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Next apologises after IT failure left staff underpaid

By Rachel Douglass

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Business

Image: Next Plc

Next has issued an apology to its staff after the integration of a new computer system failed and left many underpaid for months.

The British retailer has been working to resolve issues caused by outsourcing its payroll functions to Oracle, a US technology company, which it struggled to merge with its own software.

Initially reported by the Sunday Times, problems first arose in February and have affected both weekly and monthly paid employees. The publication said that employees have been underpaid by up to 200 pounds a month, with some having to rely on food banks to make ends meet.

In response, Next reportedly assigned a dedicated team to spot errors and pay the missing money each week.

According to The Guardian, the retailer has declined to say how many of its workers have been affected, but a spokesperson for the company told the media outlet that the number has declined since its peak.

The spokesperson continued: “Over the last few months we have experienced a number of issues with our new payroll system and have been tackling them as a matter of urgency. 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.

“We are acutely aware of the problems these payroll errors have caused some of our colleagues. We sincerely apologise to all those affected and assure them that we are resolving these problems as a priority.”

Next
Oracle
Retail