UK supermarket chain Asda has confirmed that close to 10,000 of its hourly paid employees have been affected by a payroll system issue, resulting in incorrect payslips.
The issue, which was first reported by the Telegraph, has led to some staff members being underpaid, with reports of up to two weeks’ wages missing.
Go deeper with GlobalData
The payroll disruption is a significant challenge for Asda’s new owners, the Issa brothers and TDR Capital, as they work to separate the company’s IT systems from those of its former owner Walmart.
In October 2023, Asda and Tata Consultancy Services entered a multi-year partnership to secure a smooth divestiture after its separation from Walmart.
Asda’s letter to store managers was quoted by the newspaper as follows: “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.”
How well do you really know your competitors?
Access the most comprehensive Company Profiles on the market, powered by GlobalData. Save hours of research. Gain competitive edge.
Thank you!
Your download email will arrive shortly
Not ready to buy yet? Download a free sample
We are confident about the unique quality of our Company Profiles. However, we want you to make the most beneficial decision for your business, so we offer a free sample that you can download by submitting the below form
By GlobalDataTrade union GMB, which represents Asda workers, revealed issues arising from the unsuccessful IT update.
A spokesman for the union 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.”
Issa Brothers and TDR Capital have been attempting to replace the IT systems from former owner Walmart for the last three years since acquiring the supermarket for £6.8bn in 2021.
The new owners expect the handover to be completed before the end of 2024.
In March 2024 UK watchdog the Payments Systems Regulator confirmed that it is assessing the IT failures that disrupted operations at Greggs, Tesco, McDonald’s and Sainsbury’s in the middle of the month.
