Tomahawk Steakhouse staff told ‘loan firm 10% or face sack’on March 1, 2021 at 9:03 am

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The GMB Union says employees have been told to sign a loan agreement or face possible dismissal.

Tomahawk Steakhouse

A restaurant chain has asked furloughed staff to loan the firm part of their wages or face the sack, a union claims.

Tomahawk Steakhouse wants employees to sign an agreement to lend 10% of their wages each month to cover their pension and national insurance contributions, the GMB Union says.

Staff who refuse have been told their “suitability for the role will have to be reviewed”, it is claimed.

Tomahawk has so far not responded to requests for comment.

In a letter to staff seen by the BBC, Tomahawk, which has restaurants in Yorkshire and the north east of England and recently opened a branch in London, says it has a “short-term cash flow issue and it requires your help and support”.

It says that as it must make the National Insurance and pension payments itself the “only viable alternative is to ask for your agreement to a loan arrangement”.

It adds that the interest-free loan will be repaid “once the lockdown is eased sufficiently for the company to trade”.

Neil Derrick

GMB regional secretary Neil Derrick said: “It’s never been easier or cheaper for businesses to borrow money than it is at the moment during the pandemic, but this business, Tomahawk, want it for free and they have solved their cash flow problem by giving a cash flow problem to their staff.

“It stinks and we think it is an abuse of the furlough scheme, we think it is an abuse of the job retention scheme and we’ve asked HMRC to investigate.

“Staff have been told that if they do not agree to the loan agreement their suitability for the role will have to be reviewed, and we all know what that means, that’s a threat of dismissal.”

One member of staff, who did not want to be identified, said employees had been told about the proposal via video call.

“I logged on to the meeting and they explained that we would have to sign a new contract,” they said.

“They said if you don’t sign it we will have to see if this job’s right for you.

“It made me very angry. Everybody is already worried about money, but then to be taking more off us for the company when the company has just opened a new restaurant in London, surely they must have money behind them rather than just relying on staff to give them a loan.”

Labour MP for York Central Rachael Maskell said the company’s behaviour was “disgraceful” and said she had written to the government to highlight the issue.

“If it isn’t illegal it certainly is immoral and it is certainly punitive to the staff that they employ,” she added.

The BBC has asked HMRC to comment.

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