Employment lawyers contacted after haulage firm collapses

Former staff at a Birmingham haulage firm are contacting employment lawyers, after claiming they were dismissed without any warning.

Cross Transport, a family-ran business based at Hams Hall in Coleshill went into administration last month, placing 117 jobs at risk. With a fleet of 200 vehicles operational across the UK, the firm had been hit by fuel and labour cost increases as well as rising overheads.

Nuala Toner, managing director of Nualaw told TheBusinessDesk.com that the law firm was planning on submitting a claim on the basis that there was no consultation performed before the dismissals.

She said: The workers were dismissed as redundant without any warning. Those employees can make various applications to the government but may be unaware that Cross Transport had a legal duty to undertake at least 30 days of consultation before making any dismissals. 

“Our investigations so far show that this duty was breached without any reasonable excuse. Many former employees who were dismissed have been in touch with us already as we prepare a claim. 

“If successful, the claim is worth a gross sum of a little over £5,000 (as a maximum) each which is payable by the government in addition to redundancy and notice pay.  Employees don’t need to have two years’ service but do need to start proceedings within three months of their dismissals”. 

In Cross Transport’s results ending February 2022, the board revealed turnover had decreased from £22m to £16.3m, with profit margins also falling from 27% to 18%.

It said whilst the firm was “reliant on the ongoing success of those companies offering significant online presence and home delivery” it considered that it had “adequate resources to continue in operational existence for the foreseeable future”.
 
Former staff are being encouraged to get in touch to make a claim.