Afternoon all,
is there anyone who can clear this up for me ? company 1 has an ‘o’ licence and allows company 2 to use their licence on a contract to operate under company 1s o licence , whilst company 1 maintains the insurance, vehicle hire agreement, legal side and maintenance etc. all company 2 does is provide the drivers and operates the contract and bills the company they do the work for. can someone please tell me if this is legal ?
Why would it not be? The main reason for the O license is to ensure that the vehicles are being run in a proper manner and run legally. Company 1 is fulfilling that obligation.
A bit of digging and you’d probably find out company 1 and 2 are actually linked in some way, i.e company 1 is the parent company of company 2.
I’ve recently finished doing work for a company like this which was the parent company, we’ll call them A. One job was sent to collect a vehicle from another company, B, to use for work at another depot for a parcel network for yet another company, C, who needed to put on an extra trunk and couldn’t because of the O license restrictions whilst they applied for an additional vehicle.
Turns out that company B who is a well known name is actually owned by company A and until I’d done this job I never knew they were as there is nothing at all which says they are. Company A are also the parent company of another pallet network company, D, which I would never have guessed without doing work for them.
Many thanks for the reply,
1 & 2 are not sister companies they are separate businesses. what is the legal side of who gets paid ? is it legal for company 2 to be paid although company 1 holds the O licence ? is there any legislation this as we are struggling to get anything in in writing to confirm this .