London Daily

Focus on the big picture.
Tuesday, Sep 16, 2025

Tomahawk Steakhouse staff told 'loan firm 10% or they could face sack'

Tomahawk Steakhouse staff told 'loan firm 10% or they could face sack'

A restaurant chain has asked furloughed employees to loan the firm part of their wages or possibly face the sack, a union claims.

Tomahawk Steakhouse wants staff to sign an agreement to lend 10% of their pay to cover pension and national insurance contributions, the GMB Union says.

Staff who refuse have been told their "suitability for the role will have to be reviewed", it is claimed.

Tomahawk has denied the claim staff were told they might lose their job.

In a letter to staff seen by the BBC, Tomahawk, which has restaurants in Yorkshire and the north east of England and recently opened a branch in London, says it has a "short-term cash flow issue and it requires your help and support".

It says that as it must make the National Insurance and pension payments itself the "only viable alternative is to ask for your agreement to a loan arrangement".

It adds that the interest-free loan will be repaid "once the lockdown is eased sufficiently for the company to trade".

GMB regional secretary Neil Derrick said it was an "abuse of the furlough scheme"
GMB regional secretary Neil Derrick said: "It's never been easier or cheaper for businesses to borrow money than it is at the moment during the pandemic, but this business, Tomahawk, want it for free and they have solved their cash flow problem by giving a cash flow problem to their staff.

"It stinks and we think it is an abuse of the furlough scheme, we think it is an abuse of the job retention scheme and we've asked HMRC to investigate.

"Staff have been told that if they do not agree to the loan agreement their suitability for the role will have to be reviewed, and we all know what that means, that's a threat of dismissal."

Tomahawk has branches in places including York, Middlesbrough, Beverley, Newcastle, Durham and Hoxton, in east London.

'Very angry'


One member of staff, who did not want to be identified, said employees had been told about the proposal via video call.

"I logged on to the meeting and they explained that we would have to sign a new contract," they said.

"They said if you don't sign it we will have to see if this job's right for you.

"It made me very angry. Everybody is already worried about money, but then to be taking more off us for the company when the company has just opened a new restaurant in London, surely they must have money behind them rather than just relying on staff to give them a loan."

Rachael Maskell MP wrote to the Treasury to raise the matter

Labour MP for York Central Rachael Maskell has described the company's behaviour as "disgraceful".

She said: "If it isn't illegal it certainly is immoral and it is certainly punitive to the staff that they employ."

In a response to a written question tabled by Ms Maskell, Treasury Minister Jesse Norman said employers are required to pay staff "all the Coronavirus Job Retention Scheme (CJRS) grant they receive from HMRC to cover 80% of wages" and "cannot enter into any transaction with the worker which reduces the wages below the amount claimed".

A spokesperson for Tomahawk said: "At no point has Tomahawk Steakhouse suggested that members of staff would be sacked if they did not sign a loan agreement."

As with the rest of this hospitality industry, they said they had faced a "challenging year" but that the company's priority was to "protect our people and our business".

They said since putting the proposal forward "every single employee chose to sign up to this agreement."

A spokesman for HMRC said it would "support any taxpayer in financial distress as a result of Covid-19 and we would urge any employer that may struggle to pay its outstanding tax liabilities to contact us as soon as possible."

He encouraged anyone concerned their employer "might be abusing the scheme" to contact HMRC.

