Transferring a security contract from one provider to another is one of the most legally complex moments in the UK security industry. When a client moves their guarding contract — whether due to cost, service dissatisfaction, or competitive tender — the outgoing and incoming contractors both face obligations under the Transfer of Undertakings (Protection of Employment) Regulations 2006, commonly known as TUPE.
Getting TUPE wrong can result in costly employment tribunals, reputational damage, and the loss of future contract opportunities. This guide explains what TUPE means for UK security companies, what you must do as either the outgoing or incoming contractor, and how good workforce management practices can reduce your risk.
What Is TUPE and Why Does It Apply to Security Contracts?
TUPE is a piece of UK employment law that protects employees when the business or activity they work for changes hands. In simple terms, when a security contract transfers from one company to another and the same guards continue doing the same work at the same site, those guards usually have the right to transfer to the new employer on their existing terms and conditions.
The legislation applies in two main scenarios:
- Business transfers — where an entire business or part of a business changes ownership.
- Service provision changes (SPC) — where a service contract is awarded to a new contractor, or brought back in-house. This is the most common TUPE scenario in the security sector.
For TUPE’s service provision change rules to apply, three conditions must be met: there must be an organised grouping of employees dedicated primarily to the contract, the activities must be fundamentally the same after the transfer, and the activities must not consist wholly of purchasing goods for someone else’s use.
In practice, this means that site-based guarding contracts — where specific officers are assigned to a single client site — almost always attract TUPE protection. Mobile patrol and keyholding operations can also be subject to TUPE, though the analysis is more fact-dependent.
Obligations of the Outgoing Contractor
If you are losing a security contract, your obligations under TUPE do not end the moment the contract is awarded to a competitor. You have important duties to fulfil during the handover period.
Provide Employee Liability Information (ELI)
You must provide the incoming contractor with written Employee Liability Information (ELI) no later than 28 days before the transfer date. This must include, for each transferring employee:
- Name and age
- Details of their written employment terms
- Details of any disciplinary action or grievances raised in the past two years
- Details of any court or employment tribunal cases in the past two years, or any cases the employer has reasonable grounds to believe are pending
- Details of any collective agreements that will transfer
Failure to provide accurate ELI on time can result in the outgoing contractor being required to pay compensation to the incoming contractor — currently a minimum of £500 per employee unless a tribunal determines a higher figure is just and equitable.
Inform and Consult Employees
You must inform and, where any measures are envisaged, consult with employee representatives (trade union representatives or elected representatives) about the transfer. Employees must be told: that the transfer is going to happen and when, the legal, economic, and social implications for them, and any measures the incoming employer intends to take in relation to them.
Consultation must be meaningful — not merely informing employees of a fait accompli. Failure to inform or consult can lead to an employment tribunal award of up to 13 weeks’ pay per affected employee.
Obligations of the Incoming Contractor
Winning a security contract through competitive tender can quickly turn costly if TUPE obligations are underestimated in the pricing process.
Inherit Employees on Existing Terms
Once the transfer occurs, the transferring employees become your employees, and you inherit all of their existing contractual terms and conditions — including pay, hours, holiday entitlement, length of service, and any contractual benefits. You cannot lawfully harmonise their terms to match your existing workforce immediately after the transfer, unless the employees agree and there is an economic, technical, or organisational (ETO) reason entailing changes to the workforce.
This means that if the guards transferring in are on higher pay rates than your existing staff, you must honour those rates. This is why thorough due diligence on transferring employees’ terms — using the ELI — is essential to accurate contract pricing.
Redundancy and Dismissal Risks
Any dismissal connected with the TUPE transfer is automatically unfair unless there is an ETO reason. Making transferring staff redundant immediately after a transfer is extremely high-risk unless there is a genuine change in the workforce’s size or structure. Security companies that win contracts and then dismiss the inherited workforce without an ETO reason routinely face successful unfair dismissal claims.
Managing the Handover Operationally
Beyond the legal obligations, a smooth TUPE transfer also requires careful operational planning. The weeks leading up to a handover are often stressful — for guards, for the outgoing operator, and for the incoming one. Good communication and clear documentation are critical.
Key operational steps for the incoming contractor include:
- Reviewing the SIA licence status of every transferring officer using the SIA Public Register before they appear on your contract
- Confirming that their licence type matches the site’s requirements (e.g. door supervisor vs. security guard licence)
- Briefing transferring staff on your company’s procedures, reporting requirements, and uniform standards
- Ensuring all transferring staff are enrolled in your scheduling and communication systems before day one
- Establishing a site-specific assignment instruction with the client before the handover date
How Technology Helps With TUPE Compliance
One of the most practical challenges during a TUPE transfer is managing a sudden influx of guards into your operation — often on short notice. Guard management software can significantly reduce the administrative burden and compliance risk.
TacDesk’s guard management platform allows incoming contractors to:
- Verify the SIA licence status of transferring staff directly via the SIA Public Register sync — no manual checking required
- Onboard transferring guards quickly, capturing their employment details, licence information, and emergency contacts in a single place
- Assign transferring staff to shifts immediately and confirm attendance via GPS clock-in
- Generate the documentation required for client handover reports and ACS compliance purposes
For outgoing contractors, TacDesk makes it straightforward to compile the Employee Liability Information and licence data needed for the incoming contractor, reducing the risk of ELI disputes and last-minute scrambles.
Frequently Asked Questions
Does TUPE always apply when a security contract changes hands?
Not always, but it applies in the majority of site-based guarding situations. The key question is whether there is an organised grouping of employees dedicated primarily to the contract being transferred. Where officers cover multiple sites and are not principally assigned to the contract changing hands, TUPE may not apply — but this is fact-specific and legal advice is recommended.
What happens if the outgoing contractor refuses to provide ELI?
If the outgoing contractor fails to provide Employee Liability Information on time or provides inaccurate information, the incoming contractor can bring a claim against them in the employment tribunal. The minimum award is £500 per employee, with no upper limit if the tribunal considers a higher amount appropriate.
Can I change the pay rates of transferred guards after the TUPE transfer?
Not immediately, and not without consent and an ETO reason. Terms and conditions transferred under TUPE are protected. Any harmonisation of pay rates should be discussed with an employment solicitor before implementation.
How far in advance should I plan for a TUPE transfer?
As early as possible. Many security companies build TUPE readiness into their bid process — identifying likely transferring employees, estimating inherited costs, and planning onboarding during the mobilisation period. The 28-day ELI deadline means you may have limited time once a contract decision is confirmed.
Summary
TUPE transfers are a routine feature of UK security contract life, but they carry real legal and financial risk for both outgoing and incoming contractors. Understanding your obligations — from providing timely Employee Liability Information to honouring inherited terms — is essential for any security company that wins or loses contracts through competitive tender.
Preparation, documentation, and the right technology to manage guard records and SIA compliance can make the difference between a smooth handover and a costly employment dispute.
Ready to streamline your guard management and TUPE readiness? See how TacDesk helps UK security companies stay compliant — from SIA licence verification to GPS-verified attendance records.