Jurisdiction(s):
United Kingdom

Related legal acts

Key definition

Outsourcing definition

What does Outsourcing mean? Outsourcing is the engagement of a third-party supplier to perform functions or services that would otherwise be carried out in-house, with the instructing organisation (including law firms and in-house legal teams) retaining responsibility for the outcome, client care and regulatory compliance. The term is descriptive rather than a single statutory concept, although sectoral rules define it for specific purposes (for example, FCA/PRA and Central Bank of Ireland rules on material outsourcing; SRA Standards and Regulations and law society rules on supervision, confidentiality and client notification). Typical features include an outsourcing agreement or master services agreement setting service levels, governance, audit...

Fair Deal 2013 in central government outsourcing: pensions protection, scope, exceptions, re-tenders, bulk transfers, participation agreements and employer costs

Published by a LexisNexis Pensions expert

Practice notes

Specific measures usually operate to secure a basic level of pension protection for employees whose roles are compulsorily transferred from central government to private sector contractors due to the outsourcing of services. These safeguards are commonly known as ‘Fair Deal’.

Fair Deal protection—background history

Fair Deal guidance first appeared in Annex A of the HM Treasury Guidance ‘Staff Transfers From Central Government: A Fair Deal for Staff Pensions’, issued in June 1999, and was directed solely at central government departments and agencies. This initial guidance (referred to as ‘old Fair Deal’ in this Practice Note) developed over time as follows:

In January 2000, old Fair Deal was annexed to, and cited in, the Cabinet Office Statement of Practice ‘Staff Transfers in the Public Sector’ (COSOP), which was later revised in November 2007 and December 2013. This annexing was significant because the government expects public sector organisations—beyond central government departments, agencies and the National Health Service (NHS)—to follow COSOP.

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Paul Carney

Shoosmiths

Paul advises employers, trustees and public bodies on the legal aspects of all matters relating to pension law. Paul has particular expertise in advising on public service pension schemes and is experienced in drafting documentation for private sector schemes as well as providing ongoing advice on the day to day running of pension schemes. He also provides support to employers and trustees on pensions’ aspects of corporate transactions.Paul’s recent work includes:advising a higher education body in relation to its ongoing participation in the Teachers’ Pension Scheme, the Local Government Pension Scheme and the Universities’ Superannuation Scheme;advising the trustees of an occupational pension scheme in relation to a challenge raised in connection with changes made to the rules of their pension scheme some years earlier in circumstances where those changes may, according to applicable (and recent) case law, have been...

Web page updated on 21/05/2026

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