Making Progress on Contingent Labour ONE

The REC and colleagues from the Cabinet Office, Crown Commercial Service (CCS), Capita Business, REC members and members from the Interim Management Association (IMA) made further progress last week in a third round of negotiations on the new central government framework ‘Contingent Labour ONE (CL1)’. The discussions, which have been ongoing since the framework was first announced in 2013, have focused on how to make doing business through CL1 both sustainable and commercially attractive to SME suppliers. 

The intention is to bring all existing contracts for central government under one roof, which is why it is so important to get this right. 

In a very positive step forward, CCS and Capita have redrafted a new set of terms and conditions for contractors that are workable for those that choose to operate through a limited company and there are separate terms for PAYE workers. Originally, we raised serious concerns that the previous temporary worker conditions did not adequately recognise this business to business relationship and would place many contractors within scope of IR35 legislation. We are pleased to see that a number of our amendments have been taken into account in the revised terms, and Capita are expected to release these shortly.

In another breakthrough, CCS have recognised that the procurement of very specialist and niche interim managers and contractors does not work under CL1 and an investigation is underway to see how the framework might be flexed to better meet the needs of clients. They are speaking to a number of government departments to assess the demand and will work with Capita, the REC and IMA to develop an effective process. 

Discussions regarding the supplier terms are still ongoing, but from a long list of demands we have reached a number of compromises. We are still concerned that a few pertinent l clauses for members have not yet been resolved. CCS and Capita have shown a willingness to work with the industry and will review our additional feedback in the coming weeks.

The transition to CL1 has, and will continue to be, an adjustment that won’t be without challenges. It is clear that the framework is here to stay and we hope the negotiations so far indicate a willingness to create a system that opens up opportunities rather than poses risks to smaller businesses. Members who would like any further information or to share their experiences, please contact Amanda Ciske, REC Policy Advisor (amanda.ciske@rec.uk.com)