What Are the Implications of TUPE When Changing Cleaning Contractor?

If you have ever changed a service provider, you may have heard them talk about TUPE. If you’re a business owner taking over a contract from another service provider, then you’ll no doubt have looked into the legalities of TUPE. But for those who haven’t heard of the term, it is the Transfer of Undertaking (Protection of Employment) Regulations 2006. In a nutshell, this is a UK employment law designed to protect employees when a service or business is transferred from one company to another. TUPE is highly relevant in the cleaning industry as it means that existing cleaning staff have the right to transfer to the new provider and their current terms and conditions will remain the same.

As a service provider, Brightr are well versed in TUPE regulations, so we have put together a guide exploring the implications and responsibilities of the transition process.

TUPE in the Cleaning Industry

TUPE regulations apply when a contract for outsourced services like cleaning are taken over by a new contractor or provider. It makes sure that employees assigned to that contract keep their employment rights, which prevents unfair dismissal and/or exploitation due to changes in contract.

In cleaning contracts TUPE will apply when:

  • A Client switches cleaning service providers.
  • The cleaning contract is brought in-house or outsourced to another company.
  • The cleaning company sells its business, or part of it, to another provider.

Whether TUPE applies in your situation could be down to a case-by-case assessment, but in most cleaning contract transitions TUPE will be relevant.

Responsibilities

Both the outgoing and incoming cleaning contractors have legal responsibilities under TUPE regulations.

The outgoing provider must:

  • Provide employee liability information to the new provider at leas 28 days before transfer.
  • Notify affected employees and if necessary, trade unions or employee reps.
  • Not dismiss employees due to the transfer, except for economic, technical, or organisational reasons.

The incoming provider must:

  • Take on transferring employees under the same terms and conditions of their current contract.
  • Not immediately change terms and conditions (these remain protected by TUPE).
  • Conduct due diligence on employee liabilities (pensions, ongoing disputes, accrued holiday entitlement etc).

Legal and HR Requirements

TUPE regulations can seem complicated and can be complex to navigate, so it’s important that business owners know the legalities, whether they are the incoming or outgoing provider. Failing to comply with TUPE could result in legal claims and financial penalties. Here are the key legal and HR factors to consider.

Employee Consultation – Employee representatives (like trade unions) must be consulted about the transfer and any potential changes. A lack of proper consultation can lead to claims for protective awards which could be financially and professionally damaging.

Changes to Terms and Conditions – Any post transfer changes to employees’ terms must be legal and justified. Employers must demonstrate ETO reasons if they wish to renegotiate terms, such as a genuine restructuring or relocation need.

Redundancies and Dismissals – If redundancies are necessary, the incoming provider must follow fair redundancy procedures. Dismissing employees because of TUPE is illegal and could lead to claims for unfair dismissal.

Practical Steps for a Smooth Cleaning Contract Transition

If you are an incoming cleaning service provider, there are things you can do to minimise disruption and legal risks:

Conduct a TUPE Assessment – Determine whether TUPE applies to the transfer and review the contract terms with the current cleaning provider.

Request Employee Liability Information (ELI) – Ensure the outgoing provider passes on accurate information on transferring employees, including the number of employees transferring and their salary details, contracts, and benefits, and any ongoing disciplinary or grievance matters.

Open Communication with Employees – Engage with affected employees early to address any concerns they may have and to provide reassurance. Make sure employees understand their rights, obligations, and any changes in management.

Ensure Compliance with Legal Obligations – Work with HR and legal advisors to ensure the transition meets TUPE requirements. If you’re considering restructuring, ensure any changes stay in line with ETO reasons.

Maintain Service Continuity – Integrate staff seamlessly to prevent service disruptions. Monitor performance and address any teething issues with the transition as soon as possible.

Here at Brightr, we understand that a change in contractor must lead to an improvement in cleaning service standards. A fundamental part of our TUPE transition process is to assess and enhance the performance of our transferred staff. We can provide training when necessary, and upskilling programs help our cleaners to maintain our high standards of service.

When you choose us as your Contract Cleaning Company, you will receive a seamless, legally compliant transition with minimal operations impact, and enhanced cleaning performance.

With Offices in Northampton and Milton Keynes we cover Northamptonshire, Bedfordshire, Buckinghamshire and Warwickshire. We have over 200 employees and we work across the whole spectrum of sites, such as distribution and fulfilment centres, schools and colleges, car dealerships, medical centres and manufacturing plants.

Meeting a customer’s expectations, from the cleaning specification through to compliance and site security, will depend on a well-trained and supervised team of cleaners, all of which we provide.

Get in touch with us today if we can help you with your commercial cleaning needs. Either call the office on 01604 55 66 77 or get a quote here.

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