TGI Fridays to Pay Workers Following Redundancy Dispute
Posted by Emma on 11th Oct 2024
TGI Fridays has agreed to pay employees outstanding wages and benefits after initially refusing to do so. This decision comes after over 1,000 staff members lost their jobs when 35 TGI Fridays restaurants were closed following a failed private equity-led rescue deal. Workers were informed of their redundancies in an abrupt and distressing manner, with many receiving only one hour’s notice via a video call from the company’s head office. Others discovered their fate through social media or found the restaurant locked, with their personal belongings still inside.
The buy-out deal, led by D&D London, secured the future of 51 TGI Fridays branches, preserving approximately 2,400 jobs. However, for those who lost their employment, the company initially claimed it lacked the funds to cover accrued holiday pay, final wages, tips, or redundancy payments. Workers were advised to apply for reimbursement of unpaid wages, with a waiting period of six weeks for any potential payments.
This sparked an immediate outcry from affected employees, who took to social media platforms like TikTok and WhatsApp to voice their frustration. Union leaders also entered the fray, threatening legal action over what they viewed as the company’s mishandling of the situation.
In a subsequent email to workers, TGI Fridays announced that funds had been made available due to early asset realisations. As a result, they would now be able to settle certain claims, including unpaid wages, tips, and holiday pay, up to October 7, 2024. The company confirmed these payments would be made by October 15, 2024.
Despite this resolution, many workers remain disillusioned. Bryan Simpson, lead organiser for the hospitality division at Unite, expressed scepticism over the company’s handling of the redundancies. “Forty-eight hours after being told no payments would be made, over 1,000 workers were informed they would receive their owed wages and tips,” he said. Simpson also confirmed that legal action would continue to seek compensation for the lack of proper consultation before the layoffs.
Many former employees still feel the emotional toll of sudden job losses. Oisin, 19, who had progressed from chef to kitchen team leader in three years, described the ordeal as avoidable. “I’m owed £1,300 and barely have enough to get by. Two weeks ago, we were told not to worry, that the company was being sold and our jobs were safe. Two weeks later, over 1,000 of us are out of work.”
Another affected worker, Chiara, 24, echoed similar concerns. “I’ve been worried, unsure how I’ll afford the next few weeks, especially with my plans to travel abroad. The uncertainty about when we’ll receive payment has made it impossible to even borrow from family.”
While the announcement of impending payments has eased some immediate financial pressures, handling the situation has left a lasting mark on many employees who feel the company could have managed the process more responsibly.