A waste company launched an investigation after a member of staff allegedly waved a knife at a man dumping rubbish.

Witnesses described how a row between the refuse worker and the man at Newhaven household waste recycling site in Lewes Road, Newhaven, spiralled out of control.

Families dumping their waste at the site on Sunday watched as the argument erupted shortly after 11.30am when a man leaving rubbish at the foot of a large skip was allegedly asked to move it.

As the row escalated, one witness claimed the employee brandished a Stanley knife and became "abusive and threatening".

The witness, who asked not to be named, said: "The worker was in a skip and I could hear him shouting at someone and the next thing he had pulled a knife and was threatening and abusing this man.

"I thought the man was going to get injured.

"I would like to see the member of staff involved arrested and locked up."

Sussex Police were called after reports of a man being threatened but the matter was resolved and no further action was taken.

Managers at Onyx, which runs the site, confirmed an incident took place involving a member of staff but claimed he was holding a knife as part of his duties on the site.

A spokeswoman said: "The member of staff was working with a Stanley knife and was holding it when he spoke to the gentleman but the blade was retracted.

"According to the member of staff involved the gentleman was not placing his items in the right container.

"Onyx takes any allegations against our staff seriously and expects them to treat customers in a polite and helpful manner.

"In return we believe that our staff should be able to carry out their duties without fear of verbal attack and physical assault.

"Onyx has reviewed the incident internally and will not be taking any action towards the member of staff."

A Sussex Police spokeswoman said: "We were called out to reports of a member of the public being threatened with a knife at 11.40am on Sunday. The matter was resolved amicably."