Bus and Coach Operations
The law governing passenger vehicle operation is similar in some respects to that applied to goods vehicles. However, there are many other seperate rules and guidelines covering subjects such as passenger behaviour, disabled access, voluntary groups and permit operations to name but a few.
This section deals specifically with passenger transport operations and although there is some overlap on items such as EC drivers hours, the main requirements can be found within the various pages in this section and where indicated you'll find further information within the Transports Friend website.
Throughout this section, you may come across terms which appear frequently, the definition of these terms are as follows;
- Bus - a passenger carrying vehicle which is constructed or adapted to carry more than eight seated passengers
- Coach - a passenger carrying vehicle (or large bus) which has a maximum gross weight exceeding 7.5 tonnes and a speed which exceeds 60 mph
- Minibus - a passenger carrying vehicle which is constructed or adapated to carry more than eight passengers (but not more than 16 passengers) excluding the driver
- Permit - means a permit granted under section 19 in relation to the use of a bus for carrying passengers for hire or reward
- Community Bus Permit - means a permit granted under section 22 in relation to the use of a public service vehicle
- Hire and Reward (see below)
Hire and Reward - Definition
The legal definition of hire or reward is very wide and it is easy to fall within it accidentally The legislation states that:
- a vehicle is to be treated as carrying passengers for hire or reward if payment is made for, or for matters which include, the carrying of passengers, irrespective of the person to whom payment is made and in the case of a transaction effected by or on behalf of a member of any association of persons (whether incorporated or not) on the one hand and the association or another member thereof on the other hand notwithstanding any rule of law as to such transactions;
- a payment made for the carrying of a passenger shall be treated as a fare, despite the fact that it is made in consideration of other matters in addition to the journey and irrespective of the persons by or to whom it is made;
- a payment shall be treated as being made for the carrying of a passenger if made in consideration of a person being given a right to be carried whether for one or more journeys and whether or not the right is exercised;
The following situations will be among those covered by the definition.
- paying a fare to the driver, the bus operator or a third party such as a travel agent or a church or scout group treasurer;
- paying a contribution towards the group hire of a vehicle where payment to someone confers a right to be carried (many such uses will be within the Section 19 permit rules);
- paying to secure a person's right to use the minibus even if the right is never exercised (for example, a company paying a contractor for the provision of a bus service for its employees from one site to another or paying a club membership fee if it confers a right to be carried);
- paying for a package of services which includes the right to use the bus. for example, a hotel or airline courtesy bus. (A payment has been made for matters which include the carrying of passengers). Companies transporting staff in minibuses should beware. Police and courts are taking the view that any deduction from wages charged by the company is a payment and that part of the package of services provided in return is transport: therefore the vehicles are being used for hire and reward;
- employment agencies should also beware. Case law has decided that a hotel courtesy bus was used for hire or reward because it was one of the hotel's services for which customers paid a fee in the form of a room charge or day delegate charge. (Occasional free rides did not alter the overall situation);
Regarding point 5 (above), let us assume that a customer has hired a gang of ten workers from an agency at a rate of £10 per man hour. In
return the agency supplies and transports the workers to a site in a minibus. The workers are paid £7 per man hour and the agency deducts
£3 to cover its administration and other costs. This is very similar to the hotel situation and there is a high risk of a court classifying
the operation as being for hire or reward.
Private schools operate buses in similar circumstances to the above, as do field centers and country pubs and clubs.
The main implications of hire or reward operation are:
- a psv operators licence or permit will be required; and
- the holder of a car licence may not drive a vehicle with more than eight passenger seats for hire or reward, unless it is operated
under a Section 19 or 22 permit and the permit rules are complied with. Additional restrictions affect holders of car licences first
obtained on or after 1 January 1997. No valid drivers licence means no insurance, even if the policy covers business use.
- In addition, the vehicle's insurance must cover the type of use to which the vehicle is put. for example, 'social, domestic and pleasure' or 'in connection with the insured's business'. Insurance policies may also impose additional requirements for drivers, such as. minimum ages, levels of experience and a limit on the number of endorsements on the drivers licence which will be tolerated. Operators should check drivers' licences at least every three months.
For operators of Section 19 minibuses, it should also be noted here that hire and reward may affect the status of a Section 19 permit where the use of advertising on the side of a vehicle affects the 'not for profit' requirements. Paid advertising inasmuch as it maybe considered sponsorship of the vehicle is potentially a 'grey area' and would have a bearing on a Section 19 permit where any sponsorship monies received would consitute a profit.
