UK-based department store chain John Lewis has taken a £36 million hit to its profits to cover potential back payments to staff after admitting that it breached national minimum wage rules, reports the Telegraph. The problem occurred because of its practice of pay averaging, which ensures employees receive the same monthly salary year-round regardless of how many hours they work. John Lewis admitted the payroll error affected all staff who had been paid by the hour over the past six years, which means all employees paid by the hour over this period could be due compensation. John Lewis stated that “Once we have completed our detailed review, we will make any retrospective payments required to current and former partners affected."