Coronavirus Crisis Pontins aboutturn after staff were sacked
THE Britannia Hotel Group has performed a U-turn after it terminated 80 employees’ contracts with immediate effect due to the closure of its Pontins Holiday Park in Southport.
Staff were told on Wednesday March 18 that from Friday, March 20 their services would no longer be needed and they would receive one week’s pay in lieu of notice.
The Government announced on Friday, March 20 that it would pay wages through the coronavirus job retention scheme if a business is forced to temporarily close because of the coronavirus pandemic.
As Britannia let the employees at Ainsdale go rather than ‘furloughing’ them, it meant they did not qualify for the Government’s 80% salary package.
The Government is responsible for paying the 80 per cent wage, not Britannia, so if the hotel group does not wish to pay the 20 per cent employer’s contribution then it does not have to.
A member of the public who was concerned by the decision contacted Ainsdale councillor Lynne Thompson for advice.
Cllr Thompson said: “I received a phone call on March 23 asking for assistance after eighty Pontins employees at Ainsdale had their contracts terminated because the park was forced to close.
“I rang Pontins to clarify why employees had not simply been furloughed which would allow them to qualify for the Government’s 80% salary package. Pontins agreed to contact their HR department and call me back.
‘‘I’m delighted to say I received a call the following day from someone representing those employees confirming that the decision was reversed and they have been reinstated.”
The Manchester-based hotel chain also came under fire last month as it terminated the contracts of employees at Aviemore Coylumbridge Hotel in Scotland with immediate effect whilst also evicting them from their accommodation.
The Scottish Tourism Alliance described the letter employees received as “brutal” in a statement. Britannia has since apologised and blamed an “admin error”.
Councillor Thompson feels some businesses may be mistaken when understanding the Government’s business bailout package.
Whatever the circumstances, however, she urges employees to get advice.
She added: “Please, if anyone else has been treated in a similar fashion, seek advice – and challenge.
The government money is available to anyone on the PAYE scheme and the employer would need to contact HMRC to apply. In order to qualify the employer has to reassign the employee’s status as a ‘furloughed’ worker. The scheme will then pay 80 per cent of retained workers’ salaries – up to £2,500 a month.
The employer can choose to top that up if they wish. Wages under the scheme would be backdated to March 1. If employees are not classed as ‘furloughed’ the only other option available is Universal Credit which is roughly £98 per week and dependent on circumstances.
For more information, please visit www.gov.uk/government/ publications/guidance-to-employers-and-businesses-aboutcovid-19/covid-19-support-forbusinesses or the Money Advice website at moneyadviceservice.org. uk/en/articles/coronavirus-andyour-money.