The John Lewis Partnership has set aside £36 million to cover retrospective payments after finding its payment scheme did not match with minimum wage regulations.
According to The Telegraph the department store’s staff rota system may not comply with the government’s regulations.
John Lewis Partnership has stated it would work alongside HM Revenue and Customs to investigate its “pay averaging scheme” designed to provide consistent pay for its staff.
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“This arrangement was implemented to support partners with a steady and reliable monthly income, but we now believe this arrangement may not meet the strict timing requirements for calculating compliance with the National Minimum Wage regulations,” said the company, which owns the John Lewis and Waitrose chains.
Meanwhile, John Lewis Partnership chairman Sir Charlie Mayfield has waived his £66,000 bonus for the 2016/17 financial year.
The news comes after it was announced that retail company’s staff bonus payouts would come at the lowest levels since the 1950s, down to six per cent compared to 10 per cent last year.
More than 380 jobs are also being cut at the retailer amid an overhaul of its café operations.