A nightclub company has been ordered to pay thousands of pounds to former staff members who were made redundant after venues were closed during the pandemic.
NP Clubs Ltd, which managed a number of popular live venues and clubs in Newport, has been ordered to pay compensation, redundancy payments, holiday entitlements, wage deductions, pension contributions and damages to some former staff members by an employment tribunal.
Businessman Iftekhar 'Iffy' Harris, director of NP Clubs, announced the immediate closure of The Courtyard, Cotton Club, Blind Tiger, Mojos, and The Lounge, all located on Cambrian Road in the city, in October 2020. At the time Mr Harris, who has managed venues in Newport for over two decades, said his clubs were "making huge losses" and that it had become "impossible to continue." Both Courtyard and Blind Tiger later reopened under the name Bloc, with Mr Harris telling WalesOnline at the time he had leased the buildings to new investors to run day-to-day. That club announced its closure on December 31 last year.
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According to a written judgement by an employment tribunal on February 1, NP Clubs Ltd made an unauthorised deduction from former staff member Christina Watts' wages and has been ordered to pay her £107.63. The tribunal said Ms Watts, who worked for NP Clubs for around five years in total, was dismissed in breach of contract in respect of notice, and ordered NP Clubs to pay her damages of £917.31.
They also said the company failed to pay her holiday entitlement and ordered them to pay Ms Watts £1,021.27. They also ruled NP Clubs breached Ms Watts' contract of employment by deducting employee pension contributions and failing to pay it to the pension provider, and an order was made to repay her £585.52.
Ms Watts has also been awarded £11,012.71 in compensation which encompasses £9,971.09 in lost earnings, £728 in lost statutory rights and £313.62 in lost pension. NP Clubs was also ruled to be in breach of their duty to give a written statement of initial employment particulars and ordered to pay the claimant £728. In total NP Clubs must pay Ms Watts £14,372.44.
Speaking to WalesOnline, Ms Watts said she has "not received a penny" of the money since the tribunal three months ago. She claimed that she and her solicitor had contacted NP Clubs offering a settlement sum before the case proceeded to tribunal, but that this had received no response.
"I did say I was happy to keep it quiet [at the start]," she explained. "My solicitor told me to keep it quiet and then he said it was time to go public. I think we offered around £12,500, so the tribunal is a lot more than we thought we would even get.
"I was shocked [at the outcome of the tribunal]. To be honest, I just wanted what I was owed. My redundancy and holidays. I worked there for a long time, I always stuck with them and was always one of the first to fight their corner. I knew that during Covid wasn't easy [for the business] but I didn't expect the way we were dismissed."
In January 2021, WalesOnline reported that Ms Watts along with other former NP Clubs staff received a letter by email informing them of their redundancy with immediate effect in October 2020. The statutory notice period for an employee with three years' service is three weeks. It was also found NP Clubs Ltd had received a £92,500 Welsh Government grant which was aimed at "safe-guarding jobs" shortly before staff were dismissed.
At the time, Mr Harris accepted that his employees were not given any notice period prior to being made redundant. He also accepted that staff had not received pension contributions for some months in 2020, redundancy pay or received money for holiday pay accrued during their employment. Mr Harris claimed the £92,500 grant was insufficient to protect the jobs in his company and that "the money has been spent."
Ms Watts said she had decided to go public now due to the fact she has received no money or correspondence from Mr Harris' company and that she felt let down as a loyal ex-member of staff at the nightclubs.
"I never got my P45," she said, referring to the form employees get after they are made redundant. "My pension still hasn't been paid - either their contribution or mine. I don't mind so much about their contribution because I knew the company was struggling, but mine hasn't been paid either."
Ms Watts, who has worked in other jobs since and recently received a promotion in her office job, added that the experience had caused her and her partner financial hardship. "We had to work out how to pay our bills with little children. It was in the run-up to Christmas and you had to think about presents which to many are not important but for kids, they are. My partner works and I am not entitled to any benefits."
