Tesco To Reimburse Staff After Payroll Review

Tesco announced today that it is to reimburse 140,000 current and former staff following an internal review of its reward systems.

The company said that review, which was conducted during the implementation of a new payroll system, found the voluntary contributions made by some staff to benefits such as pensions, childcare vouchers and cycle to work schemes, led to errors that resulted in their pay after salary sacrifice not reaching National Living Wage levels.

The reimbursement for the majority of affected staff is expected to be up to £40, costing the group around £10m

Tesco said it was is in the process of contacting affected staff, and will ensure they all receive their reimbursement payments by the end of March.

Matt Davies, UK and ROI CEO at Tesco, commented: “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.”