HR · 14 March 2017

Asda employees offered a pay rise for new flexible? contract

All Asda’s staff will be offered 8.50 per hour for more flexible working
Supermarket chain Asda has offered all its UK staff a pay rise in return for a new, flexible? employment contract.

Asda employees will be offered 8.50 per hour, an hourly rate the supermarket claims is one of the highest in the sector and is 1 per hour above the National Living Wage (NLW), for signing the new contract.

If they choose to sign the optional new contract, Asda employees will forego the right to any statutory paid leave, and may be forced to work on bank holidays.

All breaks during work will be unpaid under the terms of the new contract, and Asda has said it will reduce the night shift window the number of hours during the night during which staff receive premium pay for being on shift.

Currently, Asda workers receive an extra 2.04 per hour when they work between midnight and 6am. Under the new rules, these hours will be cut to between midnight and 5am, but the premium for working during this time will go up to 2.54.

The supermarket has promised that its other non-pay benefits, which include colleague discounts, pensions, share saves and bonus structures, remain unchanged.

Asda has insisted the so-called Your Choice? contract is not zero hours, with employees retaining a certain number of hours of guaranteed work each week.

The supermarket estimated that 95 per cent of its workforce would be better off under the terms of the new deal, some by as much as 1, 000 a year or more.

Commenting on the new measures, senior vice president of people at Asda, Hayley Tatum, said that the new contract would provide more freedom to workers to switch roles and improve their knowledge of the business.

colleagues can gain a broader level of experience across their store, which will in turn give them better opportunities to progress and develop their career in retail, added Tatum.

Asda’s Your Choice contract will be offered to all new employees, as well as its 135, 000 existing UK staff, ahead of the planned rise in the NLW in April. The increased rate of pay to workers under the contract will come into force on 8 October this year.



Fred Heritage was previously deputy editor at Business Advice. He has a BA in politics and international relations from the University of Kent and an MA in international conflict from Kings College London.

Managing Your Fleet