23 Aug 2013

£40 million pay problem at retailer

8:14 am on 23 August 2013

Seven years of salary underpayments by retailer John Lewis in Britain will cost the company £40 million ($US62.8 million) to fix.

The group, which has 39 department stores and also owns Waitrose, a supermarket chain with 295 branches, said on Thursday that a staff member and a review of holiday pay policy had jointly brought the blunder to light.

''We're doing everything we can to correct it and we're paying back as far as we can with the data we've got," said a spokesman on Thursday.

All 85,500 John Lewis employees are partners in the business. About 69,000 will receive one-off payments reflecting amounts due to them, back-dated to 2006.

Individual payments will vary according to pay and shift patterns. More than half of the recipients will receive under £120.

John Lewis added that its pay systems had been updated to ensure that all future holiday payments are correct.