WORKERS at the centre of a bitter employment dispute between two Christian charities have been left in financial ruin, The Northern Echo can reveal.

Some have been taken to court and face losing their homes as creditors demand payment.

The 18 former employees of the Salvation Army had their contracts transferred to Darlington charity the 700 Club following a ruling by a Newcastle employment tribunal on Monday.

Video courtesy of Tyne Tees.

But the workers must wait until March to learn the value of their redundancy package – eight months after receiving their final Salvation Army pay.

Because none of those involved have yet been officially made redundant, payment protection on loans and mortgages has not been paid.

The Northern Echo reported yesterday that the 700 Club, which is at risk of closure, faces a bill in excess of £100,000.

Former admin worker Anne Murray had worked at the Salvation Army-run homeless hostel Tom Raine Court since it opened 25 years ago.

The 57-year-old, of Salisbury Terrace, Darlington, said it had been a dreadful year for all concerned.

She said: “I wouldn’t want to see any charity go under, but me and 17 others could have gone under and still could.

“I’ve been in my home for 55 years, and I sat in the living room at Christmas and wondered if it would be the last here.

“We all just want a quick and efficient end to this.”

The 700 Club and the Salvation Army offered hostel accommodation in Darlington before Darlington Borough Council chose to cut the number of beds for the homeless by half.

Following a tendering process, the council offered the contract to the 700 Club and Tom Raine Court closed.

However, the Salvation Army used legislation designed to protect workers in the event of a corporate takeover to transfer 18 of its staff to the 700 Club.

The tribunal upheld this and the 700 Club must now either pay off its new staff or employ them.

The Reverend Dr John Elliston, who founded the 700 Club, said yesterday that his focus was on looking to the future.

“They deserve redundancy pay and everything else that is due to them,” he said.

“That is not an issue as far as I’m concerned.

“This is not about people at all. We applaud the fact they have got a just settlement.”

The 700 Club is understood to be meeting over the next few days to decide how it is going to pay the estimated £250,000 bill to the former Salvation Army staff, while keeping its own homeless operation open.