A UNION said a Tees Valley construction firm is "playing with people's lives" after suspending the majority of its staff without pay, claiming many had been involved in fraudulent behaviour.

The GMB said it was considering legal action after 23 of its members were amongst 25 of 26 staff it claims have been suspended by Arngrove Construction Services at its headquarters on the Preston Farm Business Park in Stockton.

The company claimed they were suspected of "gross misconduct" despite no specific allegations being put to any of the individuals involved.

The staff, who have not been paid in over a month, were sent a letter on October 7 telling them they were suspended without pay until further notice.

The letter from Jamie Shanley, managing director of the company, claimed that a deal to sell the business had fallen through "mainly" because of "serious issues" that were discovered during due diligence.

Despite Mr Shanley making a number of general allegations in the letter, it is understood that exactly the same document was sent to all the affected staff and no individual employee has been accused of any particular offence.

The letter states: "We have reason to believe that within the company there has been a large number of employees being involved and taking part in fraudulent behaviour, deliberate falsification of records, misuse of the company's name and property owned, theft, bad mouthing publicly and bring (sic) the company's name into disrepute.

"The misuse of the telecommunications systems, serious and purposeful negligence that has caused the company serious financial loss and damage, serious infringement of health and safety rules and a breach of confidentiality.

"There have also been direct accusations of fraudulent time sheets and the financial and beneficial use of the company's resources to fund non Arngrove related work to make money for all parties and individuals involved, in turn financially benefitting them and purposely losing money for Arngrove."

Mr Shanley goes on to say the firm will be carrying out a full investigation and staff members would be called to meetings at which they can have a trade union representative present.

Despite this claim the GMB said that more than a month later no meetings had been arranged with any of its members and the company had not replied to the union's written requests for information or to formal grievances lodged by its members.

The Northern Echo contacted the firm last week to ask for a comment on the suspensions but the call wasn't returned.

Yesterday the firm's head office number was permanently engaged and Mr Shanley did not return our calls when we attempted to contact him directly yesterday.

Stephen Thompkins, GMB regional organiser, said the union was now taking legal advice.

He said: "The employees are living under a cloud of uncertainty, it is going back to Victorian times the way the workforce is being treated.

"To suspend people without money is putting them under extreme stress and anxiety.

"We just need answers, either get on with an investigation or if the company is in difficulties tell us and stop playing with people's lives."

The firm, which trades as Arngrove but is owned by Edinburgh based Shanley Investments Ltd, was bought from administration in 2008 when it employed almost 50 people.

The business specialises in residential insurance repair work and the majority of staff are skilled tradesmen such as joiners or painters.