UK
Steakhouse chain asked its furloughed staff to loan the company part of their wages, union claimsDominic Penna
Mon, March 1, 2021,
Bone-in ribeye Tomahawk steak with long bone on grey
background viewed from above - istetiana/Moment RF
A steakhouse chain asked furloughed members of staff to loan the company part of their wages or potentially lose their jobs, a union has alleged.
Tomahawk Steakhouse asked employees who have been furloughed to contribute 10 per cent of their wages in order to cover their pension and National Insurance payments, according to the GMB Union.
Tomahawk, which operates 12 restaurants across the UK, said that its priority was to protect employees and the business after a “challenging year”.
The chain told furlough staff that it had a “short-term cash flow issue and it requires your help and support”, according to a letter seen by the BBC.
“The only viable alternative is to ask for your agreement to a loan arrangement,” the company said.
In the letter, Tomahawk said that the loans would have to remain in place for three to four months due to ongoing restrictions on the hospitality trade.
It went on to suggest that the loans, amounting to 10 per cent of pay, would be repaid “once the lockdown is eased sufficiently” for the company to operate.
Rachael Maskell, the Labour MP for York, described the company’s alleged behaviour as “disgraceful” and said that “if it isn’t illegal, it certainly is immoral”.
The GMB union claimed that the loan scheme made use of a legal loophole in the furlough system, and called for the rules to be changed so that other companies could not act in the same manner.
Tomahawk has denied allegations from anonymous employees that staff were threatened with unemployment if they did not agree to the terms of the agreement.
A spokesperson said: “At no point has Tomahawk Steakhouse suggested that members of staff would be sacked if they did not sign a loan agreement.
“Every single employee chose to sign up to this agreement.”
A steakhouse chain asked furloughed members of staff to loan the company part of their wages or potentially lose their jobs, a union has alleged.
Tomahawk Steakhouse asked employees who have been furloughed to contribute 10 per cent of their wages in order to cover their pension and National Insurance payments, according to the GMB Union.
Tomahawk, which operates 12 restaurants across the UK, said that its priority was to protect employees and the business after a “challenging year”.
The chain told furlough staff that it had a “short-term cash flow issue and it requires your help and support”, according to a letter seen by the BBC.
“The only viable alternative is to ask for your agreement to a loan arrangement,” the company said.
In the letter, Tomahawk said that the loans would have to remain in place for three to four months due to ongoing restrictions on the hospitality trade.
It went on to suggest that the loans, amounting to 10 per cent of pay, would be repaid “once the lockdown is eased sufficiently” for the company to operate.
Rachael Maskell, the Labour MP for York, described the company’s alleged behaviour as “disgraceful” and said that “if it isn’t illegal, it certainly is immoral”.
The GMB union claimed that the loan scheme made use of a legal loophole in the furlough system, and called for the rules to be changed so that other companies could not act in the same manner.
Tomahawk has denied allegations from anonymous employees that staff were threatened with unemployment if they did not agree to the terms of the agreement.
A spokesperson said: “At no point has Tomahawk Steakhouse suggested that members of staff would be sacked if they did not sign a loan agreement.
“Every single employee chose to sign up to this agreement.”
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