Next Overturns Key Equal Pay Ruling in UK Appeal, Maintains Warehouse Pay Rates
Next Wins Appeal on Equal Pay Case: Key Details and Implications
Background of the Equal Pay Dispute
Sept 7 (Reuters) - British clothing retailer Next said on Monday it has won an appeal allowing it to keep paying warehouse workers more than sales consultants, overturning a key part of a landmark equal pay ruling from two years ago.
Employment Appeal Tribunal’s Decision
Justification for Pay Differences
• The Employment Appeal Tribunal accepted that Next was justified in relying on market forces to pay warehouse operatives more than shop-floor staff, given recruitment and retention pressures that did not apply to store workers.
Overturning the 2024 Tribunal Ruling
• The ruling overturns a key part of a 2024 Employment Tribunal decision, which found that Next had failed to show that paying its sales consultants, who are overwhelmingly women, lower rates than its warehouse workers was not sex discrimination.
Findings on Sex Discrimination
• Both the original Employment Tribunal and the Appeal Tribunal found no direct sex discrimination in its pay rates, the retailer said.
Impact on Workers and Next’s Response
Legal and Financial Implications
• More than 3,500 current and former shop workers had won the six-year legal fight in 2024, with the workers entitled to back pay estimated at more than £30 million.
Next’s Future Actions
Appeal on Remaining Terms
• Next said it had now won the majority of the terms challenged, including warehouse bonus pay, and intends to seek permission to appeal on the remaining terms, such as paid rest breaks.
(Reporting by Raechel Thankam Job in Bengaluru; Editing by Janane Venkatraman)
