TGI Fridays, the popular restaurant chain, has reached an agreement to compensate its employees who were recently laid off, despite earlier claims that no payments would be made.

This week, over 1,000 employees lost their jobs when 35 TGI Fridays locations were closed as part of a failed rescue attempt by a private equity firm. Many workers learned of their redundancy during a video call from corporate headquarters, with only an hour’s notice. Others discovered their job loss through social media or found their workplaces padlocked, with their personal belongings still inside.

Fortunately, approximately 2,400 jobs were preserved in a buy-out involving 51 TGI Fridays restaurants, led by D&D London, known for its renowned dining establishments like Coq D’Argent and Le Pont de la Tour. Those who were let go were informed that the company claimed it “did not have the funds available” to cover owed holiday pay, final paycheck, tips, or redundancy payments.

Affected employees were told to apply for reimbursement regarding unpaid wages and instructed to wait up to six weeks for processing. In response to their treatment, many former staff voiced their dissatisfaction on TikTok and WhatsApp, while union leaders hinted at potential legal responses.

In correspondence sent to the impacted employees, TGI Fridays indicated: “Following certain asset sales made early in the administration, the company can now proceed with early settlements for some claims that might otherwise be viewed as preferential in the administration estate.

“Consequently, the joint administrators plan to allocate funds for paying past due wages (including gratuities) and accrued holiday pay through October 7, 2024. Payments should appear in your bank account by Tuesday, October 15, 2024.”

Bryan Simpson, who leads the hospitality division at Unite, the union representing the workers, stated: “Just 48 hours after notifying these employees that no payments would be made, over 1,000 TGI Fridays workers are now informed they will receive their wages, tips, and holiday pay.”

He further stated: “We will continue with legal actions to seek compensation regarding the company’s failure to properly consult with its employees.”

Despite the commitment to pay the owed amounts, many ex-employees remain discontented. Oisin, a 19-year-old who had climbed from chef to kitchen team leader over three years, expressed, “They could have prevented all of this. I am owed £1,300, and I am struggling to make ends meet.”

Oisin recounted that just two weeks prior, staff were reassured about job security amid a potential sale of the company, only to see over 1,000 jobs vanish shortly thereafter.

On Monday, upon arriving for his scheduled shift at 10 a.m., Oisin found the locks had been changed and was informed of his redundancy without any prior warning during a 1 p.m. conference call led by CEO Julie McEwan.

Chiara, another displaced employee at 24, shared, “I’ve been anxious and stressed about how to manage financially over the next few weeks and cover my travel expenses [to leave the UK]. The uncertainty regarding the payments we will receive complicates any attempts to borrow from family or friends.”

Under the government’s redundancy payments scheme, employees may claim up to eight weeks’ worth of wages if their employer becomes insolvent.

The company has opted not to comment on this situation.