She added that she feared what happened to her may happen to others. "I feel disappointed. I was angry originally but I realised how badly we were treated [working at NP Clubs.] I was telling my solicitor who said I should have left years ago. I think I'm concerned with making sure it doesn't happen to other people. I think he should pay everybody what they're owed."
A number of other former NP Clubs employees have also been awarded thousands of pounds as a result of tribunal decisions. A separate decision, also published on February 1, 2023, found NP Clubs Ltd made an unauthorised deduction from former staff member Lisa Ferrell's wages and has been ordered to pay her £4.88. The tribunal said Ms Ferrell was dismissed in breach of contract in respect of notice, and ordered NP Clubs to pay her damages of £1,432.20.
They also said the company failed to pay her holiday entitlement and ordered them to pay Ms Ferrell £355.88. They also ruled NP Clubs breached Ms Ferrell's contract of employment by deducting employee pension contributions and failing to pay it to the pension provider, and ordered them pay her £199.79.
Ms Ferrell has also been awarded £2,204.66 in compensation which encompasses £1,848.84 in lost earnings, £260.40 in lost statutory rights and £95.42 in lost pension. NP Clubs was also ruled to be in breach of their duty to give a written statement of initial employment particulars and ordered to pay the claimant £260.40. In total NP Clubs must pay Ms Ferrell £4,457.81.
Two other ex-staff members were also awarded sums of money in separate tribunals in 2021. On July 21, 2021 the tribunal ordered NP Clubs to pay Collette Meredith a total of £2,979.62, ruling that Ms Meredith was was dismissed by reason of redundancy and was entitled to a redundancy payment of £2,092.80, as well as £886.82 in holiday entitlement. Ms Meredith confirmed to WalesOnline this week she had yet to receive the money almost two years since the tribunal took place.
On July 13, 2021, a tribunal ruled NP Clubs made an unauthorised deduction from former staff member Jamie Buchanan’s wages and it was ordered the company pay her £133.30. The tribunal said Ms Buchanan, who worked for NP Clubs for almost two years, was dismissed in breach of contract in respect of notice, and ordered NP Clubs to pay her damages of £174.40. They also said the company failed to pay her holiday entitlement and ordered them to pay Ms Buchanan £558.08. Ms Buchanan told WalesOnline she had received the money awarded to her, except for her pension. In total, former staff of NP Clubs are owed £21,809.87.
Mr Harris told WalesOnline he had offered all of the staff involved in the tribunals alternative roles within his business when his clubs were unable to open. But he claimed these had not been taken up, adding that the company "doesn't have any money" and was not currently receiving any income. NP Clubs Ltd remains listed as active on Companies House with Mr Harris as director.
"Just because it is active doesn't mean it is trading," he said. "The company doesn't have any income without business. There's nothing I can say. You have to have a few grand to make the company insolvent, and so the government would pay back their money. The company doesn't have money to go insolvent."
Mr Harris said he had done "everything he could" to keep his business afloat but that the Covid pandemic had "ruined his business" as well as criticising government policy on the furlough scheme, which allowed workers to claim furlough money for one job while working a second job as normal. He said he would also not be in a position personally to pay his former staff and added that he felt the tribunal awards were "unfair".
"The sums that have been given are unfair," he said. "I didn't contest them because I don't have the money to.
"I believe in the law and what is right. People are entitled to redundancy. It's perfectly fair. But they were offered jobs and they didn't take them. I did all I could for people to continue to work."
Mr Harris added that he felt the former staff members were "playing the victim" and "playing the game" by going to a tribunal, and added: "The victim is the company." He said he would put the money into the business to make it insolvent if he was able to, but said: "I don't want to spend another penny on the business. Covid ruined my business and the industry continues to be difficult."
Mr Harris said the pandemic and other issues had impacted him personally in recent years and said he felt the situation was "like a witchhunt." Asked if he felt any regret about former staff being owed money, he replied: "I regret that they took that action and didn't continue to work."
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