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UKSolicitorJA
UKSolicitorJA, Solicitor
Category: UK Employment Law
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Does TUPE apply to a Licence agreement which is on 6 months

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Does TUPE apply to a Licence agreement which is on 6 months notice. The Landlord argues that the agreement creates a Landlord and tenant relationship and does not constitute a service provision and therefore TUPE does not apply. Is this correct?
-Could you explain your situation a little more?
Customer: replied 3 years ago.


Our childcare business operates from a school building and we have a licence agreement which can be terminated on 6months notice. The school have given notice to terminate our lease. They intend to run the same provision themselves but have not offered to buy the business as they argue that they are not taking over our business, they are just not renewing our lease. In reality there is nowhere else for us to move to so the business will cease to exist and they will pick up all of our customers. After initially telling staff that TUPE applied, they have now stated that it doesn't as the Licence agreement creates a landlord/tenant relationship and does not constitute a service provision. Are they correct?

In my opinion, TUPE applies as the landlord school wishes to operate the same business as yours from the building so there is a business transfer (economic activity) which is linked to the property.

Obviously the tribunal/courts would have the final say and you would need to file a claim in the employment tribunal if you disagree with the landlord.

Hope this helps
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