The case of CT PLUS (Yorkshire) CIC v. Black and ors looked at
whether a change in bus service from subsidised to commercial
venture could be a "service provision change" (SPC)
within the scope of the Transfer of Undertakings (Protection of
Employment) Regulations 2006 (TUPE). The EAT held that it was not
an SPC as the new provider did not provide the service "on the
Council's behalf", as required under TUPE.
CT PLUS (Yorkshire) CIC (CTP), ran a subsidised park-and-ride
bus service in Hull under a contract with the Council. Lincolnshire
Road Car Ltd T/A Stagecoach (LRC) decided to run its own
unsubsidised service on the same route. As the Council was not
required to run a subsidised service in competition, the Council
ended the contract with CTP. LRC used its own buses, took nothing
from CTP and had no contract with the Council. LRC disagreed that
TUPE obliged it to take on CTP's drivers. LRC believed there
was no transfer. The EAT had to decide who should compensate the
stranded CTP employees.
An employment tribunal judge reviewed the matter. He held LRC
was running the service in its own interest and there was no SPC.
He held LRC did not carry out the activities for the Council
("on the client's behalf") as TUPE requires. On
appeal the EAT agreed with the employment tribunal judge that TUPE
did not apply. The EAT did not feel the Council remained the
"client" as LRC was running it as a commercial venture
and ignored reservations raised by the Council (for example, in
relation to changes to running times). These were important
considerations for deciding whether there was a "client"
for the purposes of TUPE or simply an "interested
bystander", as held here.
Dentons is the world's first polycentric global law firm. A
top 20 firm on the Acritas 2015 Global Elite Brand Index, the Firm
is committed to challenging the status quo in delivering consistent
and uncompromising quality and value in new and inventive ways.
Driven to provide clients a competitive edge, and connected to the
communities where its clients want to do business, Dentons knows
that understanding local cultures is crucial to successfully
completing a deal, resolving a dispute or solving a business
challenge. Now the world's largest law firm, Dentons'
global team builds agile, tailored solutions to meet the local,
national and global needs of private and public clients of any size
in more than 125 locations serving 50-plus countries.
The content of this article is intended to provide a general
guide to the subject matter. Specialist advice should be sought
about your specific circumstances.
To print this article, all you need is to be registered on Mondaq.com.
Click to Login as an existing user or Register so you can print this article.
The employment landscape is one that is constantly shifting. Employers who fail to keep up with the changes do so at their peril.
We are pleased to invite you to this seminar, designed to help in-house counsel and HR practitioners get to grips with key recent and forthcoming developments in employment, pensions and immigration law and practice and what they mean for your workforce.
The event is going to take place on 26 April 2017 and is addressed to participants of the Berlin Real Estate sector, in particular those dealing with redensification such as investors, developers, brokers, urban housing associations and engineers.
The Court of Appeal has held that where a contract of employment lacks a provision for when notice of termination takes effect, it is effective from when the employee personally takes delivery of the letter containing notice.
Register for Access and our Free Biweekly Alert for
This service is completely free. Access 250,000 archived articles from 100+ countries and get a personalised email twice a week covering developments (and yes, our lawyers like to think you’ve read our Disclaimer).