Loblaws has apologized to employees in Surrey, B.C., and dropped demands they repay thousands of dollars in mistaken overpayments, following a CBC News investigation.

The employees received the payout when the grocery chain's store was converted into an Your Independent Grocer outlet, which operates as a Loblaws franchise.

About 20 workers had opted for a one-time lump sum compensation payment, in exchange for agreeing to new limits on their wages and benefits.

But Loblaws said it mistakenly paid them too much and sent them letters demanding immediate repayment of thousands of dollars within 20 days, under threat of legal action.

After CBC News investigated, the company changed its tactics and issued an apology in a written statement to CBC.

Employees at Your Independent Grocer store in Surrey, B.C., agreed to take a lump sum payment in exchange for a wage cut and reduced benefits. (CBC)

"Through ongoing discussions with those employees, we understand that our request for repayment may have come across as insensitive, given that some employees may have made saving, spending or investing decisions relying on the overpayment," said the statement.

"Accordingly, we have apologized for any inconvenience and will not seek repayment."

Read the original offer from Loblaws.

Read the letter regarding overpayment sent to Connor Greenwell from Loblaws.

If you have information on this or any other story CBC should investigate, email us: Investigate@cbc.ca

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