Search

How can we help?

Icon

No TUPE where activities provided for own commercial gain and not for the client

The EAT has held that TUPE does not apply where a new provider ceases to carry out services “on the client’s behalf.”

CTP Ltd operated a subsidised park-and-ride bus service under a contract with the local council.  A private travel company, LRC Ltd, then decided to run its own unsubsidised service on the same route. As the council was not allowed to run a subsidised service in competition with a commercial service, it terminated its contract with CTP.

Although the bus route was the same, LRC provided its own buses, did not take any assets from CTP and received no council subsidy. LRC did liaise with the council over bus timetabling but decided to reduce the frequency of the service despite the council’s objections.

 

The EAT has held that TUPE does not apply where a new provider ceases to carry out services “on the client’s behalf.”

CTP claimed that its drivers should TUPE transfer to LRC and the tribunal was asked to decide if there had been a service provision change. The tribunal found that although the “activities” were the same, they were no longer carried out “on the client’s behalf”. LRC was operating the service for its own commercial gain and the council was now no more than an “interested bystander”. The EAT agreed, the council was no longer the client and, as such, TUPE did not apply.

There have been a line of cases in recent years addressing the question of ‘who is the client’ in a TUPE context.  This case, once again, reiterates that this is a question of fact for the Tribunal and that benefitting from a service does not, necessarily, make you the client for the purposes of TUPE.

For factsheets, checklists and letters on TUPE, please visit employmentbuddy.com 

Disclaimer

This information is for guidance purposes only and should not be regarded as a substitute for taking legal advice. Please refer to the full General Notices on our website.

Author profile

Monica Atwal

Managing Partner

View profile

+44 118 960 4605

About this article

Read, listen and watch our latest insights

art
  • 10 September 2025
  • Commercial Real Estate

Trouble at the Table: The Challenges Facing the UK Hospitality Sector in the run up to Christmas 2025

The UK hospitality sector, long celebrated for its vibrancy and resilience, is facing a perfect storm of economic, operational, and structural challenges in 2025.

art
  • 09 September 2025
  • Commercial Real Estate

Le bail commercial anglais: quelques points essentiels à considérer

Typiquement, les baux commerciaux en Angleterre sont de court terme, d’une durée de 5 ou 10 ans, avec un loyer de marché et des ajustements du loyer périodiques en fonction de l’inflation ou d’autres facteurs. 

art
  • 09 September 2025
  • Corporate and M&A

The Failure to Prevent Fraud Offence – be prepared to avoid criminal liability

The failure to prevent fraud offence is a new corporate offence which has come into force on 1 September 2025.

art
  • 08 September 2025
  • Employment

Can employers still make changes to contracts after the Employment Rights Bill?

The short answer is yes but it will be much more difficult for employers following the introduction of the Employment Rights Bill because their ability to fairly dismiss employees who do not agree contractual changes is being restricted. 

art
  • 05 September 2025
  • Privacy and Data Protection

When Ignoring a DSAR Becomes a Criminal Offence

On 3 September 2025, Mr Jason Blake appeared at Beverley Magistrates Court and was fined for failing to respond to a data subject access request (DSAR).

art
  • 04 September 2025
  • Commercial Real Estate

Under the Hammer: essential tips for property auctions

This article explores the key considerations to keep in mind when selling or purchasing a property at auction.