified within the project agreement.
- The Retention of Employment Model (REM) ensures that there will be a transfer of all staff under TUPE from the NHS Trust to the private sector within the PFI Scheme. However, the model allows staff the opportunity to opt out of the transfer. In these circumstances, the NHS will offer revised contracts of employment allowing staff to be seconded to the private sector service provider.
- The public sector must involve staff and their representatives in a process of continuous dialogue during the PFI procurement period. Staff, both individually and through their representatives, must have a genuine opportunity to express their opinions and views and to influence decisions.
- The number and type of staff employed by a Hospital Trust have to be adequate to operate the new project. Some staff may become redundant when a PFI scheme goes ahead, but this may be due to other factors such as if the new facility is more efficient and/or involves shutting down two or more older ones.
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Issue Paper 2 - Employment
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