Source · Select Committees · Transport Committee
Recommendation 22
22
Acknowledged
Bus franchising reforms must embed stronger employment practices for workers
Conclusion
The Government’s franchising reforms offer a clear opportunity to embed stronger and fairer employment practices across the sector. Better pay, fair progression, and stable conditions are not only essential for retaining drivers but are also critical to maintaining reliable and high-quality bus services. Without addressing these workforce issues, the wider goals of reform risk being undermined. (Conclusion, Paragraph 81)
Government Response Summary
The government states that robust legislation (TUPE) already safeguards employees during franchising transitions and that franchising authorities can already include expectations for staff pay and conditions in contracts. Updated franchising guidance will address contractual matters following consultation.
Government Response
Acknowledged
HM Government
Acknowledged
There is already robust legislation in place to safeguard employees during the transition to franchising. The Transfer of Undertakings (Protection of Employment) Regulations 2006 (TUPE) apply to employees of businesses across the United Kingdom. Under Section 123X of the Transport Act 2000, TUPE is expressly applied to staff transfers arising from the introduction or transfer of a bus franchise. This ensures protections for employees who are “principally connected” to the services being franchised. Ultimately, it is the franchising authority that carries the financial risk and sets the contractual terms with operators. As in London, these contracts can include expectations around staff pay and conditions. The Department’s franchising guidance – which also covers procurement and contractual matters - will be updated following Royal Assent of the Bus Services (No.2) Bill, with consultation involving stakeholders including trade unions, operators, and local authorities.