Next has successfully appealed a 2024 ruling that previously challenged its pay structure, securing a decision that allows the retailer to continue offering higher hourly wages to warehouse staff compared to shop floor employees. The Employment Appeal Tribunal overturned a core element of the earlier judgment, which had suggested the company was wrong to differentiate pay for roles deemed of equal value.
The initial 2024 ruling had placed over £30 million in potential back pay at stake for more than 3,500 current and former employees, the majority of whom are women. In its latest decision, the tribunal accepted Next’s argument that higher warehouse pay is justified by the specific recruitment and retention challenges associated with those roles, which do not affect the store-based workforce.
Describing the outcome as a “landmark victory” regarding the “key issue of basic pay,” Next stated that the tribunal confirmed the company’s right to utilize market forces when setting wages. The retailer emphasized that the ruling supports the principle that employers must be able to offer competitive rates to secure necessary staff without being automatically required to increase pay for other employee groups.
Despite this, the legal battle is far from over. Leigh Day, the law firm representing the store workers, labeled the conclusion on basic pay as “disappointing” and confirmed plans to appeal the decision. However, the firm noted that the tribunal did uphold other 2024 findings related to overtime premiums, night-time premiums, and paid rest breaks. Next has indicated it will seek permission to appeal those specific findings.
Both the original Employment Tribunal and the recent appeal hearing concluded that there was no evidence of direct sex discrimination within the company’s pay practices, despite the workforce demographics showing that store staff are predominantly female and warehouse workers are mostly male.
The implications of this case are being monitored closely across the retail sector, as major chains including Tesco, Asda, Morrisons, and Sainsbury’s are currently navigating similar long-running equal pay claims. The broader landscape of equal pay litigation remains active, with other public sector entities like Brighton and Hove City Council currently facing over 1,000 related cases, following significant settlements recently reached at Birmingham City Council. The report also notes that 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. The report also notes that questions are now being asked about if this result could set a precedent across the industry.
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