Effectively managing a transfer of undertaking (TOU) involves thorough planning, consideration, and communication to ensure a smooth and compliant transition. At PPCS, we approach both tendered contracts and secured proposals with a structured TOU process that prioritises legal and human factors – particularly if an existing provider already has on-site staff. This assures a seamless handover, every time. Here are the six key steps we follow:
1. Initiating the transition
The first step involves engaging with the incumbent provider to initiate the TOU process. Open and transparent communication with all stakeholders is vital to foster trust from the outset. During this stage, we collect critical staff details, such as:
- Election forms
- Employee details (start date, rate, hours, roster)
- Individual employment agreements Union memberships
- Other necessary information
This upfront groundwork ensures we have accurate data and that all employee rights are preserved during the transition. This is crucial to maintaining job security – a top priority for many employees, particularly vulnerable workers.
2. Individualised Employee Information
At PPCS, we have a dedicated National Payroll and HR Coordinator who collaborates with the incumbent provider to gather key employee data, including:
- Employee records
- Information about an employee that the employer is required to keep under legislation, such as employment agreements, wages and time records, holiday and leave record, tax code declaration, KiwiSaver information, and student loan and child support deductions
- Records of any disciplinary or grievance matters
Completing thorough due diligence at this stage ensures we understand all legal obligations clearly and have transparency across crucial employee data. Employees will transfer over with the same terms and conditions.
3. Ministry of Justice and compliance checks
All transferring employees undergo a Ministry of Justice (MOJ) background check. This step guarantees alignment with both PPCS compliance standards and any additional requirements of our clients. As a leading commercial cleaning and facilities service company, we promise our clients compliance and take an innovative and dynamic approach to ensure our procedures adhere to the very highest standards. We achieve this by exploring and harnessing new technologies that can assist with visibility and accountability, ultimately facilitating a more proactive approach to compliance.
4. Onboarding and induction
Onboarding is a crucial phase in the TOU process. With PPCS, this includes:
- Reading the onboarding pack with all relevant documents (eg Employee Handbook, Company rules)
- Reviewing the online Induction videos(PPCS General Induction and H&S), followed up with a short quiz to test understanding of knowledge. Issuing new uniforms and ID cards
- Providing tailored training to meet site-specific requirements (Site induction and CTR – Cleaner Training Record)
- Introducing employees to PPCS’ culture, service standards, and expectations
This stage is critical for maintaining employee morale and ensuring they feel well-integrated into the new structure. Staff benefit from health and safety training, management support, and compliance education, ensuring they are well-prepared to deliver to the standards required.
5. Staff support and development
Supporting the wellbeing of transferred employees is a priority.. To establish this, we:
- Allow employees to retain accrued leave balances and employment benefits
- Offer ongoing training, clear career pathways, and Individual Development Plans (IDPs)
- Focus on staff satisfaction, retention, and long-term engagement
- Display an ongoing commitment to diversity and inclusion at every level of our organisation
By establishing solid support systems and prioritising strategies such as ongoing training programs – which are shown to result in 34% higher retention rates – we foster a motivated and committed workforce with access to future growth opportunities and pathways for advancement.
6. Contingency planning and recruitment
We implement a proactive recruitment campaign to protect against disruption to clients should employees not wish to transfer. This involves:
- Local outreach efforts through our extensive network to attract suitable candidates
- Flexible interview schedules to attract potential hires
These measures ensure your site remains fully staffed with uninterrupted service delivery throughout the transition.
Compliance, satisfaction, and uninterrupted delivery
Correctly managing a Transfer of Undertaking is crucial in successfully transitioning service providers. At PPCS, we have the necessary experience, skill and knowledge to manage a TOU that achieves ongoing employee satisfaction, compliance, and seamless service delivery.
Seeking a seamless shift? Talk to New Zealand’s leading commercial cleaning and facilities solutions provider, PPCS, today.
