HR aspects of outsourcing factsheet

Obligations on the contractor

When you outsource a function, HR issues are key to the success of the arrangement.  The contract that you enter with the contractor should contain provisions to help you stay in control of the HR angle. 

The contractor should:

Control of workforce

• Keep detailed records of the work actually performed by individual employees.  (This will assist in identifying dedicated workers for TUPE purposes.)
• Adhere to the conditions you set regarding numbers, removal and replacement of key personnel and not remove or substitute key personnel without your consent.
• Depending on the type of service to be provided, adhere to conditions set by you regarding minimum levels of qualifications and experience that workers engaged on the contract will have, and how the contractor will deal with any skills gap in its workforce.
• Ensure that at all times there are sufficient numbers and types of workers engaged on the contract to cover absences and peaks in demand for the services.
• Ensure that its workers comply with your policies relevant to the performance of the services, for example, the safe operation of equipment.
• Only use workers with a criminal record with your prior consent. 
• At your reasonable request, instigate appropriate disciplinary action against a worker and advise you of the outcome in writing.
• At your request, remove any of its personnel from the contract.