Tesco, Britain's largest supermarket chain, provided incorrect compensation to almost 140,000 employees due to errors in its payroll system. Almost 10m is owed to current and former workers after a system. error led to them being paid less than the national living wage. The company found that calculation errors were made when staff made voluntary contributions from their wages to benefits such as pensions, childcare vouchers, and cycle-to-work schemes. Chief Execu tive Matt Davies noted that as soon as the errors were discovered, action was taken to correct the underpay- ments, and apologies were issued. Tesco is not denying these errors and, going forward, is working to ensure that fair and appropriate compensation is provided to all employees. Employees are anxious to receive money owed to them as they need to meet their own financial obli- gations. As well, employees want to know that their employer is paying them fairly and accurately. CRITICAL THINKING QUESTIONS: 1. What other actions should Tesco take to rectify this situation? 2. Beyond legal obligations, why should a company ensure that employees are being paid properly? Scanned with CamScanner