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Tesco to pay back thousands of underpaid staff | Tesco to pay back thousands of underpaid staff |
(about 3 hours later) | |
Tesco is reimbursing 140,000 current and former staff who were left underpaid due to a payroll error. | Tesco is reimbursing 140,000 current and former staff who were left underpaid due to a payroll error. |
The supermarket is set to pay out about £10m with most workers getting up to £40, although some could get much more. | The supermarket is set to pay out about £10m with most workers getting up to £40, although some could get much more. |
Some staff were paid less than the National Living Wage after contributing part of their salary to pensions, childcare and cycle to work schemes. | Some staff were paid less than the National Living Wage after contributing part of their salary to pensions, childcare and cycle to work schemes. |
Tesco discovered the errors during a review as part of the implementation of a new payroll system. | Tesco discovered the errors during a review as part of the implementation of a new payroll system. |
In a message to staff, seen by the BBC, the supermarket said it had checked pay for the last six years. | In a message to staff, seen by the BBC, the supermarket said it had checked pay for the last six years. |
It found the error had occurred at least once for around a third of existing staff, plus 40,000 former colleagues, the message said. | It found the error had occurred at least once for around a third of existing staff, plus 40,000 former colleagues, the message said. |
Tesco added that it would reimburse current employees by the end of March. | Tesco added that it would reimburse current employees by the end of March. |
It will also be contacting former workers affected by the errors to arrange their payments. | It will also be contacting former workers affected by the errors to arrange their payments. |
Apology | Apology |
Matt Davies, chief executive of Tesco UK and Ireland, said: "As soon as our own review identified this issue we took immediate action to resolve it and establish which colleagues are affected. | Matt Davies, chief executive of Tesco UK and Ireland, 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'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." |
Business minister Margot James said Tesco's announcement showed the government's "approach to the enforcement of the minimum wage is clearly working". | |
"It is completely unacceptable for any worker to be underpaid and everybody should check their pay ahead of the national minimum and living wages rising on 1 April," she added. | "It is completely unacceptable for any worker to be underpaid and everybody should check their pay ahead of the national minimum and living wages rising on 1 April," she added. |
The National Living Wage will rise from £7.20 to £7.50 an hour next month, for those aged 25 and over. | The National Living Wage will rise from £7.20 to £7.50 an hour next month, for those aged 25 and over. |
Last month, HMRC named 360 businesses who had failed to pay the statutory minimum wage. | Last month, HMRC named 360 businesses who had failed to pay the statutory minimum wage. |
Debenhams, Subway and Lloyds Pharmacy were among the companies told to refund staff. | Debenhams, Subway and Lloyds Pharmacy were among the companies told to refund staff. |