Workers at a nationwide chain of Christian bookshops have won "substantial" damages after being sacked by e-mail.

Workers union Usdaw represented the 32 clients of Stephen the Great Charitable Trust (SSG), who were forced to sign contracts granting fewer holidays, longer hours and poorer pension rights, then sacked between February and June 2008.

Many of the workers based in Norwich, Cambridge, Lincoln, Sheffield, Worcester, Carlisle, Chester, Exeter, Newcastle and York were informed of their situation by e-mails sent from SSG offices in the US.

Former employee, Heather Leather, said that the staff where she worked had a combined experience of over 100 years.

"We simply didn't know what was happening, and we never expected to be treated this way when we had done nothing wrong," said Ms Leather.

John Hannet, Usdaw General Secretary, added: "We are delighted that these long-serving, dedicated members have finally won the compensation they deserve. The case was so complex; they would never have been able to get such a great result without the backing of a union."

William O'Neill Head of the Litigation Department at Rowland Solicitors LLP adds: "The ruling is both setting a precedent and sending out a warning to employers who fail to respect the rights of their employees.  In today's society the promotion of equality and fairness has taken pole position.  Employers must respect the integrity of their employees when signing contracts of employment.  They must realise that duress cannot be used as a weapon in forcing the acceptance of unfair terms upon employees.

Employers must adhere to the legal framework and regulations through which employees' rights are protected.  This ruling gives hope to those still oppressed."

The exact payout, which includes wages still owed to employees when they were dismissed, is subject to a confidentiality clause.