John Lewis Partnership is to repay £40m to staff after it reviewed its pay policy and realised it was not paying them correctly.
Around 69,000 Partners will receive an additional payment this month as the retailer seeks to reimburse all affected.
The one-off payment will be backdated to 2006 and will be published in the partnerships half-year results in September, but will not affect this year’s Partnership bonus pool.
The Partnership, which has annual gross sales of over £9.5bn, said that the payment change is expected to add around 0.5 per cent to its annual pay costs.
Tracey Killen, Director of Personnel, 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.’