Sir Philip Green's retail empire has "drawn tens of millions of government handouts while laying off cheap vacation workers."
- Arcadia laid off 300 employees and then cut prices, reports say
- The company that owns Topshop accepted millions to pay staff on leave
- The Arcadia Group employees were told by an executive that they would have to "take every penny we can get" from the public purse, according to reports
Sir Philip Green's retail empire is using vacation rules to cut employee pay while still receiving tens of millions in government handouts, leaked documents show.
The Arcadia Group employees were told by an executive that they would have to take "every penny we can get" from the public purse, according to reports.
Arcadia laid off 300 employees at its headquarters and then paid reduced rates for their notice period through a loophole in government rules, it said.
Those who have been laid off are paid at reduced rates – some only halfway – during their notice period due to a loophole in government rules, The Times reports.
Sir Philip Green's retail empire is using vacation rules to cut employee pay while continuing to accept government handouts, according to leaked documents (Sir Philip and Lady Tina with their daughter Chloe Green, 29, at the Cannes Film Festival 2017).
The company, which owns fashion brand Topshop, has accepted tens of millions of pounds to pay staff on leave – and has announced that it would like to receive an additional £ 3 million out of £ 1,000 per capita withholding grants in January.
Internal minutes of meetings held as part of the dismissal process are intended to indicate that a company representative, Paul Forrest, told staff that he had not "argued with you about what you say about how unfair this seems and what ethics it is Has". .
The company reportedly met the minimum legal obligations. It can't afford more. & # 39;
Sir Philip and Lady Tina Green in a gallery on Cork Street, London
Arcadia Group is now facing a legal challenge from the union Unite, which said, "Arcadia took away taxpayer-funded vacation pay during the pandemic but is now using it as a sloppy smoke screen to cut notice pay."
One employee involved in the process said, “Even by Philip Green & # 39; s Arcadia's standards, this was shocking. The idea that they would get rid of us at a time of financial crisis and not even honor our contracts is just morally and ethically bankrupt. & # 39;
Another said the decision made it seem like they disrespect anyone.
Lucy Powell, Secretary of State for Shadow Business and Consumers, said the move was a "shameful decision that suggests Arcadia is operating as a cowboy business" and ministers should "urge that behavior and take urgent action".
Liberal Democray Treasury spokeswoman Christine Jardine said the idea of companies using the vacation program to "reduce the cost of laying off staff is not only against the spirit of the system, it is utterly reprehensible".
Amid fears that companies could use the vacation system to reduce the cost of laying off workers, the government changed the law in July to force companies to pay full salaries to those who have statutory notice.
The rule does not apply to companies with a longer contractual period of notice – as is the case for many Arcadia employees.
The company, which owns fashion brand Topshop, accepted tens of millions of pounds to pay staff on leave – and said it would like to receive an additional £ 3million from 1,000 per capita grants in January, reports say
The Times reports that following questions about the process, the Arcadia Group advised employees or a partial U-turn that those who do not return to work with 12 weeks notice will receive full pay from November 1 through the end of their notice period.
The decision to cut wages by that point has not been reversed, the paper reported.
The employees had asked in internal meetings why executives who have received full pay since July would not make a 10 percent wage cut in order to alleviate the blow to the employees in the event of termination.
An Arcadia Group spokesman said the company's actions in response to the coronavirus crisis were "no different from those of most other retailers" in the UK and that their headquarters reorganization was essential to ensure they can continue to operate.
The spokesman added that they worked hard to ensure that as few jobs as possible were lost – and that they followed government policies and laws.
(tagsToTranslate) Dailymail (t) messages