Primark, the renowned fashion retailer, on Sunday (12 July) announced that it will not be going for the UK Government’s £30 million bonus fund.
The multi-million dollar scheme is initiated by the Government wherein it will pay the employers £30 million to help bring back the furloughed staff.
The fashion retailer had shut down it stores in March when the pandemic had started gripping Europe, thereby costing the fashion label £650 million.
All across Europe, 68,000 staff received furlough payments from Governments, without which the retail giant said it would have been compelled to make most redundant.
It has since reopened stores, including in the UK, where nearly 30,000 of its employees were furloughed.
Primark had removed its employees from Government employment support schemes in the UK and Europe in line with the reopening of the majority of its stores. Therefore, it believes, it is not mandatory to apply for payment under the ‘bonus scheme’ under current circumstances.
The scheme, which could cost up to £9 billion if employers bring back all 9 million people who were furloughed, was announced late last week.
Primark’s decision to reject the Government’s scheme is expected to put pressure on other fashion retailers as well.
Primark, which offers wide range of womenswear, menswear, kidswear, footwear and accessories among others, has over 350 stores across 12 countries. It generates revenue of £7.79 billion.