Employment Appeal Tribunal rules market pressures can justify pay gaps, reshaping equal pay claims across UK retail
The UK's Employment Appeal Tribunal (EAT) ruled Monday that Next was justified in paying warehouse staff more than shop-floor workers, overturning part of a 2024 equal pay ruling. The decision affects an ongoing legal dispute involving thousands of current and former Next employees, with several related pay issues still unresolved.
The EAT found that Next could rely on recruitment and retention pressures specific to warehouse roles to justify paying those workers a higher basic rate than store staff. The tribunal ruled that the original decision had erred in finding Next lacked a legitimate aim when setting different pay rates. The case covered the period from 2012 to 2023, during which women made up almost 78% of retail sales roles and men made up about 53% of warehouse roles.
The ruling's reasoning extends beyond Next. The EAT held that it can be justifiable for an employer to rely on market forces to pay one group more than another, where there is a demonstrable rationale for doing so.
Leigh Day, the law firm representing Next's claimants, has also filed equal pay claims against Asda, Tesco, Sainsbury's, Morrisons and Co-op on behalf of more than 112,000 store staff. Those retailers are facing similar claims and are expected to review the ruling's reasoning, according to trade reporting.
Next described the decision...
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