Specialist engineering group Redhall has agreed a £1.2m settlement with former employees working on a major contract which was cut short last month.
Redhall Engineering Solutions was working on Vivergo’s bioethanol plant at Saltend, near Hull, but its contract was abruptly ended amid claims it had fallen behind on its work.
Vivergo claimed the 400 workers involved were Redhall’s responsibility but the engineering firm insisted they had been transferred to Vivergo.
Wakefield-based Redhall has agreed the cost but said this morning it has not admitted liability and it remains convinced that the workers contracts should automatically transfer to Vivergo or a new contractor.
Wakefield-based Redhall is also continuing its claim against Vivergo for £14m of losses it claims to have suffered as a result of the ending of the contract.
Redhall said the cost of the settlement had been included in its previous statements on its working capital and the deal would remove the threat of future claims from its former employees.