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ARTICLE · 13 SEPTEMBER 2016

On The Buses…

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The case of CT PLUS CIC v. Black and ors looked at whether a change in bus service from subsidised to commercial venture could be a SPC within the scope of the TUPE 2006.

United KingdomEmployment and HR

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

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