Tomahawk Steakhouse returns 500 workers' pay loans

The steakhouse firm said all staff had got their money back plus 20% extra as a "thank you"

A restaurant chain which asked furloughed staff to loan it 10% of their wages, amid claims of potential sackings, has paid the money back.

Tomahawk Steakhouse asked 500 workers to lend some of their pay to cover pension and national insurance contributions. All the workers agreed.

The firm denied the claim staff might lose their jobs, but said all staff had got their money back plus 20% extra.

The GMB union said the return of the cash was a "massive win" for workers.

In a letter to staff seen by the BBC, Tomahawk, which has restaurants in York, Middlesbrough, Beverley, Newcastle, Durham and Hoxton, east London, said it had a "short-term cash flow issue and it requires your help and support".

At the time of the company's request the GMB claimed staff who refused were told their "suitability for the role will have to be reviewed".

Staff agreed to the request. Tomahawk says that money has now been returned with the 20% addition.

'Critical time'

A spokeswoman for Tomahawk said: "As part of the voluntary agreement signed by all of our staff, we promised that any monies loaned would be returned as soon as we were financially able.

"Following the budget announcement last week, we are delighted to have been able to swiftly honour that promise this week.

"All staff have now received the loaned amount, along with an additional 20%, as a thank you for supporting the business at this critical time."

GMB regional secretary Neil Derrick said it was an "abuse of the furlough scheme"

GMB regional secretary Neil Derrick said: "This was always an outrageous exploitation of both the furlough scheme and low paid, young workers.

"The cash should never have been taken in the first place as no employee can afford a further reduction in their take home pay - especially when it's to cover their employer's own obligations.

"Tomahawk's bullying behaviour was rightly condemned across the board. Their U-turn is a massive win for workers."

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