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Next wins appeal to overturn equal pay ruling
The tribunal said Next could pay warehouse staff more because recruitment and retention pressures justified the higher rate.
The Employment Appeal Tribunal ruled on Monday that Next is justified in paying warehouse staff higher hourly rates than store workers, overturning a key 2024 judgment that had strengthened equal pay claims.
Next argued it paid higher wages to warehouse staff to ensure recruitment and retention, rejecting claims that gender influenced pay decisions. The tribunal accepted these were 'sound business reasons' justifying the disparity.
Representing 3,540 retail sales consultants, law firm Leigh Day called the ruling 'disappointing' and confirmed it will appeal. The tribunal upheld prior findings on lower overtime and rest break pay for store staff.
Other major retailers including Tesco, Asda, and Morrisons face similar equal pay claims where compensation could approach £4 billion. The ruling clarifies employers may justify pay differences by demonstrating recruitment pressures and a 'good rationale.'
Further proceedings will address remaining disputes, including a Sunday premium payment question returning to the Employment Tribunal. The case remains central to how UK retailers implement pay transparency and resolve equality claims.