COLLAPSED delivery firm City Link deliberately deceived its employees about financial problems, a committee of MPs has concluded.

It was revealed City Link, which had a depot in Luckyn Lane, Basildon, had entered administration on Christmas Day.

MPs have called for greater company insolvency protection for staff in similar situations in future.

The report said: “From December 22, the company took a deliberate decision not to inform employees and contractors as to the true intentions and position of the company, and this was done for the financial benefit of City Link and Better Capital.

“This amounts to a deliberate deception by omission.”

John Smith, 61, of Little Chittock, Basildon, had worked for 15 years as a driver based at City Link’s Chelmsford depot.

He said: “There were lots of rumours flying around, but they were all flatly denied by the company.

“I’m a member of the RMT union and I got an email on Christmas Eve to say City Link had gone into administration, which was the first I heard of it.”

MPs said they were “dismayed” that small businesses and self-employed drivers were encouraged to take on additional costs despite serious questions about City Link’s ability to continue trading after December.

The firm had employed 2,727 staff and about 1,000 contractors.

RMT general secretary Mick Cash said: “The City Link scandal shocked and outraged the nation and this independent cross-party report endorses our view Better Capital and City Link deliberately deceived their employees and Better Capital put their interests before those of saving City Link or the workforce.

“Piling scandal on top of scandal the report says the law on consulting with employees was deliberately broken with a high human cost.”