Payroll glitch | 9,500 Asda staff given incorrect payslips - some missing fortnight's pay

9,500 Asda staff given incorrect payslips - some missing fortnight's pay

Thousands of Asda employees have received incorrect payslips, with some missing up to a fortnight’s pay, following a payroll glitch.

The Telegraph first reported on an internal memo sent to the supermarket giant’s senior staff, disclosing that thousands of workers, who are paid by the hour rather than salaried, had been impacted by the mishap.

The national newspaper additionally reported that some affected staff were missing as much as two weeks’ wages from their pay.

The letter from Asda bosses to store managers said: “During our payroll checks, we have currently identified around 9,500 hourly paid colleagues who are impacted by incorrect pay, due to what we believe is an issue with a specific holiday calculation as we have moved to our new systems.

“Colleagues’ payslips may not show correctly so please reassure colleagues that we are aware of this and are making the relevant adjustments to ensure that colleagues receive payment by Friday payday.”

Read more from us

A spokesperson for the supermarket stated: “We recently launched a new HR system and conducted pre-emptive checks to identify any potential issues before colleagues were paid this month.

“These checks found a potential problem with holiday pay that could have resulted in a pay discrepancy for some hourly paid colleagues.

“We have taken immediate and proactive steps to correct this – to help ensure there will be no shortfall in pay for these colleagues this month. Project Future will give Asda a world-class IT platform.”

A GMB Union member told The Telegraph: “GMB has been made aware of numerous and significant issues relating to our members’ pay being incorrect and underpaid as a result of the change in Asda’s pay and people systems this payday.

“Being underpaid can cause huge levels of stress and anxiety, particularly as the majority of Asda’s workers are low-paid.”

Payroll issues blighting UK firms

It’s not just at Asda that payroll issues are causing money worries for employees. Earlier this month, it was reported that Surrey County Council employees have been left facing ‘catastrophic’ mental health concerns amid ongoing payroll system errors resulting in months of incorrect wages.

The local authority has been plagued by issues relating to its payroll system, which was introduced in June 2023 to replace a previous system that was more than 20 years old, according to the Local Democracy Reporting (LDR) service.

But the new system, which reportedly cost £30m to get up and running, has resulted in pay errors ever since, with many public sector staff such as teachers and firefighters being paid either too much or too little each month – both of which have had “dire reverberations”, according to union figures.

The employer's guide to creating a fitter, happier and more productive workforce

The employer's guide to creating a fitter, happier and more productive workforce

Many HR professionals report that they are missing the evidence they need to convince their business leaders that wellbeing improves company performance.

This report shares key insights on how creating a fitter and happier workforce can improve a company’s performance and the answers needed to provide evidence for HR leaders.

You will learn:

  • The biggest challenges faced by HR professionals so far in 2024

  • The best strategies to improve employee motivation and grow overall organisational success

  • Methods to enable and deliver key impact for a fitter, happier and more productive workforce

Show more
Show less

The unions aiding staff warned that the issues have seen some staff missing payments on their mortgages, rent and household bills.

Furthermore, a recent study from Rippling found that HR leaders in the UK are grappling with stress, burnout, and hindered strategic work due to outdated payroll technology and inefficient processes.

The research, based on a OnePoll survey of 250 UK-based payroll managers across businesses of varying sizes, sheds light on the challenges faced by HR professionals tasked with managing payroll.

Notably, around 32% of payroll managers invest over seven days per month into the payroll process, a task that often detracts from their ability to engage in more strategic responsibilities.

Medium to large businesses, employing 500 to 999 people, appear to be disproportionately impacted by antiquated payroll practices.

A staggering 90% of payroll managers in this segment report manually inputting data into spreadsheets on a monthly basis to ensure timely employee payments.

Consequently, a significant majority, 77%, of respondents from medium to large businesses feel that payroll management contributes to stress and burnout.

Moreover, 78% of those surveyed express frustration at being impeded from focusing on strategic initiatives due to the inefficiencies within their organisation's payroll processes.

A further 71% acknowledge the need for a change in their payroll provider, while 78% express a desire to overhaul their payroll system, albeit with apprehensions about the arduousness and duration of the process.

The study also delves into the practice of outsourcing payroll operations. Approximately 24% of businesses across all sizes resort to outsourcing, incurring an average monthly cost of £3.69 per employee.

For a company employing 2,000 individuals, this translates to nearly £90,000 annually.

This financial burden, coupled with the considerable internal resources required to navigate the intricate process, underscores the financial and operational toll of inefficient payroll management.

The importance of deploying modern technology to alleviate the administrative burdens associated with payroll management cannot be overstated.

By integrating technology that connects applications, systems, and databases, HR teams can free themselves from repetitive tasks, enabling them to contribute more strategically to their organisations' growth and success.

You are currently previewing this article.

This is the last preview available to you for the next 30 days.

To access more news, features, columns and opinions every day, create a free myGrapevine account.