Arcadia: Sir Philip Green's company U-turns to pay full salaries for staff facing redundancy

Sir Philip Green’s fashion chain, Arcadia, has U-turn on its plans to pay staff facing redundancy as little as half their notice salary.

The group, which include major brans like TopShop and Dorothy Perkins, will now pay full whack to head office workers at risk of losing their jobs.

Sir Philip’s net worth is some £930m, according to the latest edition of The Sunday Times’ rich list.

An Arcadia spokesperson said the move would affect about 300 people and issued a grovelling apology. Bosses were “extremely sorry to all those individuals impacted for the distress that we have caused and apologise unreservedly”, they said.

In a statement, Arcadia Group said: “We recently implemented a policy for those employees who are working their notice on furlough to receive their furlough pay instead of their full pay.

“We got this decision wrong and the board has today amended this policy to ensure all affected employees will receive their full pay.

“They will be notified of this decision immediately.”

The Unite union said it had threatened to take legal action for illegal deduction of earnings on behalf of more than 40 head office staff.

It welcomed the promise to pay head office staff full pay during their notice period and called it an ” amazing victory”.

Arcadia Group became part of Taveta Investments, owned by Sir Philip and his family, in 2002.

Its statement said executives had been forced to make “many tough decisions” during the coronavirus pandemic, including the restructuring of its offices.

It has looked to protect the welfare of its staff and customers and observed all guidelines and legislation during, it added.

Unite regional officer Debbie McSweeney said: “We understand that it is almost without precedent for Arcadia to apologise for such behaviour towards employees – but this situation should have never been allowed to happen in the first place by Sir Philip Green, one of the country’s richest men.

“Unite would like to sincerely thank our members for the solidarity and personal courage they have shown in standing up to Arcadia’s management and playing their part in righting a flagrant pay injustice. It is an amazing victory.”

Ms McSweeney claimed the Arcadia U-turn may also serve as a warning for employers who use of the government’s furlough scheme, designed to protect jobs from the coronavirus-driven recession.

She said: “This puts down a strong marker to other employers who may be thinking of taking advantage of the government’s furlough scheme – Unite is on high alert for such cases and how they may adversely affect our members.

“Unite will want to examine the Arcadia statement in detail before finally deciding to withdraw our legal action.”

Additional reporting by Press Association