Seven former organisers of the Bradford Festival - who lost their jobs when the event was contracted out to a new company - have received compensation pay-offs, it has emerged.

The group lodged claims of unfair dismissal at an employment tribunal after the Bradford Festival Company was dumped after 15 years by Bradford Council.

They have now agreed to withdraw the claims after striking a deal with the new company, Bradford International Festival Ltd.

Alan Rye, of Bradford Law Centre, which has been advising the former workers, said: "This case has been settled out of court but the terms must remain confidential. They found the terms acceptable, and agreed to withdraw their applications to the tribunal."

The seven workers are former festival director Allan Brack, community and education co-ordinators Sharon Taylor and Annie Latham, production co-ordinator Paul Cowell, finance officer Steve McCabe, artists liaison Anne Sanders and markets co-ordinator and administrator John Benton.

A confidential settlement has been reached through the Advisory, Conciliation and Arbitration Service.

The seven workers' claims would have been made on the basis that their jobs should have been protected when the festival contract was transferred. Usually, council workers' jobs or those of council contractors transfer to a new employer under TUPE, the Transfer of Undertakings (Protection of Employment) regulations.

When contacted by the Telegraph & Argus, Mr Brack refused to comment.

Robin Morley, of Bradford International Festivals Ltd, also declined to comment. "It is a private matter between ourselves and the applicants," he said.

Some councillors were unhappy at the way the contract was awarded last year.

Councillor Andy Mudd, chairman of the regeneration and culture overview and scrutiny committee, said: "I am pleased these people have been compensated for losing their jobs. I am going to ask for a report on this, what's happened, why it's happened."

He said the Council spent thousands of pounds on the advice of a leading counsel, who said TUPE regulations did not apply.