Coronavirus: Hays Travel cuts up to 878 jobs | Economic news

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Hays Travel will cut up to 878 jobs out of a workforce of 4,500, the company said.

Owners John and Irene Hays blamed government advice on all non-essential travel to Spain and changes in leave conditions, saying those two things left them with no choice.

They said, “We are sorry that after all of our efforts and the huge investment we have made, we are now facing the loss of some of our valued employees through no fault of their own.

“Following the decision to ban travel to Spain and the changes in leave conditions to come at the same time, we had no choice. ”

The job retention system was put in place to avoid massive layoffs at worst. coronavirus pandemic.

When it started in March, the government covered 80% of monthly staff salaries up to £ 2,500 – but that support is expected to decline, although some businesses are still not allowed to reopen.

This month, employers must start paying national insurance and pension contributions for their staff. In September, companies will have to pay 10% of the wages of employees on leave, which will rise to 20% in October before the program ends.

The Chancellor also proposed giving employers a £ 1000 bonus for each worker brought back from leave and employed until January of next year, but critics have warned these incentives “appear too small to be effective given the uncertainty surrounding the economic outlook.”

Accumulating misery for travelers and travel agencies, the government removed Spain’s preferential holiday status at the end of last month, meaning those returning to Britain from the popular tourist destination must now self-isolate for 14 days.

The Foreign and Commonwealth Office has also updated its travel tips for Spain, advising against all non-essential travel within the country, including the Balearic and Canary Islands.

John and Irene Hays said they were “devastated” by the job losses and would do “whatever we can in consultation” to help those affected.

They also promised to “focus on retaining as many people as possible and restoring consumer confidence through our renowned, friendly and knowledgeable customer service.”

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