Fashion retailer Next has successfully appealed a court ruling that mandated equal pay for its shop staff and warehouse workers, a decision the company hailed as "a victory for common sense."
The Employment Appeal Tribunal ruled that Next can continue to pay warehouse staff higher hourly wages than its retail sales employees. This decision overturns a 2024 ruling which had found that the company could not prove the lower pay for sales consultants, who are predominantly female, was unrelated to sex discrimination.
In its appeal, Next argued that higher pay rates in the broader market for warehouse roles justified the wage disparity. The tribunal accepted this reasoning, stating it costs more to recruit and retain warehouse workers. Next maintained that recruitment and retention pressures specific to warehouse roles did not apply to its in-store workforce.
The eight-year legal battle has been closely watched by other major retailers, including grocers like Asda, Sainsbury’s, and Tesco, which are facing similar equal pay claims. Next operates approximately 458 shops in the UK and Ireland, employing over 20,000 staff.
Next stated that if the appeal had failed, it could have threatened the viability of many of its stores. The company also warned that an alternative outcome might have unfairly penalized retailers who manage their own warehouses compared to those who outsource the function. A company spokesman emphasized that the ruling arrived at a critical time for the UK economy, which needs jobs, and that losing the appeal would have been a significant blow to retail employment.
Elizabeth George, a partner at Leigh Day representing the shop workers, expressed disappointment with the ruling. She noted that the market rate is higher in the predominantly male warehouse labor market, despite the work performed in stores having been previously deemed equal.
The ruling specified that there was no finding of direct sex discrimination by the tribunal. Next has been led by Lord Wolfson since August 2001.