{"id":167209,"date":"2020-08-25T08:22:00","date_gmt":"2020-08-25T08:22:00","guid":{"rendered":"https:\/\/www.theindustry.fashion\/arcadia-accused-of-potential-legal-breach-over-redundancies\/"},"modified":"2021-08-06T12:06:57","modified_gmt":"2021-08-06T12:06:57","slug":"arcadia-accused-of-potential-legal-breach-over-redundancies","status":"publish","type":"post","link":"https:\/\/www.theindustry.fashion\/arcadia-accused-of-potential-legal-breach-over-redundancies\/","title":{"rendered":"Arcadia accused of potential legal breach over redundancies"},"content":{"rendered":"
Arcadia Group<\/a>, the owner of Topshop<\/a> and Topman<\/a> has been accused of a potential breach in employment law<\/strong>, offering some furloughed staff who are being made redundant less favourable terms for their notice periods.<\/p>\n Sir Philip Green\u2019s struggling Arcadia Group, which also owns Miss Selfridge, Evans, Wallis, Burton and Dorothy Perkins, is making up to 500 head office staff redundant<\/a> after a slowdown in trade during the COVID-19 pandemic.<\/p>\n While some staff members will receive full notice pay, furloughed workers who are contractually owed more than the government\u2019s statutory minimum have been told that their payments will be based on the 80% of pay they received<\/strong> whilst on the scheme, according to The Guardian<\/a>.<\/p>\n The government's statutory minimum payment is a week's pay for staff who have been with a company for less than two years,<\/strong> with an additional week's pay for every year worked after that, up to a maximum of twelve weeks.<\/p>\n Arcadia\u2019s plans come only weeks after the government quickly pushed through legislation which intended to prevent companies from using furlough rates of pay as the basis for redundancy terms.<\/strong><\/p>\n A spokesman for Arcadia told The Guardian: \u201cThroughout this process we will be following all of the government guidelines and legislation. We are listening closely to all of their concerns throughout this process in what we know is a very difficult time.\u201d<\/p>\n Last month, it was reported that the company has a deficit of \u00a3727m in its pension funds.<\/p>\n