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Employment and Pensions - Case studies

Finance, Accounting and Payroll services transformation

We advised a community of 17 NHS Trusts on the employment and pensions aspects of the transformation of Finance, Accounting and Payroll services.

This was by way of a project to award contracts for the future delivery of Finance, Accounting and Payroll services for the majority of Trusts in the Community, to NHS Shared Business Services (NHS SBS). NHS SBS is a 50:50 Joint Venture company created between the Department of Health and Xansa to provide finance and accounting shared services to NHS organisations; the objective of NHS SBS being to realise the full value of such types of shared business services across the majority of the NHS, as part of the NHS response to the Gershon Efficiency Review.

The services had previously been provided to the Community by way of a shared services unit hosted by one of the Trusts. The project was by way of a two stage process; the first being the disposal of the shared services unit to NHS SBS, and the second for NHS SBS to enter into a contract with each of the Trusts for the future provision of the Finance, Accounting and Payroll services.

We were involved an assessment of the application of TUPE to the transfer of WEHT staff employed in the existing shared services unit. This was not straightforward as the intention was that the staff should not transfer to NHS SBS with the unit, but that they should transfer to a service company jointly owned by NHS SBS and Xansa. This was partly because of an improved benefit structure which would only be available if the staff transferred into the Xansa group, and also because NHS SBS was not set up to be an employing body. We agreed a structure which allowed for such a transfer but which gave the staff an appropriate level of protection given that employee issues were regarded as a ‘deal breaker’ by the client.

We assisted with all aspects of negotiating and drafting the documentation for the disposal and in particular, in view of the complicated structure, sought and achieved very favourable indemnity position for WEHT. We also supported the Trust’s HR teams in the information and consultation process with UNISON.

In relation to the form of contract used between each of the Trusts and NHS SBS, we advised on the negotiation and drafting to protect the Trusts’ position.

Finally, we also secured the early removal of the Trust from multiple Employment Tribunal claims brought by employees against NHS SBS. This successful outcome was achieved as a result of our strategy throughout the process which had been to negotiate a position which minimised the Trust’s liability and ensure the greatest possible level of compliance with consultation obligations as was possible in the circumstances.

For further information please contact:
David Widdowson
Tel: 0870 194 7888
david.widdowson@bevanbrittan.com


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