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Harrods proposes to cut staff commission

Staff at luxury London department store Harrods may face pay cuts under proposed plans to overhaul sales commission.

Harrods are set to overhaul its employee commission structure, with some commissions reported to be cut by 25% from May, which could result in many workers losing thousands of pounds of pay each year.

Harrods said the total earnings for most employees would be “broadly in line” with last year’s pay, and that commissions and bonuses would “reflect future business requirements”. They stressed that the pay structure at the retailer had not been reviewed since 2002, and the aim of the new system was to make sure payment across the board was as fair as possible and up to date for the business. 

Harrods’ sales hit £2bn for the first time last year, as it benefited from international shoppers drawn to luxury products in the wake of the Brexit referendum and the weakeness of sterling.

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