Redundant Woolworths staff are left with nothing
Tuesday 6th January 2009, 1:00PM GMT.
WOOLWORTHS staff in Guernsey have been left without redundancy pay after the shop closed down last week.
More than 70 have been put out of work following the UK chain’s collapse in November.
Mainland staff will be receiving statutory redundancy payments but, according to Woolworths administrator Deloitte, Guernsey staff will not receive any payout.
‘There is no Redundancy Payments Office equivalent in Guernsey,’ said a spokesman for Deloitte. ‘And UK statutory redundancy pay [first introduced in 1965] does not apply in the Channel Islands.’
Commerce and Employment said it was unable to comment on specific cases, but confirmed employees were not protected from redundancy.
‘There is no legislation in Guernsey providing any right to a statutory redundancy payment,’ said a spokesman.
- To read Guernsey Press stories in full click here for subscription details. Individual editions are now available online.
Island Life
All about Guernsey
Ambassador of the Year 2011
History & Heritage
Visitor Information
Guernsey's government
Campaigns
Voice For Victims
Voice for Victims is a campaign aimed at promoting the rights of those affected by child sexual abuse.
This is Guernsey
Guernsey Press
Useful Links
It is an absolute disgrace the way we have been treated. Most of the information we got was from BBC news. Even though Hilco had a representative in the store on the day the closing sale was announced, nothing was said to us until the day of the sale, we found out from the BBC 6pm News. Now we get treated like this, all the work done for them and no redundancy. No one has been permitted to speak to the press, for fear of losing their money for time worked.
Report abuse
It seems that Woolworth staff received the basic UK statutory entitlement to redundancy.
As the Article states Guernsey does not have a statutory redundancy scheme.
This means that Woolworth staff employed in Guernsey were never entitled to the UK statutory redundancy payment, and so have lost nothing, having never had the entitlement.
Ex Woolwo=rth staff should address their concerns at the clowns who have run Commerce and Employment in past years and who have rejected any attempt to introduce a statutory redundancy entitlement in Guernsey. These are the real baddies and not the Administrator.
When you consider the amount of money used in subsidising the banks market research each year through organisations such as Guernsey Finance, you can see where the priorities of the States lie.
A total disgrace.
Report abuse
Yet another failure by a States’ Department similar to the Depositors’ Protection Scheme fiasco.
Why can’t these people ever understand the priorities?
Report abuse
That is absolutely disgraceful. Some of their staff have worked at the store for many years and this is the thanks they get ! Hey its 2009…..but in the Channel Islands its still about 1909 !!!!
Report abuse
Very hard for those with no payout. Loyalty does not pay.
Report abuse
I really do feel for the Woolworths staff, not receiving any money. But please also don’t foget other companies, big or small that have had to close in the islands, through no fault of their employees. There a lot more people who have been left with nothing when a firm has shut. Indeed, a friend of mine received 100 clear plastic wallets and a fax machine. Better than nothing, but it’s not going to pay the wages. Woolworths staff – I do hope you find work elsewhere.
Report abuse
If the comment on TV last night that Guernsey staff at Woolworth did not receive any notice payment is correct, then that needs to be checked with Commerce and Employment.
Guernsey law, like that of the Uk requires minimum levels of notice.
It might be that the Adminsitrator will argue that they have received notice when it was stated the stores would close in early January.
Even in that case it would be worthwhile asking Commerce and Employment to look at any documention as Administrators make mistakes.
Report abuse
It’s not a disgrace. It’s what happens. Companies go in to liquidation and there is no redundancy. Why is this ‘story’ being gragged out. Was there redundancy stated in the employees contract? No. Therefore no redundancy.
‘Not recovering any money’? Come on eh? This isn’t Landsbanki, it’s a retailer that has been going down the tubes for years.
All of you should stop flailing around for scape goats. There is no fault – it’s what in markets.
Report abuse
1. The Legal Aspects
There are no statutory provisions in the Bailiwick that require employers to pay
employees a redundancy payment or to notify employees that redundancies may occur.
However, there may be a contractual agreement to provide redundancy pay and/or a specific notice of redundancy, and this should be honoured.
Link: http://www.gov.gg/ccm/navigation/commerce—employment/industrial-relations/codes-of-practice/
Report abuse
While i do feel sorry for these people, surely something in there contract they signed would have covered the issue of redundancy. I am not saying there definately is, but i would have thought so. I hope they find work elsewhere. And check the redundancy packages before starting a new job.
Report abuse
It’s true that there is no statutory provision for redundancy payments in Guernsey (unlike in the Uk where there is), but employers are obliged to give minimum notice periods to staff. If these were not given, then the staff are entitled to payment.
Report abuse
As for ‘notice period’. It’s irrelevent. Woolworth’s collapsed; went into administration, in the hands of the liquidators. Bankrupt, no money, gone.
I can’t draw pictures for you.
Report abuse
Why are locals so quick to put down the UK, its people and its laws but it is a different story when they want to be treated like a UK resident? Guernsey locals are so proud of their ‘independancy’, so why grizzle when this happens. Sort out your own problems. Am sure the states can pay some sort of package with all the moeny they take from non-locals. As for the ex-staff…they should have read their contract.
Report abuse
No point apportioning blame.Plenty of time for that.It is more important that immediate needs are met.Has anyone set up a hardship fund for woolies staff and others made redundant??
Report abuse
Jackie – you say
As for ‘notice period’. It’s irrelevent. Woolworth’s collapsed; went into administration, in the hands of the liquidators. Bankrupt, no money, gone.
Actually, being bankrupt doesn’t mean it has no money, just not enough to pay its debts. You will find that notice periods are NOT irrelevant. Employees who are entitled to payment in lieu of notice will find themselves as preferred creditors – they will get paif first. If they choose to claim that is!
I don’t need pictures Jackie – just a few minutes at the Greffe checking out the employment law, thank you very much!
Report abuse
i did e/mail radio guernsey presenter with an idea to set up a fund, but nothing happened, i think the generouse people of guernsey would have donated, just to show our appreciation.
Report abuse
My mother’s family came from Guernsey and my understanding is that the whole point of a low tax/low regulation economic climate is just that.
On the mainland we have a high tax, high regulation economic climate – which means a statutory redundancy fund. Did the staff not pay lower tax and NI than their mainland equivalents while they were working?
Surely it is not possible to have a low tax/high regulation/benefits structure?
If it is, please let the States and the UK parliament know how it is done.
Report abuse