Payroll errors prove costly for troubled Tesco - 30th March 2017


It hasn’t been the best of times for Tesco, who this week agreed to pay a fine of £129 million to avoid prosecution for overstating its profits in 2014.

One story you may have missed however was the news that the supermarket giant will reimburse 140,000 current and former staff members a total of £9.7 million after payroll errors meant they were paid below the national minimum wage.

Britain’s largest supermarket chain said the majority of workers affected would receive up to £40 before the end of this month.

Tesco, who employ 320,000 people across the UK, said that the error was discovered during the implementation of a new payroll system and a review had found that mistakes had been made for some workers who paid into voluntary schemes such as pensions and childcare vouchers.

Matt Davies, UK and Ireland chief executive, said: “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.”

Business minister Margot James said: “it is unacceptable for any worker to be underpaid and everybody should check their pay ahead of the national minimum and living wages rising on April 1.

The easy way to avoid potential payroll headaches is to outsource to our dedicated payroll bureau - Three Counties Payroll – which provides a professional and confidential service.

Whatever sector you operate in, we can free up valuable time for you and your staff to grow your business. Our all-inclusive package includes advice on changes in employment legislation including national minimum wage and working time regulations.

If you are considering employing a payroll company or switching from your current provider, talk to Three Counties Payroll on 01905 622245. It pays to roll with us!


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