Tesco | Retailer asks redundant staff to pay back wages

One of Britain’s biggest grocery and general retailers, Tesco, has provoked a row with former staff after admitting it “over and underpaid” people throughout their time there.

Tesco, whose net income was in excess of £1.2billion last year, has demanded that the overpaid staff give back accidental pay if it’s over £500. A Tesco spokesperson has said this “administrative error” was the company’s fault, but irrespective of this it is clear the international mega-retailer wants to show that keeping the overpayment is a precedent they don’t want to set.

This creates problems meaning any worker who was paid £499 can keep the whole amount, whereas the unfortunate soul who was paid £501 has to return all but £100 of it.

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The Press Association believes that around 200 to 300 former staff were overpaid as much as £2,000. The mix-up occurred during part of a major redundancy programme unveiled earlier this year which could see as many as 9,000 full-time positions be reduced or removed. Questions have been raised as to whether this move is needed, as Tesco reported a 28.8% rise in annual pre-tax profits last year.