Connect with us

Hi, what are you looking for?

World News

Steakhouse chain asks staff to ‘lend 10% of wages’ amid Covid crisis

Restaurant staff at the Tomahawk Steakhouse chain have been asked to lend the business a tenth of their wages in order to help it through the latest lockdown.

The chain, which operates 12 venues in Yorkshire, the north-east of England and London, wants furloughed staff to pay for their own monthly national insurance and pension payments by way of a “voluntary loan” to the company to help it plug a cashflow crunch.

“The company has a short-term cashflow issue and it now requires your help and support,” the restaurant told its 500 staff in a loan agreement letter. “We need to get reopened after the end of this lockdown.”

The chain said it had supported staff during the coronavirus crisis by placing them on the government’s furlough scheme, as opposed to making them redundant, and “now we respectfully ask, in these difficult times, for you to support us”.

The group, which has continued to employ staff and open new sites during the pandemic, including in London in December, said it anticipated employees would have to do this as a “voluntary loan” for “three to four months”.

The letter states: “Once the lockdown is eased sufficiently for the company to trade, repayment of the loan will start to occur and no further deductions will be made.”

The loan agreement letter estimates that the company will deduct approximately 10% of employees’ gross pay as a loan to cover national insurance contributions and pension payments.

Neil Derrick, a regional secretary at the GMB, said the loan scheme exploited a legal loophole and was an “outrageous abuse” of the government’s furlough scheme.

“It’s never been easier for businesses to access cheap money,” he said. “Yet Tomahawk is bullying its own young, low-paid staff to raise interest-free cash. Tomahawk needs to take a long hard look at its behaviour, and this legal loophole must be closed before other companies follow suit.

Howard Eggleston, who founded the company in 2017, defended the scheme, saying it had been given overwhelming support from staff.

“We have 500-odd staff and we have had 100% take-up on the offer to try to help the company through,” he told the Guardian. “It is a voluntary agreement, the word loan stipulates what it is, we will pay it all back. It gets us through a massive hump where we are struggling to keep going.

“To be honest, I was trying to keep everyone in a job. The easier option would not have been to do that and I decided that was the absolute wrong thing to do. At the end of the day, I did what I thought was right at the time to keep everyone getting money and not being stuck with nothing.”

Read more:
Steakhouse chain asks staff to ‘lend 10% of wages’ amid Covid crisis

Click to comment

Leave a Reply

Your email address will not be published. Required fields are marked *

You May Also Like

Uncategorized

Neque porro quisquam est, qui dolorem ipsum quia dolor sit amet, consectetur, adipisci velit, sed quia non numquam eius modi tempora incidunt.

Uncategorized

Nemo enim ipsam voluptatem quia voluptas sit aspernatur aut odit aut fugit, sed quia consequuntur magni dolores eos qui ratione.

Uncategorized

Quis autem vel eum iure reprehenderit qui in ea voluptate velit esse quam nihil molestiae consequatur, vel illum qui dolorem eum.

Uncategorized

Neque porro quisquam est, qui dolorem ipsum quia dolor sit amet, consectetur, adipisci velit, sed quia non numquam eius modi tempora.

Disclaimer: Buzzclever.com it's managers and its employees (collectively "The Company") do not make any guarantee or warranty about what is advertised or above. Information provided by this website is for research purposes only and should not be considered as personalized financial or health advice. Copyright © 2021 Buzz Clever. All Rights Reserved