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Local Government Act 2003

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Changes over time for: Cross Heading: Contracting-out

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Changes to legislation:

Local Government Act 2003, Cross Heading: Contracting-out is up to date with all changes known to be in force on or before 14 November 2024. There are changes that may be brought into force at a future date. Changes that have been made appear in the content and are referenced with annotations. Help about Changes to Legislation

Contracting-outE+W+S

101Staff transfer matters: generalE+W+S

(1)In exercising a power to contract with a person for the provision of services, [F1a relevant authority] must—

(a)deal with matters affecting—

(i)who will be the employer of existing staff if a contract is entered into and carried out, or

(ii)what will be the terms and conditions of employment of existing staff, or the arrangements for their pensions, if their employer changes as a result of a contract being entered into and carried out,

in accordance with directions given to it by the appropriate person;

(b)have regard to guidance issued to it by the appropriate person on matters relating to the employment or pensions of existing staff.

(2)In subsection (1), references to existing staff, in relation to a contract for the provision of services, are to staff who before the contract is carried out are engaged in the provision of any of the services.

(3)Where the provision of any services under a contract with [F2a relevant authority] for their provision is to cease in circumstances where they are to be provided instead by members of the authority’s staff, the authority shall comply with directions given to it by the appropriate person for the purpose of requiring it to offer employment to staff who, before the services cease to be provided under the contract, are engaged in the provision of any of the services.

(4)The duties under Part 1 of the Local Government Act 1999 (c. 27) (best value) of a best value authority have effect subject to subsections (1) and (3).

(5)The duties under sections 1 and 2 of the Local Government in Scotland Act 2003 (asp 1) (best value) of a relevant authority have effect subject to subsections (1) and (3).

F3(5A). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

(6)Directions given, or guidance issued, for the purposes of subsection (1) or (3)—

(a)may be addressed to—

(i)[F4all relevant authorities], or

(ii)authorities of a particular description;

(b)may be different for different cases or authorities.

F5(7). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

[F6(7A) In this section, in relation to England and Wales, “ relevant authority ” means—

(a)a best value authority;

[F7(aa)a county council or county borough council in Wales;]

[F8(ab)a National Park authority for a National Park in Wales;

(ac)a fire and rescue authority in Wales, constituted by a scheme under section 2 of the Fire and Rescue Services Act 2004 or a scheme to which section 4 of that Act applies;]

[F9(ad)a corporate joint committee established by regulations made under Part 5 of the Local Government and Elections (Wales) Act 2021;]

[F8(b)a parish council;

(c)a parish meeting of a parish which does not have a separate parish council; or

(d)a community council.]

(8)In this section[F10, in relation to Scotland]

  • appropriate personF11... means the Scottish Ministers; and

  • relevant authority” means—

    (a)

    a council constituted under section 2 of the Local Government etc. (Scotland) Act 1994 (c. 39),

    (b)

    the Strathclyde Passenger Transport Authority, or

    (c)

    any other body to which Part 1 of the Local Government in Scotland Act 2003 (asp 1) (best value and accountability) applies.]

Textual Amendments

Commencement Information

I1S. 101 in force at 18.11.2003 so far as relating to E. and so far as relating to a best value authority in W. mentioned in s. 101(7) by S.I. 2003/2938, art. 2(b) (with art. 8, Sch.)

I2S. 101 in force at 27.11.2003 so far as relating to a best value authority in W., other than one mentioned in s. 101(7) by S.I. 2003/3034, art. 2, Sch. 1 Pt. I

102Staff transfer matters: pensionsE+W+S

(1)The appropriate person shall exercise his power to give directions under section 101(1) so as to secure that where a local authority is contracting with a person (“the contractor”) for the provision of services that are to be provided under a contract instead of by employees of the authority, it does so on terms—

(a)that require the contractor, in the event of there being any transferring employees, to secure pension protection for each of them, and

(b)that, so far as relating to the securing of pension protection for a transferring employee, are enforceable by the employee.

