23 January 2015
John Lewis Partnership has announced that with effect from February 2015 , when calculating holiday pay it will follow the Employment Appeal Tribunal ruling last November that holiday pay must take account of non guaranteed overtime.
In addition, the organisation will make a one-off back payment to cover holidays taken since the 1st of November 2014 that may have been underpaid in an effort to “align as closely as possible to the date of the ruling” which was the 4th of November.
The employer said that the cost of these changes will be about an extra £12 million a year. The majority of this cost will be incurred at Waitrose where paid overtime is more common than at John Lewis.
The organisation said the one-off back-payment will cost about £10 million this financial year, to be made up of £3 million for the back payment and £7 million to recognise an increase in pension liabilities.