Body Shop admits breaching duty to employees with ‘brutal’ last-minute mass sacking

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The Body Shop has acknowledged violating employment law by abruptly terminating the employment of hundreds of individuals, as reported by The Independent.

Administrators for the struggling cosmetics company terminated approximately 270 head office employees last Tuesday, informing them via Microsoft Teams that they would not receive payment beyond that day and would not be provided with any redundancy package.

Instead, the dismissed employees, some of whom had been with the company for over a decade, were instructed to seek unpaid wages and holiday pay from the taxpayer-funded Redundancy Payments Service. An additional 489 job losses and 75 store closures were announced on Thursday.

Employees who were abruptly dismissed on last week’s “brutal” Teams call expressed that the sudden termination by Body Shop International Ltd was having financial and mental impacts. One employee shared with The Independent that they were left “on the verge of losing everything by a company that once valued ethics and community.”

Among those affected were at least 15 women on maternity leave or expecting soon, who will now only receive government maternity pay rather than the packages they were previously offered as Body Shop employees.

One woman stated, “The good maternity package at [the Body Shop] is what kept me going when I found out I was pregnant, and I know it’s the same for other moms.” Another woman mentioned the “massive financial strain” the situation has put on her family weeks before she is due to have her baby.

One employee, who had been with the company for 13 years, expressed that the sudden loss of pay meant their February wages would not cover their family’s expenses. They described the impact as taking a toll on many affected individuals.

Another employee, who considered it their “dream job” when hired in March, expressed being on the brink of losing everything by a company that once prioritized ethics and community, stating, “Never in my working life have I ever been treated like this before.”

They have applied for jobseeker’s allowance, a council tax reduction, and mentioned plans to request their mortgage provider for a six-month interest-free period to maintain their housing. They expressed disbelief at how the company could treat them in such a manner.

In response to an email campaign by dismissed workers, administrators from FRP Advisory admitted that they did not follow standard regulations for consulting employees or their representatives before the dismissals, citing insufficient time.

Solicitor Nick Humphreys of Penningtons Manches Cooper noted that the administrators’ response indicated a breach of duty to employees. Employment lawyer Tina Maxey highlighted that companies in financial distress often overlook employee rights due to the pressure to maximize returns for creditors.

Solicitor Michael Newman of Leigh Day questioned the balance between creditors and employees in the law, particularly in situations like the Body Shop’s recent mass firings. He remarked on the company’s departure from its ethical roots.

Ms. Maxey emphasized that failure to consult employees properly is a breach of their rights but not a criminal offense, allowing the company to choose whether to engage in collective consultation. Employees can seek compensation through a tribunal if not consulted adequately.

The Insolvency Service stated it was collaborating with Body Shop administrators to expedite employee claims processing and payments. FRP Advisory has been contacted for comment.