Payroll review sees supermarket reimburse colleagues
It has been reported that Tesco is to reimburse around 140,000 current and former colleagues, after an internal review of its reward systems took place.
The reimbursement for the majority of the colleagues involved is predicted to be around £40 each.
The total reimbursement costs are expected to reach around £9.7 million.
As part of the payroll review, all UK Tesco colleagues’ pay for the last six years has been checked.
The review was conducted during the implementation of a new payroll system.
It found the voluntary contributions that were made by some of the colleagues to benefits such as pensions, childcare vouchers and cycle to work schemes, led to errors.
These errors then resulted in their pay after salary sacrifice not reaching National Living Wage levels.
The supermarket retailer is now in the process of contacting the affected colleagues.
Tesco will also make sure all colleagues receive their reimbursement payments by the end of March.
The retailer will be contacting former colleagues to arrange payments too.
UK and ROI CEO of Tesco, Matt Davies, said: “As soon as our own review identified this issue we took immediate action to resolve it and establish which colleagues are affected.
“We’ve apologised to our colleagues and our priority now is to talk to them about how this affects them individually, and make any necessary payments. We expect payments to be up to £40 for the majority of affected colleagues.”
Tesco has informed HM Revenue and Customs and has also briefed the Union of Shops, Distributive and Allied Workers (USDAW).
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