The Review Group asked for legal advice on how the Council can encourage payment of the Oxford Living Wage through procurement.  The Council’s Monitoring Officer has provided the following response:

It is unlawful (or at least unenforceable) for one legal entity to seek to dictate the terms and conditions under which another legal entity employs its staff.  We can, however, in letting a contract to a supplier make it a contractual obligation that the staff engaged in the delivery of the service to the Council are paid in accordance with the Oxford Living Wage provisions.  We would not however be able to insist that the contractor’s entire work force are paid in this way.

The chief problem, I think, comes with the use of sub-contractors engaged by the principal contractor to deliver the service.  Here, with the much more indirect nature of the supply, all I think we reasonably do is seek to encourage the principal contractor to use sub-contractors who comply with the Oxford Living Wage requirements.  Should they fail to do so, I think that would be a consideration we could properly take into account in regard to any (for example) contract renewal.

The Review Group noted the legal advice and agreed to invite a legal services officer to a future meeting to further explore what more was possible in terms of encouraging and requiring contractors and subcontractors to pay the Oxford Living Wage and what the risks and constraints were.