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Sir Philip Green’s Arcadia fashion group took a 180-degree turn and agreed to pay full salaries for head office staff facing dismissal.
It comes after reports that Arcadia, whose trademarks include Topman, Topshop and Dorothy Perkins, would only pay part of its staff just 50% of their ad pay.
An Arcadia spokesperson said their actions were linked to around 300 layoffs at headquarters and that the company was “very sorry for all those affected by the distress we have caused and apologizes without reservation.”
A statement read: “We recently implemented a policy for those employees who are working with their notice on leave to receive their leave pay in lieu of their full salary.
“We made a mistake in this decision and the board today amended this policy to ensure that all affected employees receive their full salary. They will be notified of this decision immediately.
“We are very sorry to all those affected by the anguish we have caused and we apologize without reservation.”
The Unite union said it had threatened legal action over the illegal deduction of earnings on behalf of more than 40 head office employees.
He has hailed the promise to pay head office staff full salary during the reporting period as a U-turn and “stunning victory.”
Arcadia Group became part of Taveta Investments, owned by Green and his family, in 2002.
The statement said it had been forced to make “many difficult decisions” during the coronavirus pandemic, including restructuring its offices. He had sought to protect the well-being of staff and clients, and had observed all guidelines and legislation, he added.
Unite regional official Debbie McSweeney said: “We understand that it is almost unprecedented for Arcadia to apologize for such behavior towards employees, but Sir Philip Green, one of the richest in the country, should never have allowed this situation to occur. . mens.
“Unite would like to sincerely thank our members for the solidarity and personal courage they have shown in standing up to the leadership of Arcadia and playing their part in redressing a flagrant wage injustice. It is an amazing victory. “
He stated that it can also serve as a warning to employers using the government’s licensing scheme, which is aimed at helping protect work during the pandemic.
She said: “This sets a strong marker for other employers who may be thinking of taking advantage of the government licensing scheme. Unite is on high alert for these cases and how they can negatively affect our members.
“Unite will want to examine Arcadia’s statement in detail before finally deciding to withdraw our legal action.”
