Arcadia Group has been named and shamed in a Guardian report for allegedly basing redundancy packages on amounts paid to affected workers whilst on the furlough scheme. This is a breach of employment law, according to experts. who warn of a mounting number of cases arising through ignorance or deliberate intent which will be headed for the courts.
The Guardian has accused the Arcadia Group of singling out furloughed employees who are owed more than the statutory minimum in notice and informing them that their payments will be based on the 80 per cent pay covered by the government’s job retention scheme, rather than their contractual pay.
It also uncovered that staff entitled to more than 12 weeks’ notice pay had been advised that they will receive furlough rates until the end of October, but must then work the remaining weeks of notice in Arcadia’s offices.
Arcadia Group has defended its actions saying that it was following guidance and legal advice.
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