Well-known Sheffield hotel 'not for sale' as staff fume over unpaid furlough money

Zishan Zaman, the freeholder of The Quality Hotel Sheffield North, in Chapeltown, told The Star that the business is no longer for sale, having been put on the market before the coronavirus pandemic.

Confusion arose when it was spotted for sale on the website of property agent Lambert Smith Hampton. It was still listed on the website on Friday, 17 July after The Star spoke to Mr Zaman.

He said: "We don't intend to sell anything. Before Covid-19 it was a great time to sell but this is the wrong time.”

It comes as some staff members told The Star they have not received a penny in furlough money, despite being placed on the scheme when it opened in late March. And last month about 60 per cent of hotel staff, thought to be 35 people, were told they were going to lose their jobs via a letter headed: ‘Whoever has received this letter is part of the list of redundancy’. They said there was no consultation process.

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Paul Newsome, who was employed as a night porter at the hotel for three years, said: “He [Mr Zaman] furloughed us but we haven’t been paid.

”He’s made me redundant, I’ve had no redundancy pay, holiday pay or the week we worked in hand.”

Paul added: “When I tried to contact Universal Credit they told me I had been paid by him because on my HMRC account he’s put down that he’s paid me.

"I have gone three months without any money. It’s terrible and shocking, I’m just getting deeper into debt.”

The husband of another former staff member said his wife is in the same position and awaiting an employment tribunal. The Star has also spoken to another former staff member of 14 years who made the same accusations.

The former staff member’s husband, who wished to remain anonymous, said: “Some staff are now having universal tax credits stopped as a result, leaving them with no money at all, even for basic essentials like food.”

Another woman, who also wished to remain anonymous, has been requesting a booking refund for seven weeks. She said staff told her the decision would have to be made by the hotel’s directors as the venue ‘is not currently trading’.

Sheffield Council confirmed the hotel is currently being paid to house homeless people during the coronavirus pandemic.

“To me this is a double kick in the teeth as my wife and her colleagues are not getting the entitled furlough funds and we the taxpayer are lining this man’s pockets further with this council contract at his hotel,” the former employee’s husband added.

Paul and others have been emailed to inform them the company who paid their wages, Ditto Payroll Ltd, have been reported to The Pensions Regulator for non-payment of pension contributions, despite contributions being deducted from staff wages.

Mr Zaman is not listed as a director of Ditto Payroll Ltd on the Companies House website.

In response, Mr Zaman said: "I own the freehold. I took back the building at the end of March because the tenants couldn't pay me. The previous tenants were a hospitality company.

He added: "I employ the ones that are working there now, that's all I have at the moment. I'm only responsible for the freehold. I don't employ any staff."

While HMRC said they do not comment on identifiable businesses or taxpayers, a spokesperson told The Star: “The Coronavirus Job Retention Scheme is part of the collective national effort to protect jobs. This is taxpayer’s money and fraudulent claims limit our ability to support people and deprive public services of essential funding.

“We’d ask anyone concerned their employer might be abusing the scheme to please contact us. We won’t hesitate to take criminal action against the most serious cases.”

Janet Sharpe, director of housing and neighbourhood services at Sheffield City Council said: "The council is purchasing accommodation from this and other hotels for its rough sleepers. Our understanding is that the hotel is providing good services for them.

"We'd review that arrangement wherever any allegations are made."