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Legal Updates

Repeal of the "Two-Tier Code"

28 March 2011 #Employment

It will come as little surprise that Eric Pickles MP, Secretary of State for Communities and Local Government, has announced the repeal of the Code of Practice on Workforce Matters in Local Authority Service Contracts (colloquially known as the "Two-Tier Code").  It comes just a few months after the repeal of the virtually identical Code of Practice on Workforce Matters in Public Sector Service Contracts in December 2010.  The Two-Tier Code is to be repealed with immediate effect, but will not have retrospective effect: it will continue to govern existing outsourcing agreements and the employment terms that flow from them. 

The Two-Tier Code was introduced in 2003 with the aim of ensuring that, following an outsourcing, private contractors recruited new joiners on the same terms and conditions as those of the employees they had inherited from the Local Authority. 

Mr Pickles explained that repealing the Two-Tier Code will help to create a level playing field; ensuring more opportunities for innovation and better value for tax-payers` money in the provision of public services.  It will also remove red tape that hinders job creation.

The Government will now begin consulting employers, employee representatives and others on whether there might be anything, such as a statement of good employment principles, for example, in place of the Two-Tier Code, that might be helpful for the future.

Clarkslegal, specialist Employment lawyers in London, Reading and throughout the Thames Valley.
For further information about this or any other Employment matter please contact Clarkslegal's employment team by email at by telephone 020 7539 8000 (London office), 0118 958 5321 (Reading office) or by completing the form on this page.
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