Mr Strafford, alongside finance director Neil Comer, was unexpectedly dismissed with immediate effect on Monday for misconduct. Neither executive received a pay-off from BT, which acquired the company in January. Mr Strafford declined to comment.

A source said that Mr Strafford and Mr Comer were dismissed after being accused of plotting to establish a new business that would have been to the detriment of Plusnet. The source said that Mr Strafford was "flabbergasted" at BT's behaviour after he had been called to the meeting to discuss Plusnet workers' remuneration, not "ludicrous accusations".

The source said the plan in question involved rolling out Plusnet's software platform internationally with the help of BT. The plan had been under discussion since last summer and the source said BT was aware of the expansion plan during its acquisition of the company.