UK's John Lewis Takes 40 Mln Stg Hit For Staff Pay Error

by
Reuters
British retailer the John Lewis Partnership said it had discovered an error in calculating pay to staff who work Sundays and bank holidays that would cost 40 million pounds ($62.8 million) to fix.
Jhon Lewis
 
British retailer the John Lewis Partnership said it had discovered an error in calculating pay to staff who work Sundays and bank holidays that would cost 40 million pounds ($62.8 million) to fix.
 
The employee-owned retailer, that runs department stores and the upmarket Waitrose supermarket chain, said on Thursday 69,000 of its 85,500 staff, known as partners, would this month receive additional one-off payments reflecting the amounts due to them back dated to 2006.
 
It said individual payments will vary according to pay and shift patterns, with more than half of the recipients receiving under 120 pounds.
 
John Lewis said the payment error came to light following a recent review of its holiday pay policy.
 
"It became clear that partners who receive certain additions to pay, such as premiums for working on Sunday or bank holidays, have not been paid correctly under the Working Time Regulations legislation," it said.
 
John Lewis will account for the 40 million pounds, which include repayments plus associated administration costs, in its half year results due to be published Sept. 12 but will not deduct the sum from this year's partnership bonus.
 
It expects future pensions liabilities to increase by about 7 million pounds, while annual pay costs will rise by about 0.5 percent.
 
John Lewis said its pay systems have been updated to ensure that all future holiday payments are correct.