A landmark tribunal decision ruled in favour of 3,540 Next employees in their equal pay claim.
- The tribunal found that store staff, predominantly women, were paid less than their male warehouse counterparts.
- Compensation will be provided to eligible employees, covering back-pay for up to six years.
- Next intends to appeal, arguing significant legal points remain unresolved.
- The initial ruling rejected most claims of direct discrimination and bonus pay disparities.
A significant tribunal decision has been made concerning 3,540 current and former employees of Next Retail Limited and Next Distribution Limited, marking the conclusion of a six-year legal challenge for equal pay. The tribunal ruled that these employees should receive equal pay as their warehouse counterparts, potentially costing Next over £30 million.
The tribunal’s unanimous decision emphasised that the predominantly female store staff should not be compensated less than warehouse employees, who are predominantly male. This case is recognised as the first equal pay group action in the private sector to reach a tribunal verdict.
Compensation entitlement extends to back-pay for up to six years, benefitting those who brought the claim. Helen Scarsbrook, a lead claimant, expressed gratitude towards the judges, stating: “Anyone who works in retail knows that it is a physically and emotionally tough job… You become so used to having your work undervalued that you can easily start to doubt it yourself.”
Despite the decision, Next plans to appeal, highlighting unresolved legal matters. According to a company spokesperson, while the claim succeeded in some aspects, the tribunal dismissed most direct discrimination claims and those concerning bonus pay. They noted serious criticisms of the claimants’ expert evidence and the tribunal’s acceptance of Next’s expert witnesses.
The outcome of the appeal process remains to be seen; however, this decision already marks a pivotal moment for retail employees seeking equal pay.
The tribunal’s decision represents a crucial progression in the fight for equal pay within the retail sector.
