Sports Direct facing multi-million pound bonus claim from zero-hours staff

Sports Direct is facing a claim for millions of pound from nearly 300 workers who were excluded from the retailer’s bonus scheme because they were on zero-hours contracts.

Sports Direct has a branch in Rochdale located on Kingsway Retail Park. It is currently unclear if any of those claiming are from the Rochdale branch.

The scheme paid out around £160m to 2,000 'permanent' workers in 2013 and is due to pay out to a further 3,000 employees this summer and again in 2017.

It is understood that individual claims average around £36,000 each but the highest is worth more than £100,000.

The overall claim to Sports Direct could amount to over £10m if all of those affected claim the average of £36,000.

Leigh Day, the law firm acting on behalf of those affected, sent letters to Sports Direct’s legal team on Friday (30 January) claiming a total of just over £1m in compensation for missed bonuses for 30 workers.

The first 30 employees seeking compensation have a minimum of five and a half years in continuous employment with Sports Direct, including the period covered by the awarded bonus.

Some staff involved with the claim have worked for the company for considerably longer, despite being employed on insecure contracts.

Letters relating to a further 268 workers are due to be filed over the next six months.

Some of the staff still work for Sports Direct and Leigh Day has called on the company to confirm that they will not be penalised or dismissed for making the claims.

If the two sides cannot reach an agreement, the claims will go to court. This will then determine whether the zero hours staff had a contractual right to the bonus awards and should be compensated.

Sports Direct has previously been criticised for employing nearly 90% of its staff on zero hour’s contracts.

Sports Direct declined to comment.