John Lewis is furious after being named on a “name and shame” list for breaking minimum wage laws.
JOHN Lewis Partnership (JLP) is outraged after being named and shamed for failing to fulfill minimum wage laws, claiming that the “technical break” that occurred four years ago has been remedied and made public.
The Department for Business (BEIS) has made public a list of 191 companies, including John Lewis Partnership, that it claims have failed to meet their employment commitments. From 2011 to 2018, it is claimed that companies such as Pret A Manger and Sheffield United Football Club jointly underpaid over 34,000 workers by £2.1 million. HM Revenue and Customs forced nearly 200 companies on the list to pay back what they owed, and they were fined an additional £3.2 million, according to the BEIS.
JLP, on the other hand, has reacted angrily to its inclusion on the list, claiming that it acted in the best interests of its employees over a 2017 issue involving difficulty in implementing new pay standards.
The partnership stated at the time that it had set aside several million pounds as a precaution and was working with HMRC to ensure that money were paid to impacted staff as soon as possible.
Partners received a total of £950,000 in compensation.
However, a person close to JLP told Sky News that the company was growing increasingly irritated by its position on the list and requested that the system be modified.
According to the newspaper, individuals behind the list believed JLP should be on it due to a slew of failures, including salary deductions for uniforms.
“We’re astonished and dismayed that BEIS has chosen to reveal this today,” a JLP representative stated.
“This was a four-year-old technical flaw that has since been corrected and which we made public at the time.
“The problem developed because the partnership smooths compensation so that partners with variable income receive the same amount each month, which makes budgeting easier for them.
“Our average minimum hourly pay has never been less than the national minimum wage and is now 15% higher.”
The majority of the entities on BEISS’s new list are small businesses, such as child care providers and hotels.
Pret A Manger’s inclusion, for an underpayment of nearly £10,000, was due to a past error in the interpretation of salary sacrifice for childcare vouchers, and was moved too soon, according to a representative. “Brinkwire News in Condensed Form.”