British retailer Tesco has announced that it will compensate UK employees up to £40 pounds each after an internal review of its reward programme.
The reimbursement costs will total £9.7 million.
The assessment, which was carried out during the implementation of a new payroll system, found errors to voluntary contribution schemes, such as pensions and childcare vouchers.
These errors resulted in employees' salary sacrifice not reaching National Living Wage standards.
In a statement, the company said that it is currently contacting affected current and former staff, who will receive the reimbursement by the end of March.
Matt Davies, UK and ROI CEO at Tesco commented on the findings, “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".
The review examined all UK employee pay for the last six years. Tesco employs 320,000 people in the UK.
© 2017 European Supermarket Magazine – your source for the latest retail news. Article by Karen Henderson. Click subscribe to sign up to ESM: The European Supermarket Magazine.
