Am I going to be made redundant?
As an Team Member of the company, you will receive a letter from the Administrators upon their
appointment. The Administrators (or their representatives) will also be in contact with you regarding your
future employment. If you have not heard, please contact your line manager who will escalate
the matter to the HR team.
No stores have been closed by the Administrators and all sites remain open for trading at present. The
Administrators will manage the store trading strategy whilst also evaluating the options regarding the
company’s future and determining how to obtain the best possible outcome for all creditors. It remains
to be decided if some or all the stores will be closed, however, while the Administrators evaluate their
options, they will begin to implement an orderly wind‐down of the company’s store portfolio. Team
Members will be kept informed of relevant developments.
Will I get paid for the work that I do?
Yes. All wages have been paid up to the date of the administration. Team Members will be paid for all
future work which they carry out, under the terms of their contract of employment with the company.
What happens if I’m made redundant?
As you will be paid for the work which you have done, you will not have any claim for unpaid wages.
However, depending on the specific circumstances, you may have claims against the Redundancy
Payments Service (“RPO”) which will be paid to you direct subject to statutory limits and a balancing claim
in the Administration for certain unpaid benefits, including:
- Statutory redundancy pay:
You must have two years’ continuous employment with the Company to qualify for statutory
redundancy pay. The number of weeks used to calculate your redundancy payment depends on
your age and length of service. Statutory claims are paid to you by the RPO.
- Statutory Redundancy is currently capped at £489 per week (in Northern Ireland it is £500)
and will increase to £508 for any redundancies arising after 6 April 2018.
The following websites provide details on
a) Claiming for redundancy and monies owed ‐ https://www.gov.uk/claim‐redundancy
b) The calculation of your redundancy pay ‐ https://www.gov.uk/calculate‐your‐
redundancy‐pay orhttps://www.nidirect.gov.uk/articles/redundancy‐pay in Northern Ireland.
- Payment in lieu of notice:
If you have not worked your statutory notice or did not get any statutory notice from the company, you can make a claim at the statutory limit against the RPO for payment in lieu of notice (statutory notice pay). Any sums due to you above the statutory limit will be an unsecured claim in the administration which means that you are able to submit your claim to the administrators and may be entitled to a “dividend”, if the assets sold in the administration generate sufficient funds.
Statutory notice is calculated as a week for every completed year of service up to a maximum of 12 weeks. The payment in lieu of notice is calculated using your contractual hours; where you do not have typical hours, it is calculated as an average over the previous 12 weeks in which you received pay. You are under a legal duty to reduce your claim for payment in lieu of notice as much as possible. You should claim any jobseekers allowance or other benefits to which you are entitled and try and obtain other employment as quickly as possible.
- Unpaid wages
Unpaid wages will be paid by the Company. Therefore, it is anticipated that Team Members will not have claims for arrears of pay.
- Holiday Pay
The move of the company from a CVA to an Administration means that Team Members cannot claim for arrears of holiday pay from the RPO. Any holiday pay accrued after the date of the CVA will rank as a preferential claim in the administration. Preferential claims will be calculated on behalf of Team Members by the Administrators and are expected to be paid in full in due course.
- Unpaid Expenses
Pre-administration expense submissions received by Sunday 4 March 2018 will be reviewed and paid in line with the Company’s expense approval and payment policy. We strongly encourage anyone with unsubmitted expense claims to submit these as soon as possible.
Pre-administration expenses not received by Sunday 4 March 2018 will rank as an unsecured claim in the administration. These cannot be claimed from the RPO. You will need to submit a proof of debt form to the Administrators.
Any expenses which are incurred during the period of the administration should be authorised in advance by the Administrators. Authorised expenses will be reimbursed. A failure to obtain prior consent is likely to result in those expenses being unpaid.
How am I paid by the RPO?
Any claims paid by the RPO are paid directly into your bank account. On average claims are paid within 6 weeks of being submitted.
You can also contact the RPO by email at email@example.com or telephone: 0330 331 0020 Monday to Friday, 9am to 5pm.
How long will any consultation period last?
