// Tesco apologises for hundreds of staff underpaid and overpaid
// Staff overpaid up to £2000
// CEO Dave Lewis admits “there was a mistake”
Tesco chief executive Dave Lewis has apologised to hundreds of former Tesco workers who were either underpaid and overpaid after recently being made redundant.
The employees affected are part of a redundancy programme announced by Tesco earlier this year, as the retailer aims to make £1.5 billion in cost savings by 2020.
The wave of redundancies is expected to impact around 9,000 full time (or equivalent) positions, although a total number has not yet been announced.
Between 200 and 300 former workers were affected, with some overpaid by as much as £2,000.
“There was a mistake. Anybody that was underpaid was rectified within 24-36 hours and we’re now in consultation with those people who were overpaid,” said chief executive Dave Lewis in light of the news.
“It was regrettable – I didn’t want it to happen,” he added.
Tesco is now looking to receive back the overpayments and pay the correct amounts to those who received too little.
The grocer said anyone who was overpaid by more than £500 will be able to keep £100. But anyone overpaid by less than £500 will be allowed to keep the full amount.
That means anyone overpaid by £499 will be able to keep the full amount, but anyone overpaid by £500 will have to return £400, keeping £100.
A Tesco spokesman said: “A small number of colleagues were impacted by an administrative error which resulted in an incorrect redundancy payment being made to them.
“Colleagues who were underpaid were paid the correct amount within one to two working days and this issue is now resolved.
“We have been in touch with colleagues who were overpaid to apologise, and we will be fair to colleagues affected, taking account of individual circumstances.”
Click here to sign up to Retail Gazette‘s free daily email newsletter
