Topshop employees say they have been laid off after the Arcadia Group closed its 300 UK stores an hour before the government announced its coronavirus job retention plan.
The group owned by billionaire Sir Philip Green said in an emailed statement: ‘In line with many other retailers, the Group has made the difficult decision to close until further notice all of our stores from 4pm this afternoon.’
This includes the chains Topshop, Burton, Dorothy Perkins, Evans, Miss Selfridge and Wallis.
The statement added: ‘All store staff remain employees during this time and will be paid their normal pay for March plus any outstanding overtime payments, after which we will review this situation and will be keeping our store teams updated.’
A Topshop store in London. All of the Arcadia Group’s chains were closed this afternoon over the coronavirus
Employees claimed that they had been laid off without sick pay or redundancy
Twitter users reacted furiously to the news today, with many citing Sir Philip Green’s colossal earnings
Employees took to Twitter earlier to vent their frustration, claiming that managers had already informed staff that they had been laid off. It comes as the number infected by the coronavirus soared to more than 4,000, including 177 deaths.
Sir Philip Green, the chairman of Arcadia Group
This evening, Chancellor Rishi Sunak announced a colossal relief package for employers, saying the government would cover 80 per cent of wages for staff being paid up to £2,500 a month.
One Twitter user, Eleanor Cerys, tweeted: ‘No sick pay, redundancy, nothing. The amount of tears I’ve seen this week is disgusting. Seeing my managers having to let all temporary contracts end and now this. Bad to worse.’
Another, Sophie Rebecca Guest, wrote: ‘As a manager in a Topshop/Topman store, just thought I’d clear up that all team members are being paid for March, the business would not comment on April pay at this time until there is clarity on what the government was doing to support so not to mislead staff.
‘Unfortunately we have had to end the contacts of those who were on a temporary contract, which wasn’t easy to do, and those who weren’t meeting expectations in their last two reviews/probation. All of which is a clause within a fixed term contract.’
The announcement by Arcadia came before Mr Sunak announced a further bailout, previously unthinkable by a Conservative government, after pledging hundreds of billions to businesses earlier this week.
Meanwhile the Institute of Fiscal Studies (IFS) warned the cost of Mr Sunak’s job retention scheme was simply ‘unknowable’.
IFS director Paul Johnson said if the support was claimed for 10% of employees it could cost the Government £10 billion over three months.
‘The cost of the wage subsidy package is unknowable at present but will run into several billion pounds per month that it is in operation,’ he said.
‘It is clearly a policy designed in haste and will require considerable speed and flexibility from HMRC to deliver. As a result there are obvious concerns about its design.’
The announcement by Arcadia came before Mr Sunak announced a further bailout, previously unthinkable by a Conservative government, after pledging hundreds of billions earlier this week
The plan was, however, broadly welcomed by trade unions and employers as offering a vital lifeline amid growing fears of a major recession.
Emma McClarkin, the chief executive of the British Beer and Pub Association, said: ‘We stand ready to play our part in the fight against Covid-19 and in the process protecting our communities and employees.
‘As a sector employing nearly one million people, the Chancellor’s support package announced today on staff wages will safeguard thousands of livelihoods and help closed pubs try to get through this difficult period.
‘We stand ready to work with the Government to ensure that the support is accessible as fast as possible.’
TUC general secretary Frances O’Grady said it was a ‘breakthrough’ and praised the Chancellor for showing ‘real leadership’.
‘Employers can now be confident they’ll be able to pay their wage bills. They must urgently reassure staff that their jobs are safe,’ she said.
However, shadow chancellor John McDonnell said Mr Sunak had not gone ‘far enough or fast enough’.
‘The Government must give people the economic security to stay at home by lifting the level of statutory sick pay, but it appears that the Government hasn’t done that today,’ he said.