Harrods Announces Compensation Scheme for Alleged Victims of Mohamed Al Fayed
Harrods has launched a compensation initiative, offering up to £200,000 to individuals who allege they were sexually abused by the department store’s late owner, Mohamed Al Fayed. This scheme was announced on Monday and aims to address claims of sexual misconduct against Al Fayed, who passed away in 2023.
Details of the Compensation Scheme
According to MPL Legal, the law firm representing Harrods, victims may be eligible for general damages of as much as £200,000. The scheme also provides for other compensation avenues, including:
- Work impact payments up to £150,000 for loss of job opportunities resulting from sexual assault.
However, participants in the scheme can only apply for one form of compensation, creating limitations on their potential recovery.
Background of the Claims
The establishment of the compensation scheme follows last year’s allegations aired by the BBC regarding Al Fayed’s history of sexual abuse. The businessman managed Harrods from 1985 until 2010, when he sold the iconic store to a Qatari sovereign wealth fund.
Reactions from Legal Representatives
The response from lawyers representing the alleged victims has been mixed. Richard Meeran, a partner at Leigh Day, which advocates for 27 women, acknowledged that the scheme “may be a preferable option for many.” However, he cautioned that Harrods appears to be attempting to sidestep the potential legal repercussions and reputational damage associated with court trials.
Conversely, KP Law, representing over 260 women, expressed concerns regarding the scheme’s fairness and adequacy, criticizing elements such as:
- The cap on damages as insufficient.
- Documentation requirements deemed overly intrusive.
- The lack of consideration for the individual complexities of each claimant’s situation.
Lawyers from Irwin Mitchell, who also represent various victims including ex-employees of Harrods, stated that the scheme “could be argued that it doesn’t quite go far enough to reflect the gravity of what happened here,” but they cautiously welcomed its existence.
Options for Claimants
Victims have the choice to either participate in the compensation scheme or pursue legal action in court if they find the provisions inadequate. Harrods, which is financing this compensation initiative, has issued an apology to the victims, stating, “while nothing can undo the abuse which survivors have suffered, we want everyone who is eligible to receive this compensation.” They emphasized their intent to provide a trauma-informed alternative for handling claims.
Application Process and Deadline
The application process is tailored for individuals with claims against Harrods specifically linked to acts of sexual abuse by Al Fayed. While applications will be accepted until March 31 of next year, Harrods has indicated that this deadline may be extended.
For additional questions regarding the compensation scheme, victims are encouraged to reach out to the legal representatives involved for more information.