Asda co-owners knew IT switch would spark payroll errors

Asda’s billionaire co-owners pushed ahead with an incomplete IT transition despite being warned that it would result in thousands of workers being paid incorrectly.

Senior figures are understood to have been informed in advance of the problems with the new HR system – a move that has affected 30,000 employees and left many out of pocket, The Telegraph reported.

The crisis has led to calls from unions for Mohsin Issa, the supermarket chain’s co-owner overseeing the IT transition, to apologise.


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It was reported last month that nearly 10,000 Asda workers had received incorrect payslips due to the IT glitch, with one employee claiming that two weeks’ worth of wages had been removed from their payslip.

Despite the supermarket informing staff the issue would be corrected in time for payday, Retail Gazette reported that some employees were still waiting for their pay to be corrected weeks later.

An Asda spokesperson told Retail Gazette: “The first payroll run with a large-scale systems migration rarely passes without any issues in any industry.

“For Asda colleagues, we unreservedly apologise to those impacted and continue to work with colleague representatives, including our unions, to rectify any outstanding issues – as a top priority.

“For the April payroll, Asda can confirm that the number of payroll queries was significantly reduced.”

Details of the ongoing payroll fiasco come days after it emerged that Asda co-owner Zuber Issa was closing in on the sale of his 22.5% stake in the supermarket chain to its private equity backer TDR Capital.

The transaction will lead to TDR owning a majority holding in the grocer, while fellow co-owner Mohsin Issa will retain his 22.5% stake and Walmart will  keep its 10% holding.

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