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THE INSOLVENCY SERVICE has initiated court proceedings against three former directors of City Link over their alleged failure to follow proper procedures after making staff redundant when the company fell into administration.

The courier firm bosses have been charged with failing to give sufficient notice to the business secretary about plans to lay off staff.

City Link ceased trading in the run up to Christmas last year and 3,000 employers lost their jobs after the company called in the administrators.

City-Link-van This is the first time since the 1992 Trade Union and Labour Relations (Consolidation) Act was passed that criminal proceedings of this nature have been brought against company directors.

Under employment law, if 90 or more people lose their jobs,100 days’ notice is required. Convicted company bosses faces a fine of up to £5,000.

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PHC Magazine

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