The Government (through the Department of Business, Innovation and Skills (BIS)) is currently consulting on proposed changes to Transfer of Undertakings (Protection of Employment) (TUPE) regulations. TUPE, the requirement on organisations awarded contracts by public authorities to take on staff at their original terms and conditions (for a limited period), is seen as a major barrier, by some, to the outsourcing of public services.
For example, the government is intending to contract out approximately two thirds of probation services and the successful contractors are required to take on the probation staff who would otherwise be made redundant. Their wages and conditions and, in particular, their pension liabilities, will mean that the contracting organsations will have to have a very high level of financial stability, a condition that voluntary organisations, even large ones, are usually not able to meet.
On the other hand, there are major ethical concerns about reducing the rights of public employees when they are under huge pressure from cuts, redundancies and restructuring.
NAVCA (National Association for Voluntary and Community Action) together with other partners have written a briefing and are conducting their own survey into voluntary sector experiences of TUPE to feed into the review.