Press releases

Holiday pay repayments

Thursday 22 August 2013

Following a recent review of the Partnership's 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. The Partnership Board has therefore decided to make one-off additional payments to those affected.

Around 69,000 current Partners will receive an additional one-off payment this month reflecting the amounts due to them back dated to 2006. Individual payments will vary according to pay and shift patterns, with more than half of the recipients receiving under £120. 

The cost to the Partnership of these repayments and associated expenses will be around £40 million. This one-off cost will be reported in our half-year results in September. However, it will not be deducted from this year's Partnership Bonus pool. We expect future pensions liabilities to increase by approximately £7m as a result.

The Partnership's pay systems have been updated to ensure that all future holiday payments are correct. This change is expected to add around 0.5 per cent to our 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.'

Notes to editors

The John Lewis Partnership - The John Lewis Partnership operates 39 John Lewis shops across the UK (30 department stores and nine John Lewis at home), and 295 Waitrose shops. The business has annual gross sales of over £9.5bn. It is the UK's largest example of worker co-ownership where all 85,500 staff are Partners in the business.


For further information please contact:

Andrew Moys
Director of Communications
Telephone: 0207 592 6292

Simon Rigby
Citigate Dewe Rogerson
Telephone: 0207 638 9571