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Waitrose and John Lewis staff to share holiday bonus of £22m

RBR Staff Writer Published 19 January 2015

A change brought about by an employment tribunal in the calculation of holiday pay by British companies has been welcomed by the staff of Waitrose and John Lewis, who will share a bonus of £22m in pay and pension contributions this year, as a result.


One and a half years earlier, 69,000 employees had shared a bonus of £40m in holiday arrears after John Lewis partnership owned up to a seven-year miscalculation in employee wages, reports Guardian.

This February, 60,000 employees will be sharing £3m, while John Lewis will receive an additional £7m in pension liabilities. Over the year, extra holiday pay of £12m will also be given to the employees, which according to the company, will be the additional costs incurred due to the tribunal ruling.

Generally announced in the beginning of March, the average employee gets a holiday bonus of £62-£188.

The November tribunal ruling had found that Britain had not been interpreting European law properly and John Lewis has quickly followed the judgement to change its stance accordingly. Earlier, Britain only took into account basic pay, whereas if holiday pay is to be calculated according to European working laws, regular overtime pay must also be counted.

Director of personnel for John Lewis, Tracey Killen, stated: "The John Lewis Partnership has acted promptly to change its pay practices in response to the Employment Appeal Tribunal ruling. We believe our approach is a fair and practical outcome for our partners in light of this decision."

It has been estimated that one out of six British employees are eligible for regular overtime pay, which means that around five million are entitled to the holiday bonus.

According to the tribunal, apart from the future revised holiday bonus, employees can claim arrears of up to three months.

Image: Waitorse and John Lewis employees to get bonus as a result of tribunal ruling. Photo courtsey of Freedigitalphotos.net.