News / Update on the human resources strategy: A quick guide

The Department of Health has issued the latest in a series of letters and documents focused on the human resources issues relating to the transition to new NHS structures. The latest update has been published as an annex to NHS chief executive Sir David Nicholson’s letter about managing the transition and the 2011/12 operating framework.

The operating framework, transition document and letters can be downloaded here

• An estimated 90,000 staff in PCTs, SHAs and the Department of Health will be impacted by the current Liberating the NHS reforms. Staff affected are on a range of terms and conditions including Agenda for Change, Very Senior Managers and Civil Service terms – as well as some organisations specific terms for arm’s length bodies.
• Further HR guidance will be produced in early 2011 covering: NHS staff; staff in the Department; and staff in arm’s length bodies. It will cover a range of issues including the application of TUPE, competition pool, severance payments and support for staff.
• A mutually agreed resignation scheme (MARS) has already been set up for staff who wish to leave immediately. The annex sets out plans to support retention of ‘business critical staff’ who wish to stay in post to support the management of the transition. This will involve a separate pre-authorised MARS and using existing contractual flexibilities.
• For staff wishing to part of the future system, an HR strategy will provide opportunities for staff.
  • PCT staff will have opportunities in the new PCT clusters, in emerging consortia and in new commissioning support organisations.
  • SHA and PCT staff will have opportunities within the NHS Commissioning Board, the Provider Development Authority, the economic regulator and the new structures for education and training. There may also be opportunities within the provider sector.
  • Arm’s –length body staff may have opportunities within the NHS Commissioning Board
  • Department staff may have opportunities within the Department, the Commissioning Board, the Provider Development Authority, the economic regulator and the new structures for education and training.
  • Public health staff in PCTs and SHAs may also transfer to local authorities.
• TUPE may apply to a number of functions carried out by new organisations.
• The NHS Commissioning Board will have its main office in Leeds with a small London base and representation at sub-national level to an extent and in locations to be decided. The location of the new economic regulator is still to be finalised. It will have a London base, but as it expands is likely to require a further location outside London.
• A high level people and functions migration map is being developed to provide a picture over time of the final destinations of different functions and the number of staff working in those functions. The first version of the map will be completed in January 2011.
• The annex provides examples of work done to date including work trade unions and the introduction of a national MARS scheme (now closed) under which 2,200 staff have been approved to leave. Trusts and PCTs wishing to run a local scheme should discuss with SHAs. The Department is also planning a voluntary redundancy scheme for Department and ALB staff in January. SHAs and PCTs in some areas are also implementing or consulting on voluntary schemes. Guidance has also been published on the support employers should be providing staff. All SHAs are working to ensure consistency in a number of areas such as pooling arrangements to give staff access to employment pools that reflect existing and emerging structures.
• To help retain staff critical to the transition, a national pre-authorised MARS will provide a guarantee for eligible applicants of a severance payment calculated in line with Agenda for Change section 16. Short term retention premiums and special payments allowable under existing contractual flexibilities may also be used.

Clusters and assignment

• Clusters will consolidate the functions of existing PCTs and will operate under a single executive team. The design of these teams will be a matter for cluster chief executives and the respective PCT boards. National guidance on the human resources processes relating to clusters will be published in January 2011.
• Clusters will support the development of GP consortia, which may involve assigning staff from PCTs in agreement with the consortium. Assignment is described as the process of aligning relevant staff in PCTs who currently work in functions due to be transferred to consortia. The process of assignment must take account of a consortium’s running cost budget and be developed in consultation with unions and staff.
• GP consortia would have the choice of provider once they become a legal entity following authorisation. However the process may result in the transfer of staff under TUPE.
• Wherever possible staff should be assigned by the end of June 2011 (provisional on the Health Bill).
• Assignment could be used to provide support to consortia in the following areas: an organisational development expert; a qualified or accredited senior finance manager (which could be shared across consortia); a governance expert; and a commissioning expert.
• Once established clusters will identify staff to support commissioning and develop a comprehensive support function for all constituent consortia. These units will become pathfinder commissioning support. These units will work together and develop expertise that could be offered across a wider area. The aim would be to enable them to become social enterprises of joint ventures by April 2013.
• Assignment could be adopted for other functions such as the Provider Development Authority.

Leadership

• Specific resources are being identified nationally, regionally and locally to support the leadership and talent development for all staff.

TUPE and the law

• The proposed Health Bill includes provisions allowing the health secretary of the NHS Commissioning Board to establish staff transfer schemes in relation to bodies established or abolished by the act. Employers intending to make transfers in advance of schemes will need to establish the legal position. In both cases transfers may be covered by TUPE or the Cabinet Office Statement of Practice (COSOP).