Chris Mann reflected<\/a>, \u201cSeems to me that, if you’re lucky and, were overpaid by \u00a3499, you can pocket the lot. If you’re unlucky and were overpaid \u00a3501, you can only retain \u00a3100? I’m struggling to see how this is \u2018reasonable\u2019? Brings a new meaning to creative accounting, if you ask me.\u201d<\/p>\nFor individuals who received over the magical \u00a3500 barrier, the clawback will likely be a stressful addendum to losing their jobs, said Kate Coles, an FD mentor and coach, and former finance manager for Graze and Innocent.<\/p>\n
\u201cThe money may well be spent already, or have been earmarked for an expense while they search for a new job. Again, this will be putting these redundant staff under an extra level of stress.\u201d<\/p>\n
From Tesco\u2019s side, there needs to be a cost-benefit analysis, however. Any potential clawback of redundancy pay would not only be a potential PR nightmare, it would also be an expensive legal process, said Stephen Ravenscroft, partner and head of employment at Memery Crystal. <\/p>\n
\u201cIf an ex-employee was unwilling to repay the money, it would require some form of legal action, either in county court or small claims court, on an individual basis,\u201d he explained. Any kind of mass action would be impossible.<\/p>\n
Tesco\u2019s only non-legal recourse, Ravenscroft added, would be if the redundancy payment was made under a settlement agreement and there are other payments to be made under that settlement. \u201cIf that\u2019s the case, Tesco might be able to deduct money from any payments to be made to them\u201d.<\/p>\n
As AccountingWEB member Ireallyshouldknowthisbut observed, instead of chasing down sacked employees for relatively small amounts, Tesco will be better served by reassessing \u201cits control procedures in payroll and who made a mess of it\u201d.<\/p>\n
\u201cI’d not try and claw it back as its likely to be not only really bad PR, but whilst you might get back a few [thousand] willingly, its unlikely to be economic to get it out of many peoples hands. Sacked employees don’t usually take kindly\u00a0to a clawback.\u201d<\/p>\n<\/p><\/div>\n
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Tesco plans clawback of mistaken redundancy pay from fired staff A tough situation for Tesco has been made even trickier after a payroll error caused hundreds of ex-employees to be overpaid and underpaid their redundancy pay. From an accounting perspective, it\u2019s been a difficult few years for the UK\u2019s biggest supermarket chain by market share. In 2014, only three weeks […]<\/p>\n","protected":false},"author":2,"featured_media":5767,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":[],"categories":[25],"tags":[],"_links":{"self":[{"href":"https:\/\/sloane.co.uk\/wp-json\/wp\/v2\/posts\/3815"}],"collection":[{"href":"https:\/\/sloane.co.uk\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/sloane.co.uk\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/sloane.co.uk\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/sloane.co.uk\/wp-json\/wp\/v2\/comments?post=3815"}],"version-history":[{"count":0,"href":"https:\/\/sloane.co.uk\/wp-json\/wp\/v2\/posts\/3815\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/sloane.co.uk\/wp-json\/wp\/v2\/media\/5767"}],"wp:attachment":[{"href":"https:\/\/sloane.co.uk\/wp-json\/wp\/v2\/media?parent=3815"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/sloane.co.uk\/wp-json\/wp\/v2\/categories?post=3815"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/sloane.co.uk\/wp-json\/wp\/v2\/tags?post=3815"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}