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Notification to Parliament of a Contingent Liability: Indemnification to CGI IT UK Ltd

Volume 691: debated on Thursday 18 March 2021

In line with our emergency response for nuclear incidents obligations, my Department has been developing a new software application to support the management of nuclear emergencies. The new system will replace two ageing legacy systems managed by BEIS and MOD.

My Department is procuring application management and support (AMS) services presently. We intend to indemnify the selected supplier in respect of liabilities that they may incur if employees of the former supplier of these services bring employment law claims against them in relation to the application of the Transfer of Undertakings (Protection of Employment) Regulations 2006 (TUPE).

In relation to this, I have today laid before Parliament a departmental minute giving notice of the Department incurring this contingent liability in the form of indemnity protection provided to the selected supplier.

We believe it is appropriate to incur this contingent liability, to ensure that the new software system can go live without any delay. We consider the provision of this liability as the best value for money option to ensure the new service is available.