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Crytek UK staff not paid full wages since April and more

D

dmr87

Member
Yet another article about Crytek. I know we have Jason's article on Kotaku but here's some additional info.

- Working on Homefront with 90 people.
- Staff promoted to Senior roles without equivalent pay rise. Senior roles are required to hand in a three months notice if they chose to resign so this is believed to be a tactic to get staff to stay. i.e. scumbag move.
- New recruits are coming in but people are leaving faster than they can recruit.

A number of staff at Crytek UK have not been paid their full salary since April 21st, a source connected to the matter has told Develop.

The source, who has ties with the studio, said since April, employees had received small payments of around £700 last month. At the time they had been told a deal was being made to secure money from Deutsche Bank, but that was since delayed.

A further payment was paid on June 16th, with staff then told to expect payment on Friday, June 27th. Our source claims however “this now looks like it won't happen either”.

Crytek UK is currently working on Homefront: The Revolution under what been a team of 90 developers.

Develop understands that since work on the game began, 40 staff have left, and the issues with salaries “has added to that number”. While there has been high turnover with new recruits coming in, it was said that the team cannot hire as fast as people are leaving.

It was also claimed that a number of staff have been promoted to senior roles recently, with such employees required to hand in three months notice if they choose to resign. These staff have also allegedly not been given pay rises “equivalent to the job role”, leading to suggestions it was a tactic to ensure staff stay on at the studio.

As a result of these issues, morale at the studio is said to be generally low, with unhappiness particularly directed at “differences with the creative direction of the project”, as well as pay.

Despite the staff departures, our source said that following the cancellation of Ryse 2, many developers from the Frankfurt office – where the sequel to the Xbox One launch title was to be made – are now working with Crytek UK on Homefront.

Developers at the Germany-based office have had their own problems however, with issues apparently starting as early as last year, though at that time the UK studio was unaffected. It is not currently clear however exactly what has happened in Frankfurt.

A Crytek spokesperson declined to comment on the matter.
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http://www.develop-online.net/news/crytek-uk-staff-not-paid-full-wages-since-april/0194556
 
N

Nirolak

Mrgrgr
dmr87 said:
- Staff promoted to Senior roles without equivalent pay rise. Senior roles are required to hand in a three months notice if they chose to resign so this is believed to be a tactic to get staff to stay. i.e. scumbag move.
Click to expand...

Is this even legal? I'm not familiar with the UK legal system.

At the time they had been told a deal was being made to secure money from Deutsche Bank, but that was since delayed.
Click to expand...
Yeah, I've long since figured that much of their cash was coming from bank loans and private equity given the growth versus number of projects.

I can't imagine they'll get much more investment at this rate though.
 
VE3TRO

VE3TRO

Formerly Gizmowned
3 months notice? I thought it was 1 week. That's what I was given when I quit a job.
 
T

Tunesmith

formerly "chigiri"
Soulflarz said:
Wait you can tell someone you cant quit for 3 months? Like...legally? Or everyone will just be pissed.
Click to expand...

If it's in a signed contract I believe it's kosher (up to 12 weeks IIRC) if the position is deemed a vital one. Which from the sound of things they've engineered them as?
 
T

TheWretched82

Member
German law states a 4 week notice... and I don't think your employer can actually make this longer...

(6) Für die Kündigung des Arbeitsverhältnisses durch den Arbeitnehmer darf keine längere Frist vereinbart werden als für die Kündigung durch den Arbeitgeber.
Click to expand...

Which says that your contract cannot enforce a longer notice by the employer.
 
S

Skyzard

Banned
Pay your fucking employees.

Also, stop trying to be too far ahead of the curve, even gamers are behind. Pay your fucking employees.
 
Glass Rebel

Glass Rebel

Member
Yeah, I don't see Crytek surviving for too long at this rate. I've been thinking for a while that Yerli was getting too bigheaded for his own good and there we have it.
 
S

SniperHunter

Banned
i feel bad for tod pappy (the god of war ascension director) he quit Sony Santa Monica and moved to Germany to join Crytek. Talk about the worst choice ever :p
 
K

Kresnik258

Member
Nirolak said:
Is this even legal? I'm not familiar with the UK legal system.
Click to expand...

If it's written into the contract of employment, an employer & employee can agree to any period of notice as long as it's longer than the statutory minimum (which, for an employee to hand to an employer is 1 week after 1 month continuous employment).

