- 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.
- The Employment Appeal Tribunal has overturned a key part of a ruling which found the retailer was wrong to pay its warehouse staff higher basic pay than shop floor workers for jobs of equal value.
- More than 3,500 current and former employees, mainly women, had been set to share potentially more than £30m in back pay as a result of that judgement.
- Next described the decision as a 'landmark victory' succeeding on the 'key issue of basic pay'.
- The tribunal accepted that Next was justified in paying higher rates because of recruitment and retention pressures for warehouse workers.
- Leigh Day, representing store workers, called the conclusion on basic pay 'disappointing' and said it will appeal the decision.
- The tribunal upheld findings on night-time premiums, overtime premiums, and paid rest breaks; Next will seek permission to appeal these.
- Shop floor staff are predominantly women while warehouse workers are predominantly male.
- Next employs more than 20,000 store staff across 458 stores in the UK and Ireland.
- Questions are now being asked about if this result could set a precedent across the industry.
- Tesco, Asda, Morrisons, and Sainsbury's are all involved in similar long-running claims and will be studying the findings closely.
Next has achieved a significant legal victory by overturning a ruling that would have required equal basic pay for its shop and warehouse staff.
The Employment Appeal Tribunal found that Next's justification for higher pay rates for warehouse workers, primarily due to recruitment and retention challenges, was valid.2
"Next described the decision as a 'landmark victory' succeeding on the 'key issue of basic pay.'" This ruling affects over 3,500 employees, predominantly women, who were poised to receive more than £30 million in back pay.4
However, the tribunal upheld other findings, including those related to night-time and overtime premiums, and paid rest breaks, indicating that Next's pay practices still disadvantage female employees.
Elizabeth George, a partner at Leigh Day representing the claimants, stated, "I am pleased that the employment appeal tribunal rejected Next’s arguments that its pay practices do not disadvantage women. They plainly do and the appeal tribunal firmly recognised that."
The case, which spans from 2012 to 2023, highlighted the gender disparity in pay, with women making up nearly 78% of retail sales jobs compared to 53% of warehouse staff.
Next argued that the ruling threatened the viability of its stores and placed it at a disadvantage compared to competitors who outsource warehouse operations.
The retailer plans to appeal other aspects of the ruling, including lower Sunday premium payments and overtime pay discrepancies.
“The Employment Appeal Tribunal upheld findings on night-time premiums, overtime premiums, and paid rest breaks, which Next will seek permission to appeal. Leigh Day, representing store workers, called the basic pay conclusion 'disappointing' and plans to appeal, while similar claims at Tesco, Asda, Morrisons, and Sainsbury's may be affected.”
The Guardian
