Asda fails to fix payroll crisis as staff remain out of pocket

ASDA is yet to resolve a payroll crisis that has left swathes of workers out of pocket, piling further pressure on boss Mohsin Issa.

The supermarket’s internal systems have been overwhelmed by complaints since The Telegraph first revealed details of the IT meltdown last month.

An internal memo shows that almost 10,000 workers received incorrect payslips as a result of the botched systems update, with some still missing hundreds of pounds as a result.

It is understood that store managers were permitted to make £200 payments to affected staff – not enough to make up for the full shortfall, with workers up to £500 out of pocket.

Some employees were forced to use food banks or rely on payday lenders as a result. The IT crisis sparked a range of challenges for employees, as incorrect payments coincided with some being unable to access their payslips at all.

For those who were overpaid, there are mounting fears that Asda could seek to claw back cash in one lump sum, potentially inflicting further pain on low-paid workers.

The crisis has led union chiefs to call for Mr Issa to apologise. The Asda co-owner has been overseeing the company’s payroll update as part of a broader IT transition. A crunch meeting will be held between Asda and union bosses at GMB on Monday.

Nadine Houghton, GMB national officer, said: “Paying staff properly is a basic for any employer. And when many of your staff are struggling to make ends meet – it is vital you get this right.

“Cost-cutting by slashing staff who processed wage errors means this huge backlog still isn’t resolved and the company is unlikely to have resolved this by next payday.”

It comes after Asda was forced to share draft results with investors after its auditor failed to sign off company accounts. The supermarket’s bosses shared its financials in a private presentation with lenders late last month, days after the payroll crisis emerged.

These figures showed unaudited profits of £248m from revenues of £25.6bn for 2023. This was despite a surge in finance costs to £441m, borne from the retailer’s £4.2bn debt pile.

An Asda spokesman said: “We unreservedly apologise to those colleagues impacted. We continue to work with colleague representatives, including our unions, to rectify any outstanding issues – as a matter of utmost priority.”