Cleaners employed by Southampton City Council could see their jobs privatised in a bid to help save £100,000 a year.
The cash-strapped authority is drawing up proposals to recruit an outside contractor to provide cleaning services at the civic centre.
But the council says cleaners will transfer to the new supplier if the change is made.
The Transfer of Undertakings (Protection of Employment) aims to safeguard employees when a business, or a part of a business, is taken on by a new owner or merges with another company.
But TUPE also applies when activities are outsourced to a contractor, or when they are moved from one contractor to another.
A council spokesperson said: "The outsourcing of cleaning provision is being considered as a part of wider budget activity.
"This forms part of a range of proposals looking at cleaning efficiencies which will save £100k per annum.
"Any affected staff will be TUPED across to the new supplier, ensuring they will have continuity of employment and their rights will be protected under TUPE regulations."
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The council has not said how many employees would be involved in any transfer.
Royston Smith, Tory MP for Southampton Itchen, said: "The council has a duty to demonstrate value for money to the taxpayer.
"If the service provided by the private sector is of at least the same quality whilst delivering a cost saving, I think it makes complete sense to outsource.
"Part of the mess the council are in is their obsession with running everything in-house."
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As reported in the Daily Echo, the Labour-run authority has embarked on a major cost-cutting drive in a bid to balance the books.
In common with other councils, it has been hit by rising inflation, soaring energy costs, and increasing demand for services.
A report to a recent cabinet meeting said urgent work was taking place to tackle the challenges faced.
It forecast a £13.7m overspend in the current financial year and warned that the authority was also at risk of failing to balance its budget in 2024/25.
The council has said it could be forced to issue a section 114 notice, which would prohibit all but essential spending.
Jonathan Carr-West, chief executive of the Local Government Information Unit, which supports councillors and council officers, said: "One in ten councils are at risk of effective bankruptcy.
"This represents a tragedy for millions of citizens who see the services they rely on at risk."
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