Up to 124 ex-Connaught workers were hoping to secure a legal ruling that would have paved the way to seek compensation from contractors that took over the housing repair work.

Construction union UCATT had taken an employment tribunal on behalf of the workers arguing that when Connaught went into administration in September 2010 their contracts transferred to other companies and their staff should have been TUPE transferred with the new contracts.

If UCATT had been successful the workers could have claimed for unfair dismissal and other rights against the contractors.

The Employment Tribunal ruled that no TUPE transfer took place.

UCATT is now exploring a claim on behalf of the workers for a protective award as Connaught failed to inform and consult the workforce before making them redundant.

If this claim is successful the workers will be paid by the Government’s Insolvency Service for eight weeks pay at the statutory maximum amount.

Brian Rye, Regional Secretary for UCATT’s Eastern Region, said: “The ex-Connaught workers are bitterly disappointed with the decision by the employment tribunal.

“Despite this setback UCATT is absolutely committed to fighting for justice for the workers and we will be using every legal avenue left open to us.”