Written Statement - Publication of the new code of practice on workforce matters, commonly known as the ‘Two-Tier Code’.

Today I am publishing the new code of practice on workforce matters, commonly known as the ‘Two-Tier Code’. This reflects our commitment to public services and the public service workforce and our desire to support a fair deal for the workforce. This has been published on the Welsh Government website and is available below:

The Two-Tier Workforce Code aims to ensure where public services are outsourced to a third party:

• staff will transfer and TUPE will apply and if TUPE does not strictly apply, the principles of TUPE should be followed; and 
• new recruits to the service provider undertaking work on the contract would be employed on Terms and Conditions no less favourable than transferred staff. 

The new Code is based closely on the existing Codes, with the content being based on the fair treatment of transferring staff and the treatment of staff working alongside transferred staff. The content has been modified to:

• cover a broader range of bodies in a single Code, with the Code being applied by a relevant statutory Authority to each body;
• provide strengthened monitoring and reporting arrangements of use of the Code;
• clarify particular aspects (for example, in respect of new joiners); and
• reflect the changed legislative position on pensions, particularly auto-enrolment introduced by the Pensions Act 2008 and the revised Fair Deal.

To support public bodies to apply the Code provisions in contracts, we have also published a Procurement Advice Note and model contract terms. These will provide a useful starting point to enable public bodies to apply the Code provisions in contracts, which could be tailored to suit local needs if necessary.

I am very clear we should seek to avoid a Two-Tier Workforce. A strongly engaged, motivated and harmonised workforce is more productive, capable of producing better work and less distracted by a range of issues associated with inequalities and disparities in Terms and Conditions.

I am also publishing the Summary of Responses to the consultation document ‘The Public Service Workforce: Consultation on Draft Guidance and Directions which include a Code of Practice on Workforce Matters’ which was published on 26 September 2013. Views were invited on the proposals as part of a 12 week consultation exercise which ended on 20 December 2013.