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Pfi Contracts

Volume 405: debated on Wednesday 14 May 2003

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To ask the Chancellor of the Exchequer what plans he has to insert a fair wages clause into contracts, including PFI contracts between government and private companies entitling agency staff to the same pay and conditions as directly employed public sector employees. [112808]

All staff transferring from the public to the private sector are protected by the Transfer of Undertakings (Protection of Employees) Act. This requires that all staff contracts, with the new employer, contain identical terms and conditions to those in the original public sector contracts, with the sole exception of terms relating to membership of occupational pension schemes. The Local Authority Best Value code of practice and the Scottish Executive protocol, entitle new joiners to outsourced work forces to be offered "fair and reasonable" terms and conditions that are "overall, no less favourable" than those available to transferees.