Tesco To Pay Wages 'Directly Into Accounts’ Of Any Staff Wrongly Paid Via Tuxedo Card

Tesco has said it will ratify any errors that led to temporary staff being paid their wages using a prepaid card that costs 50p per withdrawal.

It comes after the supermarket giant was accused of incurring unnecessary costs on its staff by paying their wages through Tuxedo Cards.

Several seasonal temporary workers have told Telegraph they received letters telling them their wages would be paid onto the card, which uses the Mastercard payment system, rather than directly into their accounts.

Credit: PA Images

The card has a £9.95 activation fee and a monthly fee of £4.99 on some plans, as well as charging 50p for ATM withdrawals.

However, Tesco has denied that it is company policy to pay it staff through the cards, claiming 'fewer than 200 staff' are paid that way.

A Tesco spokesperson told LADbible: "Our policy is always to pay colleagues directly into their bank accounts wherever possible.

"We only issue a Tuxedo card by exception and as a last resort in situations where colleagues are unable to share bank details with us.

"Currently, of the 300,000 colleagues we employ in the UK, fewer than 200 are paid by Tuxedo Cards each month."

The store is now encouraging anybody who is being wrongly paid via the card to contact them to avoid paying the additional fees.

Credit: PA Images

The spokesperson added: "If a colleague is being paid with a Tuxedo card and they can supply bank details, they should let us know and we will pay their wages directly into their account."

It comes after two people told the Telegraph they were forced to be paid via the card.

One mother told the paper: "My daughter was told they only use these cards in exceptional circumstances - but she wasn't given the choice to opt out."

Another worker said she took a job elsewhere after learning she would be paid via the card: "There was no mention of the cards in the recruitment adverts, the interview or the induction."

Featured Image Credit: PA Images

James Dawson

James Dawson is a Journalist at LADbible. He has contributed articles to LADbible’s ‘Knowing Me, Knowing EU’ series on the EU referendum, the 'Electoral Dysfunction' series on the 2017 general election, the ‘U OK M8?’ series tackling mental health amongst young men, and for its ‘Climate Change’ initiative in partnership with National Geographic.

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