John Lewis staff to receive £40m after Employment Law blunder

Workers at John Lewis and Waitrose who were underpaid for working Sundays and Bank Holidays over the past seven years will be paid £40m in compensation.

The John Lewis Partnership said staff were inadvertently mis-paid because its pay calculations didn’t comply correctly with employment laws.

The group said 69,000 employees were affected and will all receive on-off payments averaging at £580.

The business said individual payments would vary according to pay and shift patterns, with more than half of recipients being given less than £120, but some receiving a few thousand pounds

Most of those affected work on shop floors, call centres or in distribution warehouses.

The partnership will also add £7m to future pension liabilities.

Head of personnel Tracey Killen said: “As soon as we established that we were not implementing the Working Time Regulations correctly, we worked quickly to make the repayments to our partners in a way that is both fair and responsible.”

The business said individual payments would vary according to pay and shift patterns, with more than half of recipients being given less than £120, but some receiving a few thousand pounds.

The John Lewis Partnership operates 39 John Lewis stores across the UK as well as 295 Waitrose shops and has annual gross sales of more than £9.5 billion.