The Active Partners-backed business has said that their introduction was 'frankly a mistake' and it could no longer afford the £600,000 a year cost to the business, the Evening Standard reports.
In an internal briefing, seen by the Standard, the company told shop-floor workers that it wanted to make breaks unpaid, but would increase hourly pay as compensation.
Under the new terms, a waiter or chef at Honest would be paid £10.45 an hour; a shift manager would see an hourly increase of 70p to £12.20 per hour; and head chefs and sous chefs would see their pay increased by £1 per hour to £15 and £13 respectively.
The company said it believed the change was being 'broadly well received'. However, some workers at the chain have called the change 'an insult' and claim it would leave them worse off.
It has been reported that those who refuse to voluntarily accept the new terms face being fired and then rehired on the new terms, which it said would be a 'last resort'.
A spokesperson for Honest Burgers said: “This benefit is one that is quite unusual in the sector and we are removing it in order to be able to afford higher pay rates for our team members, with increases of 6%-10% for the roles not directly affected by the 10% national minimum wage increase.
“We are making every effort to be fair to our people and to ensure that the majority of our team members will be better off.”