Temporary Staff Advisory Service - DAC Beachcroft

Temporary Staff Advisory Service

In 2014, NHS agency staffing bills reached a staggering £3.3 billion. In his recent Review of Operational Productivity in NHS Providers Report, Lord Carter details how savings of up to £5 billion can be achieved, £2 billion of which could be delivered by improving workflow and containing workforce costs. This coupled with new financial controls announced by Health Secretary Jeremy Hunt to cut costs while improving care in the NHS has resulted in an increased emphasis on tackling staffing agencies.

The introduction of the Government cap on the amount NHS Trusts pay agencies for staff is intended to clamp down on rising NHS staffing agency costs. The new measures are designed to ensure that agency staff will be no better off than NHS colleagues, and put an end to unscrupulous agencies charging three times what NHS clinical staff might earn for a normal shift.

The opportunity to convert existing agency staff into permanent employees will certainly be attractive to NHS Trusts. However, it can be costly! Even though there are several approved Framework Agreements available to use, it appears many NHS Trusts sign up to agencies' own terms and conditions, which contain onerous charging provisions upon termination of the service. As a result, an increasing number of agencies are suing the NHS for transfer fees, placement fees, cancellation fees etc.

What we do

Our employment and litigation lawyers have helped a number of NHS Trusts by providing practical advice on liabilities under existing agency contracts in order to minimise financial exposure upon termination. Our commercial contract lawyers have also worked with NHS Trusts to reduce the risk of this occurring by producing a standard form of contract designed to provide a fairer, and more financially balanced approach to the supply of temporary workers in the future.

What we are known for

Our lawyers are focused on providing legal services to a select range of industry sectors. DAC Beachcroft is widely recognised as the leading strategic, commercial and regulatory legal adviser to the health sector in the UK. This enables experts in employment law, litigation and commercial contracts to work together as a multi-disciplinary team to offer a comprehensive and cost-effective solution to clients.

Detailed elements of our service

Our multi-disciplinary team provides advice on:

  • Advice in relation to extant contracts concluded on an agency's T&Cs in respect of any liabilities arising from termination of the contract and how to avoid/minimise any fees payable;
  • Simple form contract for use when engaging an agency to supply temporary workers (to include NHS friendly T&Cs);
  • Representation in a dispute or claim with an agency where an Introduction fee/Transfer fee is claimed.

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