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Outsourcing makes employment relationships more complex

A greater use of outsourcing across the public and private sector means that employment relationships are set to become more complex, Acas has claimed.

The significant growth in organisational restructuring and the use of outsourcing means that businesses will have to get used to managing groups of employees with different terms and conditions. Moreover, those employers further down the subcontracting chain are likely to have less control over the terms and conditions of their direct employees.

Outsourcing can and does impact on job security, contractual terms and conditions, equality, job satisfaction, new skill requirements, HR practices, employee voice and the role of trade unions. And HR itself has been the subject of outsourcing meaning relationships with line managers and the workforce will become more arms length. 

John Taylor, Acas Chief Executive said:

“It’s vital that employers develop channels for employee voice, so that concerns can be aired early on to tackle potential conflict and consultation is particularly important where there are business transfers. Line managers will also need the right support as they become the new standard bearers of good employment relations.”