A Blackpool accident management company has been ordered to pay the maximum award of nearly £60,000 for unfairly dismissing an employee.

Auto Indemnity (UK) Limited, based at Blackpool Business Park, off Squires Gate Lane, has to pay £57,920 to former IT manager, John McDonald, 57.

An Employment Tribunal, held in Manchester in March, heard that the company had failed to follow correct statutory procedure' and had committed a technical breach' following a change in the law.

It found the company did not act vindictively or abusively toward Mr McDonald.

Bosses at the firm have vowed that this will not happen again.

David Sandhu, group managing director of A I Claims Solutions Plc, which owns Auto Indemnity UK, said: "It is the first time it has happened and it will be the last."

The company which has grown from 30 workers six years ago to now employing 250 staff, was named Company of the Year in 2002.

It has won numerous awards including the BAE Systems Award for Business Excellence Through People, a North West Training Award, a Challenge Award and the UK Online Forum Business Award for Excellence in E-Business.

Mr Sandhu said it was a stark warning to other businesses in the area.

He said: "I would say having good Human Resources (HR) professionals is important for any business and make sure you have professionals on site to make sure these systems are in place to protect yourself from this trap."

In a unanimous decision the tribunal awarded Mr McDonald, from Altrincham, £56,800 compensation and basic costs of £1,100 on June 15.

Mr McDonald's solicitor, Neil Gouldson, of Manchester-based Rowe Cohen Solicitors, said: "The law for fixed term workers has recently changed and the company acted as if it had not.

"He has rightly been awarded the maximum permitted."