John Lewis in holiday payout

The John Lewis Partnership is paying out £40m to its staff after miscalculating holiday pay over the last seven years, leaving some workers entitled to thousands of pounds in compensation.

It said 69,000 of its partners were receiving the additional sums this month – representing an average £580 per employee – after the miscalculations dating back to 2006.

The error was spotted during a review this year while an employee pointed it out around the same time.