http://www.berr.gov.uk/files/file20761.pdfDont be put off by TUPE regulations it is part of life these days, particularly in the cleaning industry. Try to understand it more if you wish to progress in this business, take a consultation with an employment solicitor, you may have grounds for organisational reasons, again redundancy may be an issue, they may not have been employed for long so might not cost as much as you think.
If you have to take on the current staff, then you have to employ them on their current T&C's which the outgoing contractor has to provide you with. Often you can find that the current employees are illegals, so just asking for proof of ID (passport, check it is in date) and NI will see them out, other to that you can always work them out, make life difficult for them and they will soon seek employment elsewhere.
If you steer clear of TUPE then you will severly limit your options of further contracts