Bary Malik, who founded Asian Disability Awareness Action in Bradford in 1999, and the charity’s two other staff were sacked on 16 April. The three had been suspended on full pay on 19 March.
The Charity Commission said the charity had raised concerns about “financial irregularities” and, although it is advising the trustees, there is no formal investigation.
Malik denied any wrongdoing. His lawyer Adrian Green said: "When Mr Malik was suspended, there was no disciplinary hearing and he was not presented with specific reasons for the suspension. He is obviously very upset about it and maintains that he hasn’t done anything wrong.”
Green said that the case was likely to go to an industrial tribunal.
The chair of the board of trustees Liaquat Hussain confirmed that Malik and two other members of staff had been sacked.
“We are still taking calls and will be appointing new members of staff next week,” he said.