Sports Direct is facing a claim for millions of pounds from nearly 300 workers excluded from the retailer’s generous bonus scheme because they were on zero-hours contracts. The employees were excluded from a bonus scheme that paid out about £160m worth of shares to 2,000 “permanent” workers in 2013. The individual claims average about £36,000 each but the highest is worth more than £100,000.

Some of the workers making claims for the missed bonuses still work for Sports Direct. The company, which is controlled by the billionaire Newcastle United football club owner Mike Ashley, has been widely criticised for employing nearly 90% of its staff on zero-hours contracts.

In October last year, the retailer was forced to make clear the limitations of such contracts to staff and to inform them that they were entitled to sick pay and holiday pay after legal action by former worker Zahera Gabriel-Abraham.

The business secretary, Vince Cable, has warned “unscrupulous employers” that he plans to ban clauses in zero-hours contracts that prevent workers accepting shifts with more than one employer.

Comment

Employment Associate Paul Burton says, "This case could be the first of many that are brought by workers on zero hours contracts and, if it is not settled by Sports Direct outside court, it could be a test case. We will keep an eye on the case and report back if and when there are any meaningful decisions."

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