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The Directions

These Directions come into force on 18 June. They were issued on 3 June.

Background

David Nicholson, NHS Chief Executive, announced on 1 November 2007 Secretary of State’s proposal to issue directions to standardise notice periods to no more than 6 months for Chief Executives and Executive Directors. Following this announcement a range of views to inform the Directions were taken from key stakeholders, including SHAs, NHS Employers and staff side.

Objectives of the Directions

To introduce a maximum notice period for Chief Executives, Executive Directors and other senior managers of 6 months.

Who the Directions Apply to

These Directions apply to Strategic Health Authorities (SHAs), Primary Care Trusts (PCTs), NHS Trusts (including Ambulance Trusts), and Special Health Authorities (SpHAs).

The Directions apply to Chief Executives, Executive Directors and other senior managers as defined in the Directions recruited to work for those NHS organisations listed in Direction 1 paragraph 3.

What the Directions do

The Directions set a maximum notice period of 6 months for all new contracts with executives affected by the Directions.

The Directions will apply to all new contracts from the date the Directions come into force. Employers will not be prevented from offering notice periods of less than 6 months: a 3 months notice period may be suitable in many cases. Employers will not be required to change notice periods for existing contracts.

The Directions do not apply to Foundation Trusts: Foundation Trusts may wish to use these Directions as guidance on best practice.

The Directions apply equally to fixed term contracts as to a standard contract.

Notice periods longer than 6 months

The Directions enable the Secretary of State (where the employer is an SHA or a SpHA) or, by delegation of powers, the SHAs (where the employer is a PCT or an NHS Trust) to determine that a longer notice period is acceptable.

The power to determine that a longer notice period is acceptable may be needed in appropriate circumstances, for example, to allow for recruitment of a leading expert in a particular clinical or other field (e.g. to take a senior position in a specialist Trust such as a Mental Health Trust), or to secure expertise and experience when recruiting to the Board of an organisation with particular difficulties, such as a Trust that is failing to meet its statutory financial responsibilities.

The employing organisation should present their case to the relevant authority who will be accountable for their decision.

It is important that the case assessment is completed in a timely manner, taking into account the urgency of securing a contract and getting an individual into post.

• Download Directions: NHS Bodies Employment Contracts (Notice Period) 2008 (PDF, 188K)