Next wins key appeal to overturn £30m equal pay ruling
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Next has won an appeal allowing it to keep paying warehouse workers a higher hourly rate than shop floor staff in a long running battle over equal pay.
Image source: Getty Images
By Emma Simpson Business correspondent
Published 1 hour ago
Next has won an appeal allowing it to maintain the disparity in pay rates between its warehouse and shop floor workers, overturning a significant portion of a landmark ruling in 2024.
The Employment Appeal Tribunal has reversed a key aspect of the original judgement which found Next liable for unequal pay. This initial ruling had anticipated back pay of over £30 million for more than 3,500 current and former employees, mainly women.
Following Next's successful appeal, the law firm Leigh Day, representing store workers, expressed disappointment, stating their intention to appeal further. The tribunal recognized that Next's justification for paying higher rates was based on recruitment and retention pressures specifically facing warehouse staff.
Next described this as a "landmark victory" on the "key issue of basic pay". They emphasized the decision's affirmation of market forces in employment, arguing that employers should be able to adjust wages according to their industry's needs without obligating them to raise rates for other employees unless justified.
While judges upheld previous findings regarding night-time premiums, overtime premiums, and paid rest breaks, Next intends to seek permission to appeal these decisions as well.
It's important to note that both the original Employment Tribunal and Appeal Tribunal concluded that there was no direct sex discrimination in Next's pay rates, with shop floor staff predominantly female and warehouse workers predominantly male.
The potential implications of this ruling extend beyond Next, with supermarkets like Tesco, Asda, Morrisons, and Sainsbury's facing similar lengthy equal pay claims. Additionally, recent settlements in equal pay cases at Birmingham City Council and Brighton and Hove City Council highlight the ongoing significance of this issue across local government.