1 April 2011
The Local Government minister announced earlier this week that the Code of Practice on Workforce Matters in Local Authority Contracts ("the Two-Tier Code") is being withdrawn as part of the Coalition’s plans to reduce red tape and develop the localism agenda. The Minister commented in a Parliamentary statement:
“I am revoking, with immediate effect, the guidance on work force matters which formed part of the last Administration's best value regime. This is the handling of work force matters in contracting and the code of practice on work force matters in local authority service contracts ... Removing this guidance will help create a level playing field, ensure more opportunities for innovation, help ensure better value for taxpayers' money in the provision of public services, and remove red tape that hinders job creation ...”
The Minister also confirmed that the withdrawal of the two-tier code will not impact on “... existing TUPE regulations and provisions in the Employment Act 2008 or other employment legislation.” The abolition will not be applied retrospectively so existing contracts and the employment terms will not be affected by withdrawal of the code.
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