Nsl Welcomes New Government Guidance To Replace The Two Tier Code

NSL welcomes new Government guidance to replace the “two tier code”

NSL has welcomed the Government’s decision to withdraw the two-tier employment code for staff employed by local authorities and other public service providers, and replace it instead with detailed guidance on Good Employment Practice.

The new guidance will enable companies supplying staff to deliver public services significantly more flexibility in ensuring they have the workforce tailored to the clients’ requirements, and enabling them to provide the most cost effective delivery of services.

Graham Williams, Commercial Director for NSL commented “This change provides a welcome boost for local authorities looking to save money whilst protecting services. It gives organisations such as NSL the ability to provide greater labour efficiencies to councils, making the financial case for the outsourcing of services such as enforcement and back office PCN processing compelling.”

Chris Gillespie, NSL’s HR Director, said that the new Code largely echoed the employment practices of leading outsourced service providers already. “We think the Good Employment Practice guide is a very sensible step – some employers may find it difficult to manage two-tier workforces if they do not follow the Guide.

“NSL already uses most of the Guide’s recommendations. We have experience in managing two and even three-tier workforces, and there is no doubt that you need to ensure your HR systems are very good if you are to operate two-tier workforces. The key is to achieve a stable and experienced workforce which is able to deliver the services to your clients in the most cost effective way. We think this new guidance will help that process for employers who’s HR processes are able to manage effectively.”

The change will have no impact on the TUPE terms under which public service staff transfer to new organisations.

Announcing the change, Francis Maude MP, Minister for the Cabinet Office, said: "The two-tier code was a voluntary regulation that did little to protect staff while deterring responsible employers from delivering public service contracts. The new Principles of Good Employment Practice set clear standards and give employers freedom to provide terms for staff which are motivating and affordable."

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