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Tesco admits hundreds of ex-staff hit by redundancy payment errors

The supermarket said it rectified the problem once it was highlighted.

Tesco has admitted staff who were made redundant have been under or overpaid (Nick Ansell/PA)
Tesco has admitted staff who were made redundant have been under or overpaid (Nick Ansell/PA)

Tesco has overpaid and underpaid hundreds of staff who were recently let go in the latest round of redundancies at the supermarket.

Chief executive Dave Lewis apologised for the distress caused and said that, as soon as the problems were identified, letters were sent to try to fix it.

Between 200 and 300 former workers were affected, the Press Association understands, with some overpaid by as much as £2,000.

Tesco is now attempting to claw back the overpayments, but has paid the correct amounts to those who received too little.

Anyone who was overpaid by more than £500 will be able to keep £100. But anyone overpaid by less than £500 will be allowed to keep the full amount.

This creates small quirks that mean anyone overpaid by £499 will be able to keep the full amount, but anyone overpaid by £500 will have to return £400.

We have been in touch with colleagues who were overpaid to apologise, and we will be fair to colleagues affected, taking account of individual circumstances Tesco

A Tesco spokesman said: “A small number of colleagues were impacted by an administrative error which resulted in an incorrect redundancy payment being made to them.

“Colleagues who were underpaid were paid the correct amount within one to two working days and this issue is now resolved.

“We have been in touch with colleagues who were overpaid to apologise, and we will be fair to colleagues affected, taking account of individual circumstances.”

The former employees were part of a major redundancy programme announced earlier this year which is expected to affect 9,000 full-time equivalent positions – although a total number has not been announced.

This includes plans to close or reduce deli counters across stores, and end catering for staff in stores. Head office jobs are also expected to go.

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