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Redhall settles with Saltend workers for £1.2m

20 Apr 11 Redhall has agreed a £1.2m 'full and final settlement' with former employees on its contract with Vivergo Fuels at the Saltend bio-ethanol plant near Hull.

The company told the stock exchange this morning (20 April) that the agreement was no admission of liability but closed off the potential for future claims from former employees.

Subsidiary Redhall Engineering Solutions Ltd was thrown off the job on 14 March and its employees were locked out. The 430 workers previously rejected a £3,000 pay off from Redhall. The deal that has now been agreed appears to be very similar.

In its statement today Redhall asserted: “The company's position remains that the Transfer of Undertakings (Protection of Employment) Regulations 2006 (TUPE) should apply so as to automatically transfer the employment contracts of all the former employees of the company employed on the Vivergo contract on 14 March 2011 to either Vivergo or to a new contractor engaged to provide the same or similar services to Vivergo.  The agreement does not preclude the company's former employees from pursuing unfair dismissal claims under TUPE against Vivergo or a new contractor arising from the bringing to an end of the Vivergo contract.”

Redhall also re-stated its intention to pursue recovery of all of its outstanding costs plus damages from Vivergo.

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