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Jurisdiction(s):
United Kingdom
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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...

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UK central government outsourcing pensions: when the old Fair Deal still applies, interaction with Fair Deal 2013, TUPE, broadly comparable schemes, bulk transfers, re-tenders and enforcement

Practice notes
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TUPE and pensions

When a public service moves from central government to a Contractor in the private Sector, particular safeguards typically apply to the pension entitlements of staff who transfer. Those safeguards were first set out in Annex A to HM Treasury’s guidance ‘Staff Transfers From Central Government: A Fair Deal for Staff Pensions’ (the old Fair Deal). The old Fair Deal extended protections beyond the minimum required under the Transfer of Undertakings (Protection of Employment) Regulations 2006 (TUPE), SI 2006/246, the Pensions Act 2004, ss 257–258, and the Transfer of Employment (Pension Protection) Regulations 2005, SI 2005/649. For added detail on TUPE, see TUPE—what pension benefits should the transferee provide? and TUPE and Beckmann—the pensions exception.

Old Fair Deal—interaction with Fair Deal 2013 and when it applies

The old Fair Deal was published in June 1999 and applies solely to central government departments and agencies. It is guidance rather than law, and carries no binding legal force. It deals with scenarios involving the transfer of employees as part of a business transfer, and is therefore chiefly focused on moves between government and the private sector...

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Gary Delderfield
Gary Delderfield

Gary Delderfield is a partner in Eversheds Sutherland's Human Resources Practice Group. He specialises in pensions and also heads our Public Sector Pensions Group.He advises trustees, employers and providers on a wide range of contentious and non-contentious pension issues. Gary is also a nationally recognised expert in the area of public sector pensions law advising clients on issues across local government, central government, education, health and voluntary sectors.His recent experience includes setting up a new final salary pension scheme, advising on a section 75 withdrawal arrangement, advising the trustees of a final salary pension scheme on the winding up of the scheme and advising a private contractor on the pension aspects of a large scale TUPE staff transfers from the public sector.Gary is a regular speaker on pension issues and speaks on the Local Government Employers' annual...

Web page updated on 22/05/2026

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