TWO charities are preparing for a courtroom showdown over allegations that 19 staff were unfairly dismissed.

The Salvation Army and the 700 Club, which had both provided accommodation for homeless people in Darlington, will both deny any wrongdoing at an employment tribunal later this week.

The 19 staff are pursuing the court action because they claim they were made redundant without receiving the statutory payout.

The claim could amount to tens of thousands of pounds if proved.

The dispute grew out of the closure of The Salvation Army-run Tom Raine Court, which provided accommodation for homeless people in Darlington.

During an overhaul of its homeless service provision last year, Darlington Borough Council announced it was withdrawing its funding and retendering for all homeless services in the Borough.

The 700 Club, which runs mixed homeless accommodation from its office on Grange Road, was successful in winning one of the contracts.

The Salvation Army did not, and Tom Raine Court was closed.

Central to the case is whether or not a legal agreement was in place between the Salvation Army and the 700 Club over the transfer of staff between the two organisations. If this had been agreed and was in place, staff from Tom Raine Court would have been transferred to the 700 Club with their employment rights intact.

The Salvation Army claim the agreement was in place and that it is not therefore liable for the former employees' claim.

The 700 Club claim no such agreement existed, and therefore state that it is not liable.

Court papers handed to the Northern Echo show that the 700 Club claim that the 19 staff were never employed by it and they therefore could not have unfairly dismissed them.

The charity also states that it did not take over the contract to provide homeless services in Darlington from the Salvation Army, but merely retained its old contract during the council's review.

Neither the 700 Club or The Salvation Army wished to comment on the case ahead of the hearing, which takes place in Newcastle on Thursday, Friday, and Monday, January 31.