John Lewis puts aside £36m after not complying with minimum wage regulations

This is what the firm said

John Lewis has had to put aside £36m after it found that its staff rota systems have not been complying with minimum wage regulations.

The firm has said it will work with HM Revenue and Customs to investigate its practice of “pay averaging”.

The firm said in its annual report: “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 NMW regulations”

The retailer is booking a £36m exceptional charge to help cover any retrospective payments that are required for current and former partners affected.

Chairman Sir Charlie Mayfield is also waiving his £66,000 bonus for the year.

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