Next shop workers win landmark equal pay case

27th Aug 2024 14:02

(Sharecast News) - Shop workers at high-street retailer Next won a landmark legal victory on Tuesday, after a six-year battle for equal pay, potentially leading to over £30m in compensation.

The employment tribunal's decision would affect 3,540 claimants, predominantly female retail sales staff, who argued they were paid less than their primarily-male counterparts in the warehouse.

According to the Guardian, Next defended the pay discrepancy by citing "market rates" and the need to attract warehouse staff around the clock, including nights, Sundays, and public holidays.

While the tribunal acknowledged the company's cost-cutting motivations and found no direct gender discrimination, it ruled that Next failed to justify the lower pay rates for retail workers.

The tribunal emphasised that financial reasons alone could not excuse unequal pay under the law.

The decision could have far-reaching implications, setting a precedent for similar claims against major UK supermarkets.

Over 112,000 store staff from Asda, Tesco, Sainsbury's, Morrisons, and the Co-op were currently pursuing comparable cases, which could now gain momentum following the Next ruling.

Next, which reported £918m in pre-tax profits for 2023, reportedly planned to appeal the decision.

The ruling mandated the equalisation of hourly pay, back pay compensation, and paid rest breaks for retail staff, aligning their benefits with those of warehouse employees.

Reporting by Josh White for Sharecast.com.