TGI Fridays, the restaurant group, has finally agreed to pay its workers what they are due after being laid off.
This week, more than 1,000 employees lost their jobs when 35 TGI branches were closed after a failed private equity-led rescue. The video call was made by the head office to inform workers of their dismissal with an hour’s notice. Some people found out via social media or showed up at work only to find that the restaurant was padlocked and their belongings inside.
In the purchase of 51 TGI Thursdays restaurants, led by D&D London (which owns top City restaurants including Coq D’Argent Le Pont de la Tour), about 2,400 jobs have been saved. The company told staff who lost their job that it “did not have the funds” to pay their accrued holidays, final unpaid wages or tips, as well as redundancy.
The staff was told to wait six weeks before requesting reimbursement for unpaid wages. Former workers were angry and took to TikTok chat groups and WhatsApp to express their anger. Union leaders also threatened legal action.
TGI Fridays sent an email to the affected employees saying: “As the result of early asset realisations, the company has been able to settle certain claims early, which would otherwise be ranked as preferential claims on the estate of administration.
The joint administrators plan to release funds to pay arrears in wages (including gratuities), and holiday pay accrued up to and including the 7th of October 2024. The payment should be deposited into your account on Tuesday, October 15, 2024.
Bryan Simpson, Unite’s lead hospitality organiser, stated: “Forty eight hours after being told the company would not make any payments, more than 1,000 TGI employees have been informed that they will be receiving their wages, holidays pay, and tips.”
After a company change of heart, former employees will be paid what they owe.
He said: “We will continue to pursue legal action in order to obtain compensation for the failure of the company to consult its workers.”
Former TGI Fridays workers are still unhappy despite the promise to pay them money they owe. Oisin, a 19-year-old who rose from chef to team leader of the kitchen in just three years, says “They could’ve avoided all this.” “I owe £1,300 and barely have enough money to survive.
Two weeks ago, we were informed that the company was being sold. We need not worry. Our jobs were assured to be safe. “Two weeks later, over 1,000 jobs had disappeared.”
Oisin was surprised to find that the locks had been changed in the store and that he’d been fired without notice. He attended the conference call at 1pm with Julie McEwan. She informed him that they would not receive payment.
Chiara, 24 years old, said: “I have been worried and concerned about how I will afford to pay for the next few months and my travel [to the UK]. It’s hard to borrow money from friends and family when we don’t know what the future holds.
Employees can receive up to eight-weeks’ pay if an insolvent company is declared by the government.
The company refused to comment.
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