Tesco to reimburse colleagues after payroll review

Tesco is to reimburse 140,000 current and former colleagues following an internal review of its reward systems. The reimbursement for the majority of colleagues is expected to be up to £40.

The review, which was conducted during the implementation of a new payroll system, found the voluntary contributions made by some colleagues 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.

Tesco is in the process of contacting affected colleagues, and will ensure they all receive their reimbursement payments by the end of March. They will also be contacting former colleagues to arrange payments too.

Matt Davies, UK and ROI CEO at Tesco 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 USDAW.


Notes to editors:

  • Tesco employs 320,000 people in the UK
  • The total reimbursement costs are expected to be £9.7 million.
  • As part of the Payroll Review, all current and former UK colleague pay for the last six years has been checked.


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