TEN town hall workers were “sacked” after they challenged a Burnley council decision to axe a car lease scheme costing £860,000.

Council bosses claim they needed to scrap the car lease deal as they could be liable for challenges under equal pay laws.

But an employment tribunal has ruled that the council was wrong to dismiss the 10 senior staff, and rehire them under new contracts, minus the perk, 12 weeks later.

The fight was undertaken by Karen Davies, Stevan Snaith and Andrew Rolfe, who gave evidence at the tribunal, and seven other employees Senior staff were entitled to 10 per cent of their salary, at their particular grade, towards the cost of a hire car.

Following the introduction of the scheme in 1989 though, council chiefs decided to close it to new employees four years later because it was costing too much money and the number of people qualifying for the perk eventually dwindled.

However when Burnley council was asked to undertake a job evaluation review, under equal pay legislation, friction surrounding the scheme resurfaced.

Officials from Unison, who had always felt that the deal was unfair on new staff and divisive, agreed that the deal should be scrapped.

But the minority still entitled to the perk, led by Mrs Davies, formed CLUG (the Car Lease Users Group) and argued that the union had no right to sign away their entitlement and a grievance was lodged in February 2006.

Eventually councillors voted to scrap the car lease scheme and the staff were handed 12 weeks notice at the end of June 2007, on the basis that they would be rehired at the end of September on new contracts. There was no right of appeal.

In the meantime CLUG had hired Farleys Solicitors and the council was contacted by a lawyer, pointing out that their clients were being asked to sign away a sum of around £860,000, and urging fresh talks.

Ruling that the 10 had been unfairly dismissed, Tribunal Judge John Brain said: “The tribunal bears in mind that this withdrawal of this scheme was going to save the respondent a significant sum of money.”

On Tuesday the panel met behind closed doors to decide the level of compensation open to the 10 council workers affected.

Their decision will be forwarded to all parties within the next few weeks.

Resources director Nick Aves, of Burnley council, said: “We are disappointed by the tribunal’s decision and are considering (lodging) an appeal.”