Collapsed City Link owners could face legal action from employees

Collapsed City Link owners could face legal action from employees

The owners of the collapsed UK parcel carrier City Link could be facing possible legal action from employees. Manchester law firm JMW has received inquiries from more than 100 former employees of the company that went into administration on Christmas Eve regarding a possible claim.

The company, which has previously pursued legal action against firms including JJB Sports, Farmright Group and Sitel UK Limited, said it believed early indications were that employees “may well recover several thousands of pounds” from such action.

City Link laid off 2,586 staff on New Year’s Eve, as its 51 depots closed permanently.

JMW said it has been contacted by former employees who had been working at depots including those at Ashford, Basingstoke, Birmingham, Bristol, Exeter, Glasgow, Lincoln, Preston, Manchester, Durham and Scunthorpe.

The firm said two ways that a Group Action might be brought were over claims for notice pay and accrued holiday, and claims that a collective bargaining group could be entitled to further compensation.

The company is urging other former City Link employees to get in touch to find out more about the possible Group Action.

Carl Moran, a Partner in the JMW employment team who specialises in group actions, said: “Our experience in similar Group Actions has been that as soon as we begin to receive enquiries from employees, the case quickly gathers momentum and we are able to drive the case forward by establishing a critical mass of employees wishing to join in with the claim. These cases can often be hard fought, but that is what we are here for, it is what we are good at, and we expect a successful outcome.”

City Link was owned by private equity firm Better Capital, which acquired the company back in April 2013 for the princely sum of £1. The company had promised to invest £40m into turning around the loss-making company, but the turn around did not come quickly enough to prevent the company’s collapse last month.

Courier software offer

Meanwhile, courier software firm DA Systems is now offering former City Link couriers the chance to use its technology for free to get a fresh start.

The Buckinghamshire-based company said using the ACI Express system free of charge could help a courier begin trading as an independent courier business, rather than look for work with another established delivery firm.

ACI Express is a cloud-based software system that runs various aspects of same day courier operations, from job pricing and scheduling, to delivery route planning, real-time parcel tracking and proof of delivery notifications to customers.

DA System said it was offering former City Link couriers two months of free access to the software, worth more than £400.

David Upton, CEO of DA Systems. said: “The advent of courier networks and steady demand for e-commerce fulfillment means there has never been a better time to set up in businesses and take control of their future. Rather than working for a single delivery provider, it might be more prudent to spread the risk and become self-employed. With free access to Express, they have the opportunity to give it a try for two months.”

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