AN employment tribunal hearing that could have been a test case for taxi firms did not go ahead after both parties agreed a settlement.

The case, which was to have been heard at Exeter last week, involved Anna Reed and Teignmouth company Bryans Taxis.

Public documents revealed that Ms Reed, 40, who worked as a despatcher and taxi driver for two years, alleged she was unfairly dismissed after making complaints about another member of staff.

The taxi firm maintained she was self employed and would not qualify for compensation.

Other taxi companies were awaiting the outcome with interest, as a number of employment tribunal cases about taxi driver status have ruled they must be taken on a case by case basis.

Neither of the parties in the Teignmouth case wanted to comment.