Asda plans crackdown in 1,115 stores as consultation details emerge

Asda is preparing to implement stricter measures regarding sick leave as part of renewed turnaround initiatives.

The under-pressure supermarket giant has formulated more stringent disciplinary policies during an ongoing consultation process, heightening the likelihood of staff dismissal for taking successive periods of illness-related absence.

Under current arrangements, employees exceeding a 3 per cent absence threshold trigger a review process, followed by two informal stages before management initiates formal disciplinary proceedings.

Workers’ absence histories are currently wiped clean after six months under existing regulations, the Telegraph reported. Nevertheless, Asda is now considering extending this period to 12 months, amplifying the probability of employees facing punishment through an escalating disciplinary framework that could ultimately result in termination.

The consultation has generated anxiety throughout Asda’s workforce, particularly amongst those managing mental health conditions and disabilities, according to reports. No alterations have been implemented during the consultation phase, which could impact over 150,000 staff members across 1,200 outlets. One source revealed: “In reality, it means you will think twice about taking sick leave as you will be faced with disciplinary action far quicker than you would have done before.”

Another insider suggested it represented Asda’s attempt to “put the scarers on people” during a period when employee morale remains depressed. “Loads of people are worried about losing their jobs,” remarked one worker. “In my eyes, it is a bad decision.”

This development emerges as Asda endeavours to restructure the enterprise.

Allan Leighton, the retailer’s executive chairman, who was appointed last year to spearhead a revival attempt, has seen Asda’s share of the grocery market drop to a record low of 11.6pc. This is a significant decrease from 14.6pc in 2021, when Asda was purchased by private equity firm TDR Capital and Mohsin and Zuber Issa in a debt-driven £6.8bn transaction.

Years of cost-cutting have led to a steep decline in the company’s performance, including a drastic reduction in staff hours and the loss of hundreds of jobs. Mr Leighton has pledged to reinstate hours, although some may interpret this latest clampdown as an effort to cut costs – with staff potentially less likely to take sick leave for fear of repercussions.

An Asda spokesperson stated: “We are consulting with elected colleague representative groups on a proposal to adjust our short-term absence policy. This proposal is at an early stage and was shared in confidence with these groups as part of the consultation process. No decisions have been made, and no changes have been implemented.”