The Independent has uncovered that The Body Shop has admitted to violating employment law by terminating the contracts of hundreds of employees with immediate effect.
Last Tuesday, administrators overseeing the troubled cosmetics company informed around 270 head office staff via Microsoft Teams that they were being made redundant, effective immediately. Shockingly, these employees were informed that they would not receive any form of redundancy package and that their salaries would cease at the end of the day.
The abrupt dismissal has left employees, some of whom had dedicated more than a decade to the company, reeling both financially and emotionally. Those affected were instructed to seek unpaid wages and holiday pay from the Redundancy Payments Service, a taxpayer-funded entity. Additionally, on Thursday, the company announced a further 489 job cuts and the closure of 75 stores.
Individuals impacted by this “brutal” decision described feeling devastated, with one employee expressing concern about the financial and mental toll it has taken. Particularly distressing are the cases of at least 15 women who were either on maternity leave or expecting soon, who will now only receive government maternity pay instead of the comprehensive packages previously offered by The Body Shop.
Responding to an email campaign launched by dismissed workers, administrators at FRP Advisory acknowledged that they failed to adhere to standard regulations regarding employee consultation prior to termination. They cited the need for swift cost reduction and their statutory duty to benefit all creditors as the rationale behind their actions.
Solicitors specializing in employment law have highlighted the breach of duty owed to employees by the administrators. Although failure to properly consult staff is not a criminal offense, affected employees can pursue compensation through a tribunal.
The Insolvency Service affirmed its commitment to facilitating employee claims for redundancy payments, ensuring that eligible individuals receive their entitlements promptly.