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Dismissal 'not unfair'
Page 42
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IF A company decides to make directors of a subsidiary company redundant, there are no grounds for claiming unfair dismissal, an Industrial Tribunal in Scotland has ruled.
George Crawford, managing director of CMT Motors (Rutherglen) Ltd and company secretary Elizabeth Crawford claimed unfair dismissal against CMT Steel and Supplies (Scotland) Ltd. The Tribunal heard that Mr Crawford approached the board of CMT Steel and Supplies (Scotland) Ltd with a view to them acquiring his business and site as a going concern.
Shortly after the deal, the directors of the parent company decided to cease trading under CMT Motors (Rutherglen) Ltd because of two years of bad trading figures. Mr Crawford was made redundant and offered £3,600 severance pay. Mrs Crawford received an appropriate redundancy payment.
The Tribunal, which said it had sympathy with the two directors, told them that the decision to close a company was a matter for the employers.
The application was dismissed.