Costa Coffee franchisee’s training cost deductions ‘unfair’, staff claim

Image: Shutterstock

Employees at a Costa Coffee franchise in Essex claim they have had £200 deducted from their final payslips to cover training costs.

Staff also received pay deductions for till discrepancies and running costs, with many claiming that their contracts do not have clauses relating to deductions, according to a report on the BBC.

Some staff, who work for Costa Coffee franchises run by Goldex Investments Essex, also claimed they were never given written contracts. Others said they were carrying out managerial roles while being underpaid for the work they were doing.

Courtney Morton, a former part-time employee at a Costa store in Upminster, said she was charged a flat £200 rate for training despite being told that the charge would be equivalent to one weeks’ wages, which were less than £200 a week.

“The deductions were really unfair. They deducted everyone if they were late, with the money increasing as the time went on up until an hour,” she told the BBC.

A Costa Coffee spokesperson said: “Deductions are circumstantial and reviewed on a case by case basis by the partner”.

Staff who had not received a contract or were not being paid correctly for the role they were carrying out were advised to contact the franchisee.

“We take complaints such as these very seriously and have shared those we’ve been made aware of with our partner who operates the franchise business to investigate as a matter of urgency,” the spokesperson added.

Goldex Investments Essex urged employees to discuss any issues with their line manager.

Staff began highlighting the deductions on social media after it was reported a worker in the Upminster store was told to pay back £280 that was stolen from the till earlier this month.

Dagenham and Rainham MP Jon Cruddas said Costa Coffee “should be investigating why one of their managers has seemingly pressurised a young worker to pay back funds after a robbery – especially as Costa are claiming this is not usual practice.”

Costa said an internal investigation into the incident was being conducted and claimed no workers had been asked to repay the stolen money.

In a letter posted on Twitter, Goldex Investments Essex confirmed that no money would be deducted from the employee’s salary.

HR roles in hospitality and leisure on Personnel Today

Browse more HR roles in hospitality and leisure

3 Responses to Costa Coffee franchisee’s training cost deductions ‘unfair’, staff claim

  1. Avatar
    Andrew Egan 20 Aug 2019 at 5:22 pm #

    Very interesting to read as I have recent experience of this through my daughter’s holiday employment at a Costa franchise. The staff there including my daughter have experienced and complained of late payment and underpayment of salary, unpaid overtime, no employment contracts provided, unlawful deductions of various amounts, a failure to reimburse agreed training costs or fees, all resulting from poor direction and poor management from managers and supervisors at those partners of Costa. This reflects very badly on Costa, as well as their partners or franchisees. This is very upsetting and disappointing for those affected, especially in this day and age when these organisations know better and know what their legal obligations are, yet seem to have no hesitation in taking advantage of and exploiting younger employees and workers who are generally very keen and hardworking. There are no excuses for such behaviour.

  2. Avatar
    Caz 29 Sep 2019 at 12:28 pm #

    My son worked at Costa Coffee in the summer of 2018, during a summer break from University. The manager knew he was going back to University in September. He worked a lot of hours and he worked 50 hours in his last week, but the manager asked him to come in the following week to help cover. He only worked approx 12hours, which is the amount of hours’ pay he should have been stopped according to the contract which says the last weeks’ pay will be stopped for training, but instead he was stopped £200 which was well in excess of his last weeks’ hours. He was told by Mr Khan that was unfair against him, but he still took £200. To this day our son can’t work out what training he received.

  3. Avatar
    Marco Silva 26 Mar 2020 at 7:40 am #

    From a management level I’ve never seen poorly managed managers and business on the franchise level . It’s none existent . Hardly paid on time , poor treatment. Zero knowledge of budgets and expenses. It’s now nearly a week since the coronavirus 80% pay announcement and zero communication has been made to staff. Not even one email to say anything. They will be the first to be calling staff to work long hours only for their pockets . These people should not be allowed to run franchise business without proper education. The deduction is there to con new starters because after a week into the job they start to realise how poor support is from above on the stores they want to leave. Contract is signed and they are forced to live with it or face the deductions.

Leave a Reply