All about TUPE in Property Management
When it comes to property management, change is inevitable. Buildings change hands, management companies take over new contracts, and service providers come and go. But what happens to the employees who are already working in these properties? That’s where TUPE comes in.
The Transfer of Undertakings (Protection of Employment) Regulations, commonly known as TUPE, a crucial piece of UK employment law that ensures employees retain their jobs and terms of employment when a contract or business changes ownership. Understanding TUPE is essential for property managers, landlords, and service providers to ensure smooth transitions without disruption to the properties they manage. Let’s take a closer look.
What Does TUPE Entail?
TUPE is designed to protect employees when the organisation or service they work for changes hands. In property management, this typically applies when a management contract is transferred from one managing agent to another.
TUPE ensures that employees:
Retain their existing terms and conditions of employment.
Keep their continuity of service, meaning their length of employment remains intact.
Are transferred automatically to the new employer without the need for a new contract.
For property management companies, this means inheriting existing site-based staff, such as concierge teams and maintenance personnel, whenever a new contract begins. This ensures continuity of service and familiarity for residents, which can impact overall resident satisfaction.
When Does TUPE Apply in Property Management?
TUPE applies in property management when there is a transfer of an undertaking, which typically happens in the following scenarios:
Contractor Change: If a property management contract is transferred from one company to another (e.g., a landlord switches property management companies), TUPE may apply. Employees working on the contract may transfer to the new provider under the same terms.
In-Housing or Outsourcing: If a landlord or property owner decides to bring property management services in-house (previously outsourced) or outsources it to a new company, TUPE could apply to the affected staff.
Business Sale or Transfer: If a property management company (or part of it) is sold or transferred to a new owner, employees working for that business may be protected under TUPE.
Service Provision Changes: If property maintenance, security, or cleaning services are moved between service providers, TUPE might apply to employees primarily engaged in these services.
TUPE protects employees by ensuring their employment terms and rights transfer to the new employer. However, its application depends on whether employees are "assigned" to the specific work or contract being transferred.
A Step-by-Step Process
Successfully managing a TUPE transfer requires careful planning and execution. Here are the key stages:
Gathering Employee Information: The outgoing employer (current managing agent or service provider) must provide the incoming employer with key details about transferring employees. This includes their roles, salaries, employment contracts, and any ongoing grievances. This ensures transparency and allows the new employer to prepare adequately.
Informing and Consulting Employees: Employees must be formally informed about the transfer. If there are any planned changes, consultations with all employees must take place to discuss how these will affect them. This step helps maintain transparency, fostering trust, reassurance and clarity during the transition.
Executing the Transfer: On the transfer date, employees move over to the new employer. Their contracts remain unchanged, and they continue working as usual, just under new management. Continuous communication during this phase is vital to address any immediate issues and ensure a seamless transition. At POD, we ensure our teams are there in person on transfer day to assist our new team in any way we can.
Post-Transfer Integration: The new employer takes responsibility for integrating the staff into their company. This includes onboarding processes, introducing them to company policies, and ensuring they feel supported in their new working environment.
Why TUPE Matters in Property Management
To summarise, some of the key benefits of TUPE in property management include:
Continuity of Service: Residents don’t experience disruption, as the staff they are familiar with remain in place, maintaining their satisfaction and trust in the property's management.
Employee Protection: Staff are safeguarded from sudden job losses or contract changes that could negatively impact them.
Knowledge Retention: Experienced employees bring valuable knowledge about a property, its residents, and its specific requirements, which is crucial for maintaining consistent service quality.
POD Management: Experienced TUPE Experts
At POD Management, we've honed our expertise in navigating TUPE transfers across properties of all sizes. Our extensive experience means we've encountered many scenarios and adeptly managed a vast range of buildings, always prioritising the well-being of the teams involved, while ensuring a seamless experience for residents and staff alike.
We believe that the heart of excellent property management lies in its people. Our teams are truly the lifeblood of our business, so when a TUPE transfer brings new team members to POD, we don't just see it as a legal process; we see it as an opportunity to welcome skilled, knowledgeable individuals into the expanding POD family.
We know that transitioning to a new employer can be daunting for employees, so we focus on making the process as smooth and positive as possible. Here’s how we do it:
Personalised Onboarding: We take the time to introduce new team members to POD’s values, systems, and expectations, ensuring they feel welcomed and valued from day one.
Ongoing Support: We provide additional training, development opportunities, and an open-door policy to ensure every team member feels supported and able to excel in their role.
Clear Communication: By fostering an environment where feedback is encouraged, we ensure that all team members feel heard and appreciated. We prioritise transparency, keeping all staff informed about changes, expectations, and opportunities within the company.
Considering A Change?
TUPE plays a critical role in ensuring smooth transitions in property management. It protects employees, maintains service quality, and allows for seamless changes when new management companies or service providers take over.
If you’re considering switching managing agent, it’s important that you partner with a property management company who have clear TUPE processes in place to assist in the smooth running of your property. At POD Management, our expertise and experience mean that your transition will be straight-forward, positive, and lead by an expert team. You can count on POD every step of the way:
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Email us at relationships@podmanagement.co.uk
Call us on 0333 577 6656
We look forward to hearing from you!