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After redundacy advice

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Im looking for some advice reguarding my redundancy.

I worked for a small bodyshop with only 4 of us employed including the director. Myself and another employee both the only painters in the bodyshop have both been made redundanct due to the company not being able to afford to keep us there. We have both worked our notice and are no longer there.

We was told by the director that he would discuss with us about the possibility of doing our old job but on a self employed contract basis. I then find out this week that he has another painter in doing the contract work that he was going to offer to us.

where do i stand? Is this legally wrong or just moraly?

Thanks
Luke

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