Newsletter

Related Articles

0:00
0:00
Close
U.S. and Britain Poised to Finalize Over $10 Billion in High-Tech, Nuclear and Defense Deals During Trump State Visit
China Finds Nvidia Violated Antitrust Laws in Mellanox Deal, Deepens Trade Tensions with US
US Air Force Begins Modifications on Qatar-Donated Jet Amid Plans to Use It as Air Force One
Pope Leo Warns of Societal Crisis Over Mega-CEO Pay, Citing Tesla’s Proposed Trillion-Dollar Package
Poland Green-Lights NATO Deployment in Response to Major Russian Drone Incursion
Elon Musk Retakes Lead as World’s Richest After Brief Ellison Surge
U.S. and China Agree on Framework to Shift TikTok to American Ownership
London Daily Podcast: London Massive Pro Democracy Rally, Musk Support, UK Economic Data and Premier League Results Mark Eventful Weekend
This Week in AI: Meta’s Superintelligence Push, xAI’s Ten Billion-Dollar Raise, Genesis AI’s Robotics Ambitions, Microsoft Restructuring, Amazon’s Million-Robot Milestone, and Google’s AlphaGenome Update
Le Pen Tightens the Pressure on Macron as France Edges Toward Political Breakdown
Musk calls for new UK government at huge pro-democracy rally in London, but Britons have been brainwashed to obey instead of fighting for their human rights
Elon Musk responds to post calling for the murder of Erika Kirk, widow of Charlie Kirk: 'Either we fight back or they will kill us'
Czech Republic signs €1.34 billion contract for Leopard 2A8 main battle tanks with delivery from 2028
USA: Office Depot Employees Refused to Print Poster in Memory of Charlie Kirk – and Were Fired
Proposed U.S. Bill Would Allow Civil Suits Against Judges Who Release Repeat Violent Offenders
Penske Media Sues Google Over “AI Overviews,” Claiming It Uses Journalism Without Consent and Destroys Traffic
Indian Student Engineers Propose “Project REBIRTH” to Protect Aircraft from Crashes Using AI, Airbags and Smart Materials
French Debt Downgrade Piles Pressure on Macron’s New Prime Minister
US and UK Near Tech, Nuclear and Whisky Deals Ahead of Trump Trip
One in Three Europeans Now Uses TikTok, According to the Chinese Tech Giant
Could AI Nursing Robots Help Healthcare Staffing Shortages?
NATO Deploys ‘Eastern Sentry’ After Russian Drones Violate Polish Airspace
Anesthesiologist Left Operation Mid-Surgery to Have Sex with Nurse
Tens of Thousands of Young Chinese Get Up Every Morning and Go to Work Where They Do Nothing
The New Life of Novak Djokovic
The German Owner of Politico Mathias Döpfner Eyes Further U.S. Media Expansion After Axel Springer Restructuring
Suspect Arrested: Utah Man in Custody for Charlie Kirk’s Fatal Shooting
In a politically motivated trial: Bolsonaro Sentenced to 27 Years for Plotting Coup After 2022 Defeat
German police raid AfD lawmaker’s offices in inquiry over Chinese payments
Turkish authorities seize leading broadcaster amid fraud and tax investigation
Volkswagen launches aggressive strategy to fend off Chinese challenge in Europe’s EV market
ChatGPT CEO signals policy to alert authorities over suicidal youth after teen’s death
The British legal mafia hit back: Banksy mural of judge beating protester is scrubbed from London court
Surpassing Musk: Larry Ellison becomes the richest man in the world
Embarrassment for Starmer: He fired the ambassador photographed on Epstein’s 'pedophile island'
Manhunt after 'skilled sniper' shot Charlie Kirk. Footage: Suspect running on rooftop during panic
Effective Protest Results: Nepal’s Prime Minister Resigns as Youth-Led Unrest Shakes the Nation
Qatari prime minister says Netanyahu ‘killed any hope’ for Israeli hostages
King Charles and Prince Harry Share First In-Person Moment in 19 Months
Starmer Establishes Economic ‘Budget Board’ to Centralise Policy and Rebuild Business Trust
France Erupts in Mass ‘Block Everything’ Protests on New PM’s First Day
Poland Shoots Down Russian Drones in Airspace Violation During Ukraine Attack
Brazilian police say ex-President Bolsonaro had planned to flee to Argentina seeking asylum
Trinidad Leader Applauds U.S. Naval Strike and Advocates Forceful Action Against Traffickers
Kim Jong Un Oversees Final Test of New High-Thrust Solid-Fuel Rocket Engine
Apple Introduces Ultra-Thin iPhone Air, Enhanced 17 Series and New Health-Focused Wearables
Macron Appoints Sébastien Lecornu as Prime Minister Amid Budget Crisis and Political Turmoil
Supreme Court temporarily allows Trump to pause billions in foreign aid
Charlie Sheen says his father, Martin Sheen, turned him in to the police: 'The greatest betrayal possible'
Vatican hosts first Catholic LGBTQ pilgrimage
×