Haulier to pay
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A RULING by the Department of Employment that four drivers, who were employed by a company which had acquired the vehicles they had driven for their former employer, were not entitled to redundancy payments because of continuity of employment, has been overruled by a Leeds Industrial Tribunal.
The drivers concerned, C. J. Wood, R. Fawcett, M. Carroll and R. W. Carrington, were all employed by Nigel P. Scott (Haulage) Ltd. That company's business diminished until it became vital that it should dispose of some of its fleet. An arrangement was entered into with Warin and Wassell Bulk Transport, for the purchase of three of the vehicles and the hire of a further four.
The Tribunal was told that there was no question of Scott being taken over by Warin and Wassell, that there was no vending agreement or transfer of goodwill. There had simply been a sale of three vehicles and a hiring of four.
The Tribunal said that it could not find, within the meaning of Section 13 of the Redundancy Payments Act, 1965, that there had been a change of ownership of the business.
At the time the drivers' contracts of employment were terminated by Scott, on May 14, the Department of the Employment considered there had been a transfer of business, that offers of employment had been made by Warin and Wassell, and I been accepted, and that er of the drivers had continuit! employment.
Consequently, I Department held there Was liability for redundar payment.
It was clear that I company had done its best obtain the agreement of WO and Wassell to of employment to the drivq despite the fact that t business, or part of it, w $ 1 1. being sold as such.