The legislation provides that where between 20 and 99 redundancies are proposed in any single location, a 30 day consultation period should be completed. Where there is a need to make more than 100 redundancies within a period of 90 days in a single location, a period of 45 days of consultation is required. Whilst it is intended that the full consultation period is fulfilled, there may be exceptions to these timescales and where circumstances dictate that redundancies take place sooner than the normal timescales allow, the Team Member representatives will be notified.
How many Team Member representatives are required?
There are no set rules to this but there must be sufficient representatives to represent the interests of all of the affected Team Members in that location. It is therefore expected that there will be considerably more Team Member representatives elected within the Head Office and the Distribution Centre than within the individual stores. Further information will be provided to you in your location as soon as possible by the HR team.
What happens to my final salary pension?
The defined benefit (final salary) pension scheme has entered an assessment by the Pension Protection Fund (“PPF”). During the assessment period, the Scheme Trustees will remain in day-to-day control of the scheme and your payments. If the PPF ultimately takes on responsibility for a Scheme, they will pay compensation to Scheme members. The following link contains further information:
What happens to my defined contribution pension?
As your defined contribution pension is administered by a third party, you can continue to access your information in the normal way. If deductions have been made from your wages by your employer and not paid over to the pension company, these (together with any unpaid employer’s contributions) can be claimed from the RPO.
When will P45s and final payslips be provided?
If you are made redundant, we will endeavor to send these out as soon as practically possible.
What is the holiday policy?
Holiday allowances will begin to accrue from the date of the administration, which means that any holidays taken during the administration are likely to be unpaid. We therefore strongly encourage employees not to take holiday at this time.
If I have booked upcoming holiday can I still take it?
Any pre-booked holidays should be discussed with your HR contact. As noted above, it is likely that any holidays taken during the Administration will be unpaid.
Can I book holiday?
We strongly encourage employees not to take holiday at this time. As noted above, it is likely that any holidays taken during the Administration will be unpaid. If you still wish to book holiday, you should discuss this with your normal HR contact.
Are Team Members permitted time off for interviews?
Please arrange interviews around your working hours. If this is not possible, please discuss this with your line/store manager. This will be reviewed on a case-by-case basis.
How much notice will we be given if our store/department closes?
The Administrators will endeavor to provide Team Members with as much notice as possible regarding any store/department closures.
Will I continue to receive additional benefits for my notice period, such as Life Cover?
No. Should you wish to transfer these benefits then they should contact the Company or the Administrators.
I receive a car allowance each month. Will I be able to claim this from the redundancy payments service?
You will only be able to claim for car allowance if it is provided for in your contract and relates to a specific time.
I sometimes work overtime and also receive bonuses and commission. Can I claim for these?
You will only be able to claim for these if they are contractually payable and relate to a specific time.
I was on maternity leave before I was made redundant. Will I be able to claim for maternity pay?
Team Members are unable to claim for unpaid maternity pay from the Redundancy Payments Service under the insolvency rules. You can however claim maternity pay from Her Majesty’s Revenue and Customs.
Am I able to claim for sick pay?
Team Members are unable to claim for unpaid sick pay from the Redundancy Payments Service under the insolvency rules. You can however claim sick pay from the Department of Work and Pensions.
Will any tax be deducted from payments due to me?
Yes. The Redundancy Payments Service will deduct from any wages and holiday pay awarded to you an amount of income tax at the basic rate in force at the time payment is made. Your share of National Insurance Contributions will also be deducted from the payment.
Who will provide my reference?
The Administrators will endeavor to provide references to Team Members when requested. Please note that only basic references can be provided.
If you require a reference please contact UKHRadministration@toysrus.com
Where can I go for support?
JobCentre Plus, through its Rapid Response Service, is ready to support any employee affected by redundancy.
Support could include:
- • helping people facing redundancy to write CVs and find jobs
- • providing general information about benefits
- • helping people to find the right training and learn new skills
- • helping with costs like travel to work expenses.
In Scotland, redundancy support is provided through the Scottish Government’s Partnership Action for Continuing Employment (PACE) initiative.
The PACE Redundancy Helpline 0800 917 8000 is operated by Skills Development Scotland or help is available at www.redundancyscotland.co.uk.
In Wales, the service is delivered by the ReAct scheme.