TUPE: Service Provision Change
In this case, C T Plus (Yorkshire) CIC v Stagecoach, the Employment Appeal Tribunal considered whether there was a TUPE transfer when a Council-tendered “Park and Ride” service closed after a competitor set up at the site. The Employment Appeal Tribunal held that there wasn’t a service provision change (“SPC”).
The Appellant bus company contracted with Hull City Council, to provide a Park and Ride service, subsidised by the Council. However, Stagecoach set up on its own in competition, which led to the Council cancelling its contract with the Appellant from the day that the Stagecoach service started. An Employment Tribunal rejected the contention that there was an SPC and hence a TUPE transfer of staff to Stagecoach when the Appellant ceased operations. The Employment Appeal Tribunal upheld the decision.
The Employment Appeal Tribunal said that there should be a “common sense and pragmatic” approach to the SPC Regulations. Here, Stagecoach was carrying out a service as a commercial venture on its own behalf, not on behalf of the Council as a “client”. Therefore, there was no SPC under TUPE regulation at 3(1)(b).