Under paragraph 22(1) of Schedule 5B to and section 126(1) and (4) of, the National Health Service Act 1977 (1977 c. 49), as amended by sections 6(1), (2) and Schedule 4 of the National Health Service Reform and Health Care Professions Act 2002 (2002 c. 17), the National Assembly for Wales has the power to transfer to a Local Health Board by order any specified description of employees of any Health Authority or National Health Service trust in Wales.

The Order transfers (article 3) the staff of the five Welsh Health Authorities established by the Health Authorities (Wales) Establishment Order 1996 (S.I. 1996/146), excluding those staff transferred under the Health Authorities (Transfer of Functions, Staff, Property, Right and Liabilities and Abolition) (Wales) Order 2003 (S.I. 2003/813, (W.98)), to the Local Health Boards established by the Local Health Boards (Establishment) (Wales) Order 2003 (S.I. 2003/148, (W.18)). The Order also transfers (article 4) the staff from the Powys Health Care National Health Service Trust established by the Powys Health Care National Health Service Trust (Establishment) Order 1992 (S.I. 1992/2741) to the Powys Local Health Board. If any staff who transfer to Local Health Boards under articles 3 or 4 have their posts declared redundant during the period of twelve months following the transfer date, they will transfer (article 5) to the Extended Employment Scheme which will attempt to place them with another health service employer or the National Assembly for Wales.

In accordance with the requirements in paragraph 22(3) of Schedule 5B this Order is made following compliance with any prescribed requirements about consultation in relation to each of the employees transferred. The provisions in paragraphs 23, 24 and 25 of Schedule 5B, in so far as they are relevant, apply to the employees transferred under this Order.