TivloYou have won a new contract. Forty-five thousand pounds a year, a large logistics warehouse on the edge of town, five days a week. You are pleased with the rate and the site visits went well.
Then the outgoing cleaning company gets in touch. They have six operatives on that site. Under TUPE, they say, those staff transfer to you.
If you knew this was coming, you are prepared. If this is the first time you have heard it, the next few weeks are going to be complicated.
TUPE (the Transfer of Undertakings (Protection of Employment) Regulations) applies regularly in commercial cleaning. Understanding how it works, and what your obligations are on both sides of a contract change, is a basic requirement for operating professionally in this sector.
What TUPE Actually Does
TUPE protects employees when a business, or part of a business, changes hands. In commercial cleaning, this most commonly occurs during a service provision change: when a client switches from one cleaning company to another, the operatives regularly assigned to that contract may transfer to the new contractor.
This means: their contracts of employment transfer with them. Their terms and conditions, pay rates, holiday entitlement, length of service and other employment rights come with them. You cannot simply offer them new terms. In most cases, you cannot change their terms to match your standard contracts unless they agree, and the justification for any changes must be entirely unrelated to the transfer itself.
TUPE applies automatically. It does not require either party to agree to it. If the conditions are met, it applies.
When Does TUPE Apply in Cleaning?
The key test in a service provision change is whether the same activities are being carried out and whether there is an organised grouping of employees whose principal purpose is carrying out those activities.
In practice, this means: if you are taking over a contract and the outgoing company had operatives dedicated primarily to that site (not just occasionally visiting), TUPE almost certainly applies.
If the contract is small and the operatives worked across many different sites, the position can be less clear. This is where employment law advice is worth paying for if you are unsure.
What You Need to Do When Winning a Contract
Request employee information early
As soon as a contract is awarded, contact the outgoing company and request employee liability information. They have a legal obligation to provide this at least 28 days before the transfer date, though in practice you want it as early as possible.
This information should include: the names and ages of the transferring employees, their employment start dates, their current terms and conditions (pay, hours, holiday entitlement, any contractual benefits), any pending or active disciplinary or grievance matters and any collective agreements in place.
Do not accept vague or incomplete information. If you do not know what you are inheriting, you cannot plan for it.
Inform and consult
TUPE requires the incoming employer to consult with the transferring employees (or their representatives) before the transfer. You must provide information about the transfer, any measures you intend to take that will affect the employees, and give them a chance to respond.
"Measures" includes any changes to working patterns, location, supervision, or terms you are planning. If there are no measures planned, you still need to go through the information and consultation process.
Budget for inherited entitlements
The transferring employees bring their employment history with them. An operative who has been cleaning that site for seven years has seven years of continuous service. Their statutory redundancy entitlement, their notice period, their holiday rights are all based on total continuous service, not on their tenure with you.
When pricing a newly won contract, factor in the cost of the inherited workforce: their actual pay rates, any enhanced contractual benefits and the risk profile of taking on staff with long service.
What You Need to Do When Losing a Contract
Provide complete employee liability information
When you are the outgoing contractor, you have a legal obligation to provide accurate employee liability information to the incoming company. Failing to do this, or providing it late, can expose you to liability.
Communicate clearly with your staff
Your employees who are transferring have a right to know what is happening. Inform them of the transfer, when it is taking place, who the incoming contractor is and what (if anything) will change for them on the transfer date.
Do not leave this until the last week. Staff who feel informed and respected during a transfer are more likely to remain engaged in the remaining period and less likely to raise issues.
Handle the exit cleanly
Return any materials, access cards, site information, COSHH data sheets, or equipment that belong to the client or that the incoming contractor will need. Handover documentation is not a legal requirement in most cases but it is the professional standard and it protects you from being accused of making the transition difficult.
Common TUPE Mistakes in Cleaning
Assuming it does not apply because the contract is small. Size does not determine whether TUPE applies. The question is whether there is an organised grouping of employees whose principal purpose is that contract.
Trying to impose new terms immediately. The new contractor's standard contract does not automatically replace inherited terms. Trying to impose it immediately is likely to be unlawful.
Ignoring the consultation requirement. Many smaller cleaning companies skip this step, either because they do not know it is required or because it feels like a formality. If something goes wrong, the absence of proper consultation can be costly.
Failing to get proper advice. TUPE is not complicated at a high level but the details matter and the financial exposure from getting it wrong can be significant. Employment law advice at contract handover is worth the cost.
Documentation Makes It Manageable
The practical reality of TUPE is that it is much more manageable for cleaning companies that already maintain clear records of their employees' terms, rotas, site assignments and hours.
If you have proper records, providing employee liability information is straightforward. If you are working from a mix of paper contracts and informal arrangements, producing accurate TUPE information under time pressure is stressful and error-prone.
If you are not sure how your business would score on compliance and contract management, take the Tivlo scorecard. It is free, takes four minutes, and gives you an honest picture across five key areas.
Take the Tivlo Cleaning Business Scorecard →
This article provides general information only and is not legal advice. For TUPE obligations specific to your situation, speak with a qualified employment solicitor.