News

Staff at failed hauliers E Pawson & Son and Macfarlane Transport have been awarded compensation by an employment tribunal because they were not given sufficient notice that they were going to be made redundant.

E Pawson went into administration in April while Macfarlane  called in administrators in July. The employees of both firms were given no warning about the company failures, and, therefore, their redundancies, affecting 270 Macfarlane staff and 185 Pawson employees. Eleven of the Macfarlane staff and one Pawson driver decided to challenge their redundancies under the Trade Union and Labour Relations Act (Consolidation) 1992.

In both cases Leeds Employment Tribunal granted protective awards to the employees. This means that all the staff made redundant will be entitled to make a claim against the government-run Redundancy Fund for up to eight weeks' pay.

Jayne Phillips, partner at Morrish & Co Solicitors which backed both cases, says the Trade Union and Labour Relations Act (Consolidation) 1992 placed on employers the duty to consult staff if they are contemplating redundancies of  20 or more people in one workplace. "They are required to talk to the registered union representative or appoint a representative from among the employees if no union is present.

"They are then meant to consider ways of avoiding the dismissals or reducing the number of jobs that will be lost." Road Haulage Association director of employment affairs Ruth Pott says most employers should be aware of the legislation. "Given the current economic climate, most hauliers will know things are tough and will be able to give staff the warning they are required to give."