by Our News Desk

THREE former City Link bosses are facing criminal prosecution over the collapse of the delivery firm in December 2014.
More than 3,000 City Link jobs were lost following the announcement on Christmas Day that the firm had gone into administration.

Former managing director David Smith, finance director Robert Peto and Better Capital director Thomas Wright have been charged with failing to notify the government of plans to make staff redundant, the Guardian reported yesterday.

The three will go on trial in November and, together with Sports Direct boss Dave Forsey, are the first directors of any company to be charged with the offence.

Mr Forsey, 49, appeared in court yesterday accused of failing to notify authorities of plans to lay off warehouse staff in

Scotland.

His 200 staff were given just 15 minutes’ notice in January that they were losing their jobs, it is alleged.

Protesters gathered outside Chesterfield justice centre yesterday as Mr Forsey attended to plead not guilty to the charges.

They brandished a banner reading: “Sports Direct: It’s a workhouse not a workplace.”

Members of general union Unite brought along an inflatable lion, which one organiser said represented a “roar against injustice.”

The legal actions show that the Department for Business, Innovation and Skills is taking a new approach on former bosses of bust companies.

Charges were brought under the Trade Union and Labour Relations (Consolidation) Act 1992, but City Link’s insolvency service did not comment on why the department had suddenly decided to use its powers under the Act for the first time in more than 20 years.

Employment laws dictate that employers must give workers at least 30 days’ notice before jobs are axed and the Business Secretary is to be given 30 days’ notice if more than 20 workers are let go at any one site.

Companies that fail to do so are liable for fines of up to £5,000.

The government is forced to foot the bill in any compensation payouts when staff are made redundant without proper consultation.

It has already paid out £5 million to compensate axed City Link workers.