May 9, 2017
John Lewis sets aside £36m for minimum wage error
John Lewis has set aside £36m to cover potential back payments to staff after breaching National Minimum Wage rules. It said few workers had actually lost out and its hourly rates were never below the minimum wage. As a result, it has revised down its 2016-17 profits before tax for 2016 from £488.2m to £452.2m. John Lewis - which is co-owned by its workers, which it calls partners - said it had used pay averaging since 2006 with the consent of staff. The error comes three years after John Lewis was forced to pay employees an extra £40m when it realised it had been miscalculating holiday pay for seven years. Some of its staff were paid less than the National Living Wage after contributing part of their salary to pensions, childcare and cycle to work schemes.
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