Following a failed payment system update, high street fashion store Next underpaid thousands of employees, forcing them to use food banks in the midst of the rising cost of living problem.
The company, which employs about 43,000 people, underpaid a significant portion of its workforce after switching to a new Oracle payment system in February.
Employees expressed their ire on internal messaging systems since certain staff pension contributions were also taken out and not invested in the retirement saving plans.
As a result, some employees have turned to food banks, are unable to purchase fuel for their vehicles, and have to schedule vacations because they are unable to go to work.
Another incident involved a worker who was overpaid by more than £200 and was upset when head office employees and store managers recently attended a party at Birmingham’s NEC that included live music, food, and drink.
They wrote: “This is now the second week my pay has been wrong and I have only been working here for one month.” in a message posted on the retailer’s messaging platform.
“I haven’t received my pay for two weeks now, and at a time like this when everything’s getting more expensive, the last thing I need is to not get paid.”
A source informed The Sunday Times that “the majority of us haven’t been paid fairly since the change in system.”
She claimed that in order to pay for their living expenses, her partner works extra hours.
Managers make about £16.80 per hour, while shop floor employees make about £9.50.
Some employees were overpaid as a result of the payroll problems, and they missed payments for Universal Credit as a result.
The company Next reported pre-tax profits of £823 million last year, the highest level since its founding in 1982.
According to the newspaper, Next’s retail sales director Shonnagh Taylor recently informed staff that the business was receiving up to 113 calls per day from employees regarding pay-related issues.
This, according to what is known, has now decreased to about 50 per day.
The high street chain has been addressing the payroll issues urgently, a spokesperson for them told the newspaper.
‘This is one of the very few instances where Next has outsourced critical software and we have learnt some important lessons about integrating our in-house applications with third-party platforms,’ they said.
‘We are acutely aware of the problems these payroll errors have caused some of our colleagues.
We sincerely apologise to all those affected.’
They added that staff will not be impacted by issues with pension contributions.
Next and Oracle have been contacted for further comment.
Are you a Next employee who had issues with pay? Email jessica.warren@mailonline.co.uk