Odette KaplanThe Works shuts down its e-commerce site: what retail employees can and cannot be asked to accept
The Works, the UK arts, crafts and stationery retailer, announced on 20 March 2026 the immediate closure of its e-commerce website, citing operational failures with its fulfilment partner and losses representing less than 10% of total sales. The company's stock rose 19% on the news, with management upgrading 2027 earnings guidance from £12.7 million to £15 million EBITDA. For investors, it is good news. For staff directly involved in online operations, the situation is considerably less clear.
When a company restructures this abruptly, employees face a set of legal rights that many are unaware of — rights that an employment lawyer can help enforce.
What "operational restructuring" actually means for workers
The Works plans to focus exclusively on its brick-and-mortar stores going forward, with five net new stores planned this year and ten next year. This sounds like growth. But the closure of an entire sales channel — even a minor one — creates a specific legal situation for employees whose roles were linked to that channel.
Under the Employment Rights Act 1996 and related legislation, redundancy occurs when an employer ceases to carry out the business activity for which an employee was engaged, or reduces the need for employees to do that particular type of work. The shutting down of an e-commerce function almost always triggers this definition.
This matters because a genuine redundancy carries legal protections: notice rights, statutory redundancy pay (for employees with at least two years of service), and the right to a meaningful consultation process. These protections cannot simply be waived because management frames the change as a "strategic refocus."
The 45-day rule: what it means if multiple jobs are at risk
If The Works is making 20 or more redundancies within a 90-day period across any establishment, UK law requires a minimum 45-day collective consultation period with employee representatives or trade union reps before any dismissals take effect. For fewer than 20 redundancies, the minimum is 30 days.
Failing to comply with these timeframes means the employer is liable for a protective award of up to 90 days' gross pay per affected employee. This award is separate from redundancy pay — it exists precisely to penalise employers who cut corners on the consultation process.
An employment solicitor will review the timeline of any redundancy against these statutory requirements. A company that announces closures and rapidly implements changes without adequate consultation is exposing itself to significant liability.
What you are entitled to receive — and when
Statutory redundancy pay in the UK is calculated based on age, length of service, and weekly pay (capped at £643 per week as of April 2025, subject to annual revision). The formula is:
- Half a week's pay for each full year of service under age 22
- One week's pay for each full year between 22 and 40
- One and a half weeks' pay for each year over 41
In addition to statutory redundancy pay, your employment contract may contain an enhanced redundancy clause providing more generous terms. Checking your contract carefully — ideally with a solicitor — before signing anything is strongly advisable. Once you sign a settlement agreement, your rights are substantially limited.
"Your role is changing, not disappearing" — when to be sceptical
A common tactic when companies want to avoid redundancy costs is to argue that employees are being redeployed, not made redundant. If The Works moves online team members into store-based roles, it may argue no redundancy has occurred. This is not automatically correct.
For a redeployment to be legally valid as an alternative to redundancy, the new role must be suitable — meaning comparable terms, conditions, working hours, and location. If a warehouse operative is offered a part-time sales assistant role at a different store, that is unlikely to be "suitable alternative employment" under the legal standard. Accepting a role that is materially worse is not required.
You have a four-week trial period to assess any alternative role offered during a redundancy process. If the role proves unsuitable during that period, you can still claim your redundancy entitlement.
Settlement agreements: read before you sign
The Works may offer some employees a settlement agreement (formerly called a compromise agreement). These are legal contracts under which you typically receive a lump sum payment in exchange for agreeing not to bring employment tribunal claims. Before signing any such agreement, you must obtain independent legal advice — this is a legal requirement, not optional.
A solicitor will review whether the amount offered reflects your actual entitlements, identify any claims you may have (unfair dismissal, discrimination, breach of contract) that the settlement is asking you to waive, and advise on the tax treatment of the payment. In many cases, the initial settlement offer is a starting point, not a take-it-or-leave-it figure.
The broader picture: retail restructuring is not slowing down
The Works is not alone. The British Retail Consortium reported in early 2026 that online channel rationalisation is accelerating across mid-market UK retailers as fulfilment costs continue to outpace revenue. Several major chains are expected to announce similar structural reviews before the summer.
For anyone affected by retail restructuring — whether at The Works or elsewhere — knowing your rights before a formal consultation process begins puts you in a significantly stronger position. Employment lawyers on Expert Zoom offer initial consultations to review your contract, your employer's obligations, and what you can realistically expect in a redundancy or restructuring scenario.
A 19% share price rise is good news for shareholders. It should not come at the cost of employees' legal entitlements.
This article is for general information purposes only and does not constitute legal advice. Employment law is highly fact-specific. Consult a qualified employment solicitor for advice on your specific situation.
