Tomahawk begins repaying loans taken from its staff following wide-scale criticism

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- Last updated on GMT

Tomahawk begins repaying loans taken from its staff following wide-scale criticism

Related tags Tomahawk Casual dining steakhouse

Restaurant group Tomahawk has begun repaying its staff the money it borrowed from them to help safeguard its business.

The group hit the headlines earlier this month​ when it was accused by the GMB Union of bullying its staff after it asked its workers to lend it the money to pay employers National Insurance and pension contributions.

Staff have now been sent a message from the company saying the money that had been deducted was now being returned to their bank account, according to the GMB, following what it says was “sustained pressure” from the union as well as politicians and the general public.

Tomahawk said that it had asked staff to help cover the cost of NI and pensions but refuted claims by the GMB Union that staff were compelled to do so.

“At no point has Tomahawk Steakhouse suggested that members of staff would be sacked if they did not sign a loan agreement,” it said at the time in a statement.

In an update statement Tomahawk said that provisions for businesses outlined in the Government's March Budget had allowed it to make the repayments. "As part of the voluntary agreement signed by all of our staff, we promised that any monies loaned would be returned as soon as we were financially able," it said.

"Following the Budget announcement last week, we are delighted to have been able to swiftly honour that promise this week. All staff have now received the loaned amount, along with an additional 20%, as a thank you for supporting the business at this critical time."

Describing the decision as a “massive win for workers” GMB regional secretary Neil Derrick said that Tomahawk should never have asked for employees for money in the first place.

“This was always an outrageous exploitation of both the furlough scheme and low paid, young workers,” he said.

“The cash should never have been taken in the first place as no employee can afford a further reduction in their take home pay - especially when it’s to cover their employer’s own obligations.  

“Let’s hope this abuse of the furlough scheme is over and not repeated elsewhere.” 

 

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