TGI Fridays backtracks on redundancy payouts

Over 1,000 TGI Fridays workers are to receive payouts after being made redundant, despite initially being told it would not be possible.

Around a third of the restaurant chain’s workforce lost their jobs after the company was sold out of administration to investors Breal Capital and Calveton earlier this week.

This saw the closure of 36 of the chain’s restaurants, although the new owners said they hoped to save more sites after discussions with landlords.

The Times reports staff were told they had been made redundant via video call from head office with one hour’s notice, while others turned up to work to find the restaurant padlocked.

The paper said staff who lost their jobs were initially told TGI Fridays “did not have the funds available” to pay accrued holiday pay, unpaid wages, tips or redundancy.

However, they have since been told that joint administrators will make funds available to pay staff by 15 October.

Unite Hospitality said in a statement: "48 hours after they were told that the company wouldn’t make any payments, over 1000 TGI Friday workers have just been told that they will receive their wages, holiday pay and tips on Tuesday.

"This is the power of collective action and unionisation. 

"If TGIs bosses think that this will silence our members, they have another thing coming. We shall be continuing with legal action to demand compensation for the company’s failure to consult their workers." 

The Insolvency Service has issued advice for TGI Fridays employees and creditors impacted by the sale.  Employees are able to claim up to eight weeks’ wages if a company becomes insolvent.

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