THE former head of the York-based Shepherd Group is suing the company for unfair and wrongful dismissal.

Paul Shepherd, 57, is taking his family's firm to an employment tribunal.

His lawyers claim the group effectively dismissed him from the board, and his job in charge of the group's construction division, on June 30 "without any good reason", five months after he stepped down as chairman and managing director.

A spokesman for the group said today: "His claims will be vigorously opposed."

Last November the company announced that Mr Shepherd, the eldest of three Shepherd brothers involved in the business, was "relinquishing his position" at the head of the £500 million-plus turnover organisation to concentrate on its construction division.

Instead he was to defer to a new permanent supremo, a role now occupied by Alan Fletcher, who had been non-executive deputy chairman since 1996.

It was the first time that the reins of the company had been held by anyone outside the family, whose members still own all its shares, since it was started in 1890.

Also reporting to Mr Fletcher were to be Paul's cousin Patrick Shepherd, chief executive of the manufacturing divisions, including Portakabin, Yorkon, Portasilo and Portastor Communications, and youngest brother Mark Shepherd, chief executive of the property division consisting of Shepherd Homes and Shepherd Development.

But just five months later the company stated in "some surprise" that Paul Shepherd had resigned from his post as chief executive of the group's construction and engineering division "to take advantage of opportunities outside the group".

According to the group, Mr Shepherd eventually resigned his position on the board in June.

An employment tribunal at York has been notified and the case could be scheduled for a hearing in January.

Paul Shepherd, who held the top post for five years following the retirement and subsequent death of his uncle, Colin, was unavailable for comment at his home overlooking the racecourse at Knavesmire.

But Julian Roskill, of his London solicitors Mayer Brown Rowe & Maw, said: "Subsequent to changing his role and effectively becoming in charge of the construction division, Paul was asked to resign his employment and leave, which included resigning from the board.

"Paul has worked for the group for something like four decades, and what we say is that his employment was terminated on June 30 without any good reason."

He added: "Paul had wanted to resolve this privately but unfortunately that has not proved possible. Proceedings have been issued.

"They would not have been issued unless we felt there were valid claims. All Paul is asking for is to be paid what is due to him."

The spokesman for the Shepherd Group said: "The matter is in the hands of solicitors. We cannot comment on the circumstances. All we can say is that the claims are being vigorously opposed by the group."

Paul's other brother, Piers, resigned from the board on the same day. But that, said the group spokesman, was co-incidental.

Piers is now chairman of the Shepherd Building Group pension trust.

Updated: 16:12 Monday, November 04, 2002