Nearly 300 zero-hours workers claiming millions from retailer after being excluded from bonus scheme

Nearly 300 zero-hours workers claiming millions from retailer after being excluded from bonus scheme

Nearly 300 workers are claiming millions of pounds from Sports Direct after being excluded from the company’s bonus scheme as they were on zero-hours contracts.

The employees were ineligible for the bonus scheme which saw 2,000 permanent workers see a payout of £160 million in 2013.

Lawyers for the part-time staff contacted Sports Direct’s legal team recently, claiming 30 workers were owed just over £1m compensation for missing out on the bonuses .

Each claim averages about £36,000 but the greatest is worth over £100,000.

Of those making the claims, each has been employed continuously by the retailer for at least five and a half years – including the time covered by the bonus.

Letters pertaining to the remaining 268 workers are to be filed over the coming six months.

Should these claims also average £36,000 the total cost to Sports Direct will be almost £10m.

The employees are being represented by law firm Leigh Day, which has called on the retailer to give assurances its clients will not face penalties or be dismissed as a result of making the claims.

To do so, the firm said, would be unlawful as per regulations guaranteeing part-time workers’ rights.

Sports Direct must provide a response to the letters and, if the parties cannot come to an agreement, the claims will go to court where it will then be determined whether the staff had a contractual right to the bonus awards and should therefore receive compensation.

Nearly 90 per cent of Sports Direct’s staff are on zero-hours contracts.

Following legal action last year by former worker Zahera Gabriel-Abraham, the retailer now makes clear the terms of zero-hours contracts to staff and informs them that they are entitled to holiday pay as well as sick pay.

Ms Gabriel-Abraham left the company’s Croydon branch in 2013 as she suffered from panic attacks caused by a lack of financial security because the contract did not guarantee any work or income. She took legal action against the company and was supported by over 5,000 members of campaign group38 Degrees.

Sports Direct settled the case without admission of any liability.

The business secretary Vince Cable has said he plans to ban clauses that stop workers from accepting work with multiple employers.

Mr Cable launched a review to this effect in October.

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