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EC DIRECTIVES CLASH UNDER INVESTIGATION

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The European Commission is investigating whether there is a clash between procurement and employment protection dir...
The European Commission is investigating whether there is a clash between procurement and employment protection directives. The move was prompted by the UK's voluntary privatisation activity. The commission is considering whether councils seeking to apply the Acquired Rights Directive when privatising services may be breaching procurement law.

At issue is whether a demand that bidders take over council staff amounts to a local labour clause. Under procurement rules public bodies letting contracts cannot insist contractors use local labour or local materials.

Croydon LBC confirmed the European Commission had raised this issue with it after the council advertised in the Official Journal of the European Communities inviting tenders for financial services work. The Official Journal entry included the words: 'A prior condition of the contract is the transfer of staff to the successful tenderer from the council's finance department'.
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