Redundancy for transferred driver
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iiVER who was transferred from one company to another along la contract has been awarded a redundancy payment based on ieryice with both companies.
Birmingham Industrial Trial awarded £170 to driver K. ly, who transferred from st Transport to R. W. Priest odside) Ltd along with a I contract.
its decision the Tribunal R. W. Priest's business had ined and it had to make a er redundant. Mr Tandy was ;en as he was not as well 'fled as the other drivers.
re question was whether Mr Jy could add his service with previous employer to that R. W. Priest, and this deJed on whether there had -1 a change in ownership of of Priest Transport.
ne part of the business iging ownership needed to self contained, though it d be and usually was inteed with the whole business. le transfer did not have to be money, it could be gratu3. The employee had to have employed by the business did not need to have been Jsively employed on the concerned.
The changing hands of assets alone did not constitute a "transfer.'' Goodwill had to be involved as well.
Mr Tandy had been employed by Priest Transport from October 8, 1978, had never worked for less than an eight-hour day or less than 16 hours in a week — it being necessary for a minimum of 16 hours to be worked in a week for it to count towards the amount of the redundancy awarded.
When Mr Priest died, the company had to be wound up with effect from December 21, 1979. R. W. Priest did not have the necessary resources to take over all the steel-transporting contracts which constituted the goodwill of the company. It 'could only take over about 25 per cent of the business, and employed four drivers.
The Tribunal found that the steel contract constituted a sufficient part of the goodwill of Priest Transport for a bona-fide transfer to have taken place — it was a separate contract with different customers.
The Tribunal held that Mr Tandy had had two years' service for the purposes of calculating the redundancy payment.