Bosses can be bastards! Fact.
Go for the jugular and sue them hard. At least whilst looking for another job you will have time to sort out the necessary paperwork.
If you have any snotty or disrespectful emails from your ex-boss, that can also help your case as you can say you were being picked on.
I've been in a similar situation and kept my job, new contract and a pay off at the end of it.
Although I have now been out of work for 2 months so it hasn't helped long term unfortunately.
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