Next wins key appeal to overturn £30m equal pay ruling
A judge ruled Next can pay warehouse workers more because it is harder to recruit and retain them.
Next, the UK retailer, has won an appeal to overturn a £30 million equal pay ruling that had required it to pay warehouse workers higher hourly rates than shop floor staff. The Employment Appeal Tribunal (EAT) upheld the right of Next to pay different wages based on market forces, rejecting the 2024 ruling that found Next had paid its warehouse staff more for equal work.
Over 3,500 former and current employees, primarily women, were set to receive back pay totaling more than £30 million. The EAT's decision focused on the key issue of basic pay, while confirming other aspects of the original ruling, such as night-time premiums, overtime premiums, and paid rest breaks. Next described the outcome as a "landmark victory," emphasizing the company's justification for paying higher rates to warehouse workers due to recruitment and retention pressures not faced by store employees.
The retailer and the law firm representing the shop floor staff plan to appeal the decision on other elements of the original ruling. The result may set a precedent for similar equal pay claims across the retail industry, including major competitors like Tesco, Asda, Morrisons, and Sainsbury's.
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