think they would have been well happy with the contract offer but all they were offered was a small amount over government. thats the part I don't get that contracts do not seem to mean anything if companies are able get away with this.
Obi-Wan has taught you well, but you are not yet a Jedi Master Enzo. It is imperative to remember The Golden Rule. That is: "He who owns the Gold makes the rules"
Lawyers will seek to comfort you that you have a case, a strong contractual chanc3 of winning, lulling you into spending cash on fees and raising expectations, only to get bu££er all extra back and dawning on you why you were sucked into the fee-grabbing story without a counter balance reality check that contracts mean very little in reality. An employer can find ways around anything and they always win in 99.9% of cases.
My position was always, cease to talk to me, cease to talk to the decision-maker and the budget holder. I'd just turn them over to the HR and lawyers with a single instruction - see this through and finish it without dragging it on and nothing over contractual entitlement.
People rarely realise such realities and blindly and emotionally wade in.
The OP has had many pieces of good advice so is best placed on way forward. Interesting thread that got my interest with a rewuest for HR advice.