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Mothercare Office Workers Unpaid After Being Made Redundant

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Redundant head office staff at Mothercare have not been paid their wages, as a result of the company going into administration.

Mothercare UK’s employees were due to be paid on 8th November, however, those that were told to clear their desks and leave at head office on Wednesday (6th November) have not received their pay. Office and retail staff working for Mothercare in the UK are normally paid every four weeks on Friday, rather than monthly.

To the laid-off staff based in Watford, this was not a surprise as administrators PwC told them in a meeting on Wednesday morning that their contracts were terminated the day before and they would not be paid on Friday. Instead, administrators said those affected must apply to the Redundancy Payment Service (RPS) and make a claim from the National Insurance fund for unpaid wages and notice. However, the administrators then stated that they will set aside money for when, as they expect, RPS rejects their requests. Leaving redundant staff not knowing when they will receive the money for which they have worked. It could potentially be weeks or even months before they get what is owed to them.

The meeting was conducted by PwC administrators but Mark Newton-Jones, CEO of Mothercare plc was also present. He did not respond to questions from employees regarding the immediate financial difficulties they will face now that they have been left unpaid for the last four weeks of work.

On Wednesday, the Daily Mail reported that Mothercare’s bosses had been handed bonuses of over £560,000 just months before the company’s collapse. Mark Newton-Jones received £158,000, raising his total pay to £660,000. Chairman Clive Whiley took £240,000, which gave him £696,000. Chief Financial Officer Glyn Hughes was handed £163,000, leaving him with a year end score of £528,000 before seeing the UK division become insolvent.

Store staff are also facing redundancy, however, those that will be kept employed for the short term have been paid. Administrators will need store staff to carry-out the closing down sales that will attempt recovery some of the money owed to creditors.

Closing down sales began in all 79 stores today, with most discounts being in the range of 10 to 20 percent off. Deeper discounts will be applied as the closing down sale progresses. Consultancy firm Gordon Brother are overseeing the sale, which will also include the selling-off of shop fittings and furniture.

 

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