Pizza Hut has announced it will close 68 eat-in restaurants and 11 delivery sites in the UK after the firm operating them fell into administration.
The closures are predicted to affect over 1200 workers who are now at risk of redundancy.
Adam Pennington, Partner in the employment law team at Stephensons said:
“The announcement that Pizza Hut’s UK dine-in business has entered administration is deeply concerning, particularly for the more than 1200 employees now facing uncertainty about their future. In cases like this, it’s vital that workers are fully informed of their rights and that employers and administrators follow the correct legal procedures.
“Employees affected by redundancy must be properly consulted and given clear information about notice periods, redundancy pay, and any outstanding entitlements. Where a pre-pack administration is involved, as it is here, there may also be questions around the application of TUPE regulations and whether employment transfers are protected.
“It is to be hoped that the administrator is able to rescue the business as a going concern. However, in the event redundancies are necessary, given the potential scale of job losses, it may well be necessary for employees to apply to the Redundancy Payment Service (RPS) to claim their redundancy, notice and holiday payments in the event Pizza Hut is unable to cover those costs.
“At Stephensons, we have assisted hundreds of employees from various sectors in making such applications to the RPS.”
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