London Daily

Focus on the big picture.
Friday, Mar 20, 2026

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
Apple issues an unusual warning: this is how your iPhone can be hacked without you doing anything
UK and Nigeria Reach Agreement to Accelerate Return of Irregular Migrants
UK Sets New Aid Priorities Following Significant Budget Reductions
Cyprus President Urges Open Dialogue Over Future of British Sovereign Base Areas
Cyprus President Urges Open Dialogue Over Future of British Sovereign Base Areas
UK Plans 50% Steel Tariffs in Bold Move to Protect Domestic Industry
Iran Conflict Sends Shockwaves Through UK Economy as Energy Costs and Trade Risks Surge
UK Health Officials Warn Kent Meningitis Outbreak Still Active as Cases Continue to Rise
UK Climate Progress Faces Scrutiny Over Reliance on Carbon Accounting Methods
UK Deploys Advisers to United States to Shape Plan for Reopening Strait of Hormuz
Amazon Bets on AI-Driven Alexa Upgrade to Revive UK Smart Speaker Market
UK Abortion Law Changes Spark Strong Response from Church Leaders and Pro-Life Advocates
UK Abortion Law Changes Spark Strong Response from Church Leaders and Pro-Life Advocates
GB News Faces Regulatory Complaints Over On-Air Remarks on ‘Genocide’ Claims
UK Signals Expanded Support for Gulf Allies as Iranian Attacks Intensify Regional Threats
UK VAT Decision Opens Path for Potential Refunds to U.S. Biopharma Firms
UK and Canada Advance ‘Middle Power’ Strategy to Shape Global Influence Beyond Superpowers
Google Explores AI Opt-Out Features in Search to Address UK Regulatory Concerns
Google Explores AI Opt-Out Features in Search to Address UK Regulatory Concerns
UK Fuel Prices Poised to Surge as Global Tensions Drive Oil Market Volatility
UK Fuel Prices Poised to Surge as Global Tensions Drive Oil Market Volatility
UK Holds Back on Hormuz Escort Mission While Continuing Talks with Allies
TrumpRx Pricing Platform Faces Scrutiny as Some Medicines Remain Costlier Than in the UK
UK, Netherlands and Finland Explore Joint Defence Investment Bank to Boost Military Capability
Deadly Meningitis Outbreak in Kent Raises Alarm as Cases Surge and Emergency Response Expands
UK Security Adviser Viewed US-Iran Nuclear Deal as Within Reach Before Sudden Escalation
UK Prime Minister Urges Continued Focus on Ukraine Amid Escalating Iran Conflict
UK Introduces New Safeguards to Shield Lenders from Bank Run Risks
UK Promotional Products Market Surpasses £1.3 Billion as Demand Strengthens in 2025
Reeves Pushes for Deeper UK-EU Economic Ties to Revive Growth
UK Security Adviser Saw No Imminent Iranian Nuclear Threat Days Before War Erupted
France Signals Warm Welcome for UK Return to EU Single Market Amid Renewed Cooperation Talks
UK Defence Official Criticises Boeing Over Delays to E-7 Wedgetail Programme
UK Urged to Secure Quantum Talent as Minister Warns Against Repeating AI Setbacks
UK Mayors Set to Gain New Spending Powers Under Reeves’ Fiscal Devolution Plan
Western Allies Urge Restraint as Israel Weighs Expanded Ground Operation in Lebanon
Trump Warns NATO Faces ‘Very Bad’ Future Without Stronger Allied Support in Iran Conflict
UK Minister Says Britain Not Bound to Support Every Demand From U.S. President
Starmer Tells Trump Britain Will Not Be Drawn Into Wider Iran War
Starmer Tells Trump Britain Will Not Be Drawn Into Wider Iran War
UK Set to Introduce Steel Tariffs of Up to 50 Percent in New Industrial Strategy
European Governments Decline Trump’s Call to Send Warships to Reopen Strait of Hormuz
Fears Over Iran Conflict Weigh on UK Consumer Confidence
Starmer Says UK Working With Allies on Hormuz Shipping Plan After Trump Raises Pressure
Iran War and Energy Shock Shake Britain’s Economy and Political Debate
Deadly Meningitis Outbreak at UK University Leaves Two Dead and Several Seriously Ill
Deadly Meningitis Outbreak at UK University Leaves Two Dead and Several Seriously Ill
King Charles and Queen Camilla Share Personal Tributes to Their Mothers on UK Mother’s Day
Prince William Honors Princess Diana with Mother’s Day Tribute
UK Economy Stalls in January as Households Cut Back on Eating Out
×