Over 3,500 Retail Workers have won a group action equal pay case against retail giant Next.

The Employment Tribunal ruled that Next failed to demonstrate that the lower pay received by their Retail Consultants (77.5% female from 2012-2023) in comparison to their Warehouse Operators (52.75% male from 2012-2023) was not the result of gender-based discrimination.

Next issued a statement saying, “There was no conscious or sub-conscious gender influence in the way Next set pay rates”, and while the tribunal accepted that the £0.40 - £3.00 per hour pay differential was not ‘direct discrimination’, the ruling would indicate that financial decisions cannot be used as a blanket argument against equal pay rates.

The multinational clothing, footwear, and home products retailer had argued that the difference in pay between the Retail Consultant and Warehouse Operator positions was because of the going ‘market rate’ for each role and to ensure business viability. However, the Employment Tribunal’s ruling explains there must be a more compelling business reason for differing pay arrangements to be considered justifiable, otherwise ‘market forces’ could perpetually maintain existing industry-wide indirectly discriminatory pay practices.

Employment Barrister Matthew Todd commented on what could be a precedent-setting case, stating, "The success of the equal pay group action against Next is highly significant. This is the first successful group action against a major retailer in the private sector, following on the heels of the mammoth Birmingham City Council case which has seen £1.1bn paid out to date.

“The decision has major implications for other ongoing actions against Asda, Tesco, Morrisons, Sainsbury's and the Co-op. Those employers have made similar arguments to Next, including that differences in pay were justified by market forces. That argument has now been rejected.

“The cases all turn on one central idea: that customer-facing jobs, traditionally seen as ‘women’s work’, have been historically undervalued compared against jobs perceived as more physically demanding. 

“The courts have now accepted, in Next’s case at least, that those jobs have equal value despite requiring different skills, and as such should be paid equally.”

Matthew Todd sheds further light on the impact this landmark Employment Law ruling could have on employers and employees, suggesting that, “This decision is likely to prompt many employers to reconsider the value of different roles and may also encourage female workers to consider whether they are being equally valued in comparison to male colleagues.”

He added, “Employers would be well advised to review their pay arrangements for possible ‘equal value’ issues now, especially as this success may be followed up by similar results in other group actions."

The 3,540 former and current Retail Workers’ six-year-long legal battle for equal pay might not be over just yet, however, as Next plans to appeal against the ruling.

If you have an equal pay dispute you need advocacy or advice on, call our Employment Clerks Daniella Howarth and Alessandro Saporita-Clark on 0161 832 4036, or email [email protected] and [email protected]