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Main legal points A new limited company will have its
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own legal identity. It will employ its own staff and will be responsible for its own accounting procedures.
It will also be responsible for dealing with regulatory issues, including applying to its local Traffic Area Office for its own 0-licence.
However, if an operator acts as the parent company for his associated companies he can apply bra group 0-licence, which means all associated companies can use his vehicles.
TOPE regulations come into play if an operator intends to transfer employees from the parent company to an associated company. Terms and conditions of employees' contracts must stay the same— if they are altered an employee can make a claim for constructive dismissal.
Union recognition: Even if associated companies employ fewer than 20 people—the minimum amount required to comply with union recognition—trade unions can still insist an existing recognition policies remaining in place. If they don't, a claim for statutory recognition can be made.