Steakhouse chain asks personnel to ‘lend 10% of wages’ in the middle of Covid crisis

Tomahawk has actually had ‘100% take-up on the offer’ to try to assist it through England’s lockdown

Dining establishment 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 runs 12 locations in Yorkshire, the north-east of England and London, wants furloughed personnel to spend for their own month-to-month nationwide insurance coverage and pension payments by method of a “voluntary loan” to the company to assist it plug a cashflow crunch.

” The company has a short-term cashflow problem and it now requires your help and support,” the restaurant informed its 500 personnel in a loan contract letter. “We need to get resumed after the end of this lockdown.”

The chain stated it had actually supported personnel throughout the coronavirus crisis by putting them on the government’s furlough scheme, instead of making them redundant, and “now we respectfully ask, in these challenging times, for you to support us”.

The group, which has continued to use staff and open brand-new sites during the pandemic, consisting of in London in December, said it prepared for workers would have to do this as a “voluntary loan” for “3 to 4 months”.

The letter states: “Once the lockdown is alleviated sufficiently for the company to trade, repayment of the loan will begin to take place and no more deductions will be made.”

The loan contract letter estimates that the company will subtract approximately 10% of staff members’ gross pay as a loan to cover nationwide insurance contributions and pension payments.

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

” It’s never ever been simpler for organizations to access cheap money,” he said. “Yet Tomahawk is bullying its own young, low-paid staff to raise interest-free money. Tomahawk requires to take a long tough appearance at its behaviour, and this legal loophole should be closed prior to other companies follow suit.

Howard Eggleston, who founded the business in 2017, protected the plan, stating it had been offered frustrating assistance from staff.

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

” To be truthful, I was trying to keep everyone in a task. The much easier alternative would not have been to do that and I decided that was the absolute incorrect thing to do. At the end of the day, I did what I believed was right at the time to keep everybody getting money and not being stuck to absolutely nothing.”

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