A major UK supermarket has admitted it underpaid tens of thousands of workers after a payroll system failure that went undetected for more than a year — and has now pledged to repay every penny with interest.
Asda has confirmed that around 50,000+ current and former colleagues were underpaid for holiday pay and sickness-related pay over a 15-month period, stretching from February 2024 until May 2025.
The error was uncovered following an internal review of the retailer’s payroll processes and was linked to its Project Future IT upgrade, a major systems overhaul designed to modernise internal operations across the business.
What went wrong — and for how long
At the heart of the issue was the introduction of a new payroll system. While intended to improve efficiency, the change led to miscalculations in how some holiday and sickness payments were processed.
Asda has been clear that the problem did not affect base hourly pay, but instead related to how certain entitlements were calculated when colleagues were away from work due to illness or annual leave.
The error persisted for more than a year before being fully identified, affecting thousands of workers across Asda’s UK estate — including Supercentres, Superstores, Supermarkets and Asda Express locations.
This is not the first time Project Future has been linked to payroll disruption. In March 2024, nearly 10,000 workers were underpaid following an earlier system issue. Those colleagues were repaid at the time, but the later investigation revealed the scale of the problem was far wider than initially thought.
How much workers are owed
Asda began contacting affected workers on 29 January, notifying both current staff and former colleagues of the underpayments.
According to the retailer:
- Around 80% of those affected were underpaid by less than £19
- The total repayment bill could reach around £1 million
- A final figure has not yet been disclosed
While individual sums may appear small, the sheer number of workers involved has raised questions about oversight, testing and safeguards during large-scale payroll transitions.
Repayment with interest promised
In an effort to draw a line under the issue, Asda has committed to a comprehensive repayment plan.
Key assurances include:
- Full repayment of all underpaid amounts
- Payments made via a February payslip
- 12% interest added to every refund
- Inclusion of former colleagues, not just current employees
James Goodman, Asda’s Chief People Officer, said no colleague would be left financially worse off, stressing that the company would repay every penny owed.
In a further move aimed at fairness, Asda confirmed that:
- Any colleague who was overpaid due to the error will not be asked to return the money
- Any funds recovered from workers in March 2024, linked to earlier system issues, will now be refunded, again with interest
Has the issue been fixed?
Asda says corrective measures were implemented in May 2025, and that since then all holiday and sickness payments have been processed correctly.
The company now considers the payroll system stable and has stated that additional checks are in place to prevent a recurrence.
With more than 150,000 workers employed across the UK, even small technical faults can have wide-reaching consequences — a reality highlighted by this episode.
Why this matters for UK workers
For UK workers, accurate pay is not simply an administrative detail. Holiday and sickness pay are critical protections, particularly at a time when household budgets remain under pressure.
This case underlines the importance of transparency when payroll errors occur, and of swift, clear communication with those affected. The decision to apply interest and to avoid reclaiming overpayments will be closely watched across the retail sector.
At The Workers Union, the focus remains on ensuring working people are informed, treated fairly and not disadvantaged by system failures beyond their control.
