Protection for outsourced public-sector workers

Implementation date: October 2026

The Employment Rights Bill reinstates the "two-tier code" relating to the protection of workers under public-sector outsourcing contracts. 

The Bill includes provisions to require contracting authorities to ensure that workers employed by a supplier on an outsourced public-sector contract are treated no less favourably than those transferred in from the public authority (ie avoiding a two-tier workforce). Transferring workers must be treated no less favourably than when employed by the public authority. 

The Bill provides for the publication of a code of practice containing guidance for contracting authorities. The previous "two-tier code" was withdrawn in 2011.

The Government has confirmed, in Implementing the Employment Rights Bill: Our roadmap for delivering change, that these measures will take effect in October 2026.