MORE than 30 workers could lose their jobs next week after a dispute over the transfer of a council housing contract.

The workers, who are employed by Connaught Property Services Limited, have been carrying out refurbishment work for nearly two years on council-owned housing in Billingham, Teesside.

However, with Connaught set to lose the contract at the end of this month, the 36 workers have been left in legal limbo.

Despite written promises from Connaught that their jobs would be safeguarded, new contractor Durham-based Dunelm Property Services said it had no plans to take on the workers.

A worker, who did not wish to be named, said: "We just don't know what's going on. First we get a letter through the post telling us our jobs are safe and now we are being told not to bother coming into work next week."

Ian Davies, from the Amicus union, said it may take legal action if Dunelm refuses to transfer the jobs.

Mr Davies said that, under working regulations, the property company had to take on the Connaught staff.

He said: "We are waiting to see what happens but we are definitely considering legal redress."

The refurbishment contract is with Tristar Homes, the arms-length company that took over running council housing stock from Stockton Borough Council two years ago.

Phil Young, group director at Dunhelm, said: "We are under no obligation to take on these workers and it would appear they have been misinformed by Connaught."

However, a spokeswoman for Leeds-based Connaught, said that, in their opinion, all employees currently employed by Connaught Property Services on this scheme would transfer to the incoming contractor.