Tesco UK agrees to £10m staff payout

Tesco has urged the Mandate trade union to call off proposed strikes in two stores in the coming weeks

Tesco UK has apologised to staff members and agreed to reimburse a total of £10m after a payroll error led to 140,000 workers earning less than minimum wage



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10 March 2017 | 0

Tesco in the UK has apologised to staff after a “payroll error” led to 140,000 workers’ pay packets leaving them earning below the national minimum wage.

The company said it aims to reimburse just under half of its total 320,000 employees, who will receive around £40 each, according to The Guardian. The error occurred during the implementation of a new payroll system.

“As soon as our own review identified this issue, we took immediate action to resolve it and establish which colleagues are affected,” said Matt Davies, CEO of Tesco UK & Ireland. “We’ve apologised to our colleagues and our priority now is to talk to them about how they are affected individually, and make any neccessary payments.”

Tesco added that it had notified the shopworkers’ union and Her Majesty’s Revenue & Customs about the error.

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