(2)For the purposes of subsection (1)—

(a)transferring employee” means an employee of the authority whose contract of employment becomes, by virtue of the application of the TUPE regulations in relation to what is done for the purposes of carrying out the contract between the authority and the contractor, a contract of employment with someone other than the authority, and

(b)“pension protection” is secured for a transferring employee if after that change in his employer he has, as an employee of his new employer, rights to acquire pension benefits and those rights—

(i)are the same as, or

(ii)under the directions count as being broadly comparable to or better than,

those that he had as an employee of the authority.

(3)The appropriate person shall exercise his power to give directions under section 101(1) so as to secure that where—

(a)a local authority has contracted with a person (“the first contractor”) for the provision of services,

(b)the application of the TUPE regulations in relation to what was done for the purposes of carrying out the contract between the authority and the first contractor resulted in employees of the authority (“the original employees”) becoming employees of someone other than the authority, and

(c)the authority is contracting with a person (“the subsequent contractor”) for the provision of any of the services,

the authority contracts with the subsequent contractor on terms satisfying the requirements of subsection (4).

(4)Those requirements are that the terms—

(a)require the subsequent contractor, in the event of there being any transferring original employees, to secure pension protection for each of them, and

(b)so far as relating to the securing of pension protection for an original employee, are enforceable by the employee.

(5)For the purposes of subsection (4)—

(a)transferring original employee” means an original employee—

(i)whose contract of employment becomes, by virtue of the application of the TUPE regulations in relation to what is done for the purposes of carrying out the contract between the authority and the subsequent contractor, a contract of employment with someone other than his existing employer, and

(ii)whose contract of employment on each occasion when an intervening contract was carried out became, by virtue of the application of the TUPE regulations in relation to what was done for the purposes of carrying out the intervening contract, a contract of employment with someone other than his existing employer;

(b)“pension protection” is secured for a transferring original employee if after the change in his employer mentioned in paragraph (a)(i) he has, as an employee of his new employer, rights to acquire pension benefits and those rights—

(i)are the same as, or

(ii)under the directions count as being broadly comparable to or better than,

those that he had before that change.

(6)In subsection (5)(a)(ii), “intervening contract” means a contract with the authority for the provision, at times after they are provided under the contract with the first contractor and before they are to be provided under a contract with the subsequent contractor, of the services to be provided under the contract with the subsequent contractor.

(7)Any expression used in this section, and in the TUPE regulations, has in this section the meaning that it has in the TUPE regulations.

[F12(7A) In this section, in relation to England, “ local authority ” means—

(a)a county council in England, a district council, a London borough council, a parish council or a parish meeting of a parish which does not have a separate parish council;

(b)the Council of the Isles of Scilly;

(c)the Common Council of the City of London in its capacity as a local authority; and

(d)the Greater London Authority so far as it exercises its functions through the Mayor.

[F13(7B)In this section, in relation to Wales, “local authority” means—

(a)a county council, county borough council or community council in Wales;

(b)a corporate joint committee established by regulations made under Part 5 of the Local Government and Elections (Wales) Act 2021.]]

(8)In this section[F14, in relation to Scotland]

  • appropriate person”, F15... means the Scottish Ministers;

  • local authority”—

    (a)

    F16. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

    (b)

    F17... means a council constituted under section 2 of the Local Government etc. (Scotland) Act 1994 (c. 39);

[F18(9)In this section,]

  • the TUPE regulations” means the [F19Transfer of Undertakings (Protection of Employment) Regulations 2006], or any regulations replacing those regulations, as from time to time amended.

Textual Amendments

F19Words in s. 102 substituted (with application in accordance with reg. 21(1) of the amending S.I.) by The Transfer of Undertakings (Protection of Employment) Regulations 2006 (S.I. 2006/246), reg. 1(2), Sch. 2 para. 1(i)

Commencement Information

I3S. 102 in force at 27.11.2003 for W. by S.I. 2003/3034, art. 2, Sch. 1 Pt. I

I4S. 102 in force at 1.4.2004 for E. by S.I. 2003/2938, art. 7(a) (with art. 8, Sch.)

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