And if there's no express term in the contract, it's what's 'reasonable'. Which depends on how senior the employee is (in which case, 3 months may be perfectly reasonable depending on the role).
 
C

coldcrush

Neo Member
Nirolak said:
Is this even legal? I'm not familiar with the UK legal system.


Yeah, I've long since figured that much of their cash was coming from bank loans and private equity given the growth versus number of projects.

I can't imagine they'll get much more investment at this rate though.
Click to expand...

Not sure about the specifics of contract, but when I lived in UK it was a 2 month notice at my studio...

This worked both ways though when the studio got shut down it meant people had 2 months notice & pay / portfolio time before doors were shut.. compared to my job here in USA where I could come in one day and find myself unemployed by the afternoon.

It usually works out better for employees than employers,,,,
however if above story is true then definitely a shitty tactic... I hope that things work themselves out, If UK studio shuts it will be a shame because the UK had alot of great studios a few years ago now few and far between...
 
L

LurkerPrime

Member
So is Crytek going to be the first victim of the new generation, then?

I don't understand how employees can stay with a business that refuses to pay them, but I guess they don't have much of a choice right now. Crytek has put their employees in a real bad situation.


I also had no idea Crytek was so huge, I feel like they only ever made a few games.
 
K

Kresnik258

Member
OT: Crytek UK are the only one of their studios I actually like, mainly for the Timesplitters connections. I doubt any of those people are still there any more though.

Still, horrible situation to be in. Hope it gets sorted soon.
 
D

doniewhalberg

Member
1st Course said:
No one will buy them. Pubs at this point are waiting for them to die THQ style so they can get the IPs for dirt cheap.
Click to expand...

If they even want them. I guess the crysis brand has pull but what else is there really to buy off Crytek's corpse? I suppose MS could buy Ryse if they really care that much, seems like a lost cause for them though without a dev team to make it. I write that as a fan of Crytek btw, I like the Crysis series and Ryse, looking forward to homefront but it seems they're going uot of business because people don't want their stuff so the IP can't have much worth.
 
N

Nirolak

Mrgrgr
Kresnik258 said:
If it's written into the contract of employment, an employer & employee can agree to any period of notice as long as it's longer than the statutory minimum (which, for an employee to hand to an employer is 1 week after 1 month continuous employment).

And if there's no express term in the contract, it's what's 'reasonable'. Which depends on how senior the employee is (in which case, 3 months may be perfectly reasonable depending on the role).
Click to expand...

coldcrush said:
Not sure about the specifics of contract, but when I lived in UK it was a 2 month notice at my studio...

This worked both ways though when the studio got shut down it meant people had 2 months notice & pay / portfolio time before doors were shut.. compared to my job here where I could come in one day and find myself unemployed by the afternoon.

It usually works out better for employees than employers,,,,
however if above story is true then definitely a shitty tactic.
Click to expand...

Ah, I see. Thanks.

So it's presumably generally the same as the "consultancy period" I see when UK firms go bankrupt.
 
Yoda

Yoda

Member
I don't think they will be able to secure any additional lines of credit given their situation. Chances are the studio is either going to have a massive makeover or collapse entirely.
 
E

Enco

Member
What does Crytek actually do?

Have they made anything decent in recent years?

The only thing I've seen from them is trash talk and small demos of 'amazing world class graphics' that end up forgotten.
 
M

Mpl90

Two copies sold? That's not a bomb guys, stop trolling!!!
I'm starting to doubt Homefront will ever come out, at this point...
 
D

drak_dreamer

Member
376208.jpg


Sorry
 
E

Enco

Member
SniperHunter said:
The only decent thing to come from Crytek after Warhead was the multiplayer for Crysis 2.
Click to expand...
This crap isn't surprising then.

They're holding on by a thread.

It'll be sad to lose another gaming company but personally I doubt many gamers will be affected.
 
S

shinra-bansho

Member
At the rate this is going Microsoft is going to get the rights to Ryse at the fire sale anyway, so I'm not really sure why they're so adamant about keeping the IP (which frankly doesn't seem all that valuable to me in this instance) rather than securing continued work to fund their operations.
LurkerPrime said:
So is Crytek going to be the first victim of the new generation, then?
Click to expand...
Crytek is a victim of poor management.
 
ShinMaruku

ShinMaruku

Member
Real talk Tech employees need to be more proactive in protecting their rights. This shit will continue on and on because this industry has bought into it's own shit for too long.
 
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