A struggling Hatton firm which provides help to thousands of motorcyclists in the Midlands has been told to pay three former employees more than £42,000 following their resignations.
MAG (UK) Ltd of Oakslade Station Road, Hatton, near Warwick, was formed in 1973 to provide help and advice about road safety and anti-thefts to thousands of motorcyclists in return for subscriptions.
Recently, James Tyson (who had been campaign co-ordinator), Nicholas Brown (former general secretary) and former employee Louisa Smith made legal claims for constructive unfair dismissal at Birmingham Employment Tribunal. They said they had resigned from the firm – prompting their claims for constructive unfair dismissal - following allegations of bullying and intimidation.
Miss Smith also made legal claims for breach of contract and unpaid wages.
Tribunal judge David Kearsley decided at the previous hearing that all three had been successful with their claims following a five-day hearing and said a decision about compensation would be announced later.
Mr Kearsley said there had been a breach of trust and confidence and that the awards had been uplifted by ten per cent because the firm had not handled the resignation process correctly.
After asking the claimants and the respondents to consider calculating the total award among themselves after giving them a brief outline, it was eventually announced that the total would be £42,500.
Mr Tyson’s award also included £655 holiday pay and more than £1,000 in expenses.
Neil Liversidge, who helps run the MAG firm, said afterwards that the organisation was at present struggling financially despite having about 10,000 members and did not have the money to pay the awards.
“We have since formed a new organisation called the Motor Cycle Action Group Ltd at Hatton, in the same kind of business, with motorcycle members joining us from MAG” said Mr Liversidge.