Following the York-based company's closure in April and its subsequent break-up, Unite contacted its members informing them that it would be pursuing William Sessions, which traded as Sessions of York, for additional redundancy money.

However, the letter also stated that action would be taken against Paragon Print and Packaging, which bought the label division, Technoprint, which bought the commercial division, and Sessions Label Solutions, which bought the machinery division, for failure to consult with staff over the transfer to their new companies, despite the fact that all staff were made redundant and re-employed by the purchasing companies.

Unite has now said that it will be sending letters to those staff that were re-employed to ensure they are happy with their situation, after which the claims will be removed.

Steve Hart, Unite regional officer, said: "I have been onsite collecting the workers' contact details to check everything is okay with them and that they are okay with working on different terms. We just need to clear this all away now.

"It was always the intention of the solicitor to close this side of the claim down, but you can understand that, if Unite missed anything, it would have been accused of negligence."

Hart added that the protective claim against the original company, which covers around 20 members, would still go ahead.