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The Independent has discovered that The Body Shop has confessed to violating employment regulations by abruptly firing hundreds of employees.
The administrators of the struggling makeup corporation let go of approximately 270 employees at the main office last Tuesday. They informed these employees through Microsoft Teams that they would not receive any further compensation after that day and the company would not offer any severance benefits.
Several workers who had been with the company for over ten years were laid off and instructed to seek compensation for back pay and vacation time from the publicly-funded Redundancy Payments Service. An additional 489 job cuts and closure of 75 stores were announced on Thursday.
Former employees were instructed to seek compensation for any unpaid wages and vacation pay from the federally-funded Redundancy Payments Service.
During the previous week’s “harsh” Teams meeting, employees expressed that their unexpected termination from Body Shop International Ltd was causing both financial and mental distress. One individual shared with The Independent that they were now facing the possibility of losing everything, despite the company once priding itself on strong ethical values and a sense of community.
Approximately 15 women who are either currently on maternity leave or about to give birth will no longer receive the compensation they were promised as employees of Body Shop. Instead, they will only receive government maternity pay. This information was shared by a new mother who was recently laid off.
Another woman shared, “Upon learning of my pregnancy, the generous maternity benefits offered by [the Body Shop] provided me with the motivation to continue. I recognize that this is also the case for other mothers.” This same woman expressed concern over the situation, stating, “It has caused significant financial strain for my family, especially with my due date just weeks away.”
A worker with 13 years of experience at the company shared that the abrupt discontinuation of their pay meant their February salary would not be sufficient to cover their family’s expenses. They added, “The way we have been mistreated has greatly impacted many of the affected individuals.”
One person mentioned that getting hired in March was their ultimate goal, but they ended up being on the brink of losing everything due to a company that used to prioritize values like ethics and community. They also mentioned that they had never been treated this poorly in their entire working experience.
During a recent call on Teams, employees expressed their distress over being abruptly let go by Body Shop International Ltd. They stated that this unexpected dismissal was significantly impacting them both financially and mentally.
They have applied for jobseeker’s allowance, a council tax reduction, and said they plan to ask their mortgage provider to go interest-free for six months “to keep the roof over my head”, adding: “How they can be allowed to treat us like this is beyond me, I don’t even know how they can sleep at night.”
The administrators of FRP Advisory have acknowledged that they did not adhere to standard protocols for consulting with employees or their representatives before terminating them, in response to an email campaign by the affected workers. They explained that time constraints prevented them from following proper regulations.
The administrators representing the Body Shop, in a statement viewed by The Independent, stated that they did not adequately consult with employees due to the need for a prompt reduction in head office payroll expenses. They cited their legal obligation to enact measures that would benefit all of the company’s creditors.
Attorney Nick Humphreys from Penningtons Manches Cooper stated that the email acknowledges a conflict between obligations to staff and creditors, but it seems that the administrators are accepting responsibility for not fulfilling their duty to employees.
Tina Maxey, an employment lawyer at Ellisons Solicitors, states that it is not unusual for financially struggling companies to disregard the rights of their employees. This is due to the obligation of the company’s directors to prioritize the returns for creditors.
Solicitor Michael Newman, of the firm Leigh Day, said he “would question whether the law has got the balance right between creditors and employees” in such situations, adding: “The creditors will have invested money, but the employees will have also have invested a lot of time and work in the company over the years, and it is a shame that the law prioritises creditors in this situation.”
Regarding the unexpected large-scale dismissals at the Body Shop, he remarked: “For a company that is known for its ethical values, it serves as an indication of how far they have strayed from their beginnings.”
According to Ms Maxey, neglecting to consult with staff is a violation of their rights, but it is not a crime committed by the administrators or the company. She also stated that as long as the company has informed the secretary of state about the redundancies, they can decide whether or not to engage in collective consultation.
If employees are not properly consulted, they have the option to request compensation through a tribunal. According to The Times, there is a group of over 175 employees from Body Shop who are preparing to make a claim through Acas, which is a service provided by the government for advising, mediating, and settling disputes.
The Insolvency Service has been collaborating with the administrators of Body Shop to expedite the processing and payment of employee claims. A representative stated, “The Redundancy Payments Service of the Insolvency Service will provide necessary payments for statutory redundancy and other related benefits to assist eligible employees who have been terminated.”
FRP Advisory has been reached out to for a statement.
Source: independent.co.uk
