A significant payroll error at supermarket giant Asda has impacted over 53,000 current and former employees, with the company now pledging to fully reimburse all affected individuals with added interest. The blunder, which occurred due to issues with a new payroll system implemented in February 2024, led to underpayments related to sickness and holiday entitlements between that date and May 2025.
Scope of the Underpayment and Company Response
Asda has confirmed that more than eighty percent of the affected staff members are owed less than nineteen pounds in total, highlighting that while widespread, the individual financial discrepancies are relatively modest for most. The company asserts that the payroll system has been functioning correctly since May 2025, and all underpaid colleagues are scheduled to receive their full owed amounts, plus a twelve percent interest payment, in their February 2026 pay.
Leadership Communication and Assurance
In a letter to employees dated January 2026, Asda's Chairman, Allan Leighton, detailed the completion of a review into the payroll mishap, which involved external auditors. He explicitly stated, "No colleague will be left out of pocket – we will repay every penny of what is owed in the February pay, as well as an additional interest payment of 12%." This commitment aims to restore trust and ensure financial fairness for all impacted workers.
Resolution of Overpayment Issues
In a related development, Mr. Leighton also addressed a separate overpayment issue from March 2024, announcing that colleagues who were overpaid will not be required to return the funds. "While we are not contacting any colleagues who have been overpaid, we will not be claiming any money back," he explained. Furthermore, Asda will refund any money previously recovered from employees due to that earlier error, ensuring equitable treatment across the board.
Official Statements and Future Safeguards
James Goodman, Chief People Officer at Asda, reinforced the company's stance, stating, "No Asda colleague will be worse off financially. Whether you currently work with us or have worked with us, we are paying back every penny owed with 12% interest." He attributed the payroll problems to the transition to a system known as Project Future and confirmed that external experts have validated steps taken to prevent similar incidents in the future, underscoring Asda's commitment to operational integrity and employee welfare.
