Dartford Borough Council has become the first UK council to fully outsource its entire HR and payroll function enabling it to meet government efficiency targets.
By outsourcing the process, the council will save an estimated £50,000 per year.
The first payroll run for the council's 400 employees is scheduled for April. All other HR functions including recruitment, absence management and employee retention have been outsourced to Northgate HR since October 2007.
Steve Brooks, head of finance and resources at Dartford Borough Council, said: "By outsourcing all HR and payroll we're able to take advantage of Northgate HR's expertise and vast experience in the area. We started to review our options to provide a better HR service to our internal customers."