[UK] Arcadia accused of breaching employment law over notice pay

Sir Philip Green’s retail group Arcadia has been accused by staff of breaching employment law by basing employees’ redundancy notice pay on their rate of furlough pay instead of their full contracted salary. Arcadia Group owns several high street brands including Dorothy Perkins, Miss Selfridge, Topshop and Topman. It intends to make around 500 head office staff redundant after a decline in sales during the COVID-19 crisis.

However, according to Guardian reporting, furloughed employees who face redundancy have been told that the amount of their notice pay and redundancy payments will be calculated from the 80 per cent of pay they received during the furlough. The decision goes against new legislation, rushed through by the government, requiring employers making furloughed staff redundant to pay redundancy and notice pay based on their contracted rate to those with over two years’ continuous service. Personnel Today has further details of the employees’ claims.

Sir Philip Green’s retail group Arcadia has been accused by staff of breaching employment law by basing employees’ redundancy notice pay on their rate of furlough pay instead of their full contracted salary. Arcadia Group owns several high street brands including Dorothy Perkins, Miss Selfridge, Topshop and Topman. It intends to make around 500 head office staff redundant after a decline in sales during the COVID-19 crisis.

However, according to Guardian reporting, furloughed employees who face redundancy have been told that the amount of their notice pay and redundancy payments will be calculated from the 80 per cent of pay they received during the furlough. The decision goes against new legislation, rushed through by the government, requiring employers making furloughed staff redundant to pay redundancy and notice pay based on their contracted rate to those with over two years’ continuous service. Personnel Today has further details of the employees’ claims.