Former Zavvi staff could lose out on benefits

Former staff at entertainment chain Zavvi Retail could go without redundancy pay outs and accrued benefits they are owed after the firm went into administration last December.

According to the company's administrator Ernst & Young, the 222 staff concerned had transferred to Head Entertainment, a new chain set up in February in former Zavvi stores, when the latter went bust.

The employees were initially informed that their existing employment terms and conditions remained the same despite moving employer, under the Transfer of Undertaking Regulations (TUPE).

However, Head Entertainment later contacted the workers to tell them that TUPE did not apply, informing them that they had in fact been made redundant by Zavvi and then re-employed the next day by Head Entertainment.

This means staff will miss out on sick pay, holiday pay and notice pay entitlements. Many of the affected employees are going to employment tribunals to claim back their benefits.

A spokesperson at Ernst & Young said: "TUPE is in force to protect employees’ rights on the transfer of a business and the administrators contest that this group of Zavvi employees have transferred to Head Entertainment by operation of law."