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Latest NewsPayroll

Next payroll problem leaves employees short

by Jo Faragher 18 Jul 2022
by Jo Faragher 18 Jul 2022 David Burton / Alamy Stock Photo
David Burton / Alamy Stock Photo

Next has issued an apology to staff after a new computer system led to many of them being underpaid for months.

The problems emerged in February after the company outsourced its payroll to software company Oracle, and led to some employees having pension contributions deducted but not invested in retirement funds.

A report in the Sunday Times quoted one shop floor employee who had been underpaid by more than £200 in one month complaining about a party held at the NEC in Birmingham for store managers and head office staff.

Some employees had been overpaid due to problems with the new system, the report said, meaning they were not able to claim Universal Credit.

“Most of us haven’t been paid right since the change in system. A lot of people are using food banks or putting holiday days in because they can’t afford to fuel their cars to get to work,” said one worker.

Payroll problems

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The report suggested that Next had been receiving more than 100 calls a day from employees asking about pay issues, although this has now dropped to around 50 a day.

The company said it was dealing with the problems “as a matter of urgency”.

It said no staff would be out of pocket due to errors made with pension contributions.

The problems occurred just days after Asda faced similar issues with its payroll provider, SD Worx. The supermarket told the Scottish Parliament that the external payroll provider had made almost 11,000 errors in recent months, affecting the wages of more than 5,000 staff.

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Personnel Today has contacted Next for a response. Oracle has declined to comment.

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Jo Faragher

Jo Faragher has been an employment and business journalist for 20 years. She regularly contributes to Personnel Today and writes features for a number of national business and membership magazines. Jo is also the author of 'Good Work, Great Technology', published in 2022 by Clink Street Publishing, charting the relationship between effective workplace technology and productive and happy employees. She won the Willis Towers Watson HR journalist of the year award in 2015 and has been highly commended twice.

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