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Next wins appeal over £30m equal pay ruling for warehouse staff

Next has won an appeal allowing it to continue paying warehouse workers a higher hourly rate than shop floor staff, overturning a 2024 ruling that could have led to over £30m in back pay.

  • The Employment Appeal Tribunal ruled that Next was justified in paying higher rates to warehouse staff due to recruitment and retention pressures.
  • The decision overturns a 2024 ruling that found Next was wrong to pay warehouse staff more for jobs of equal value.
  • Leigh Day, representing store workers, plans to appeal the decision on basic pay.

Next has successfully appealed a key part of a 2024 equal pay ruling, allowing the retailer to maintain higher hourly rates for its warehouse workers compared to shop floor staff. The Employment Appeal Tribunal accepted Next's argument that it was justified in paying more due to recruitment and retention challenges for warehouse roles.

The original ruling in 2024 had determined that Next was incorrect to pay warehouse staff higher basic pay for jobs deemed of equal value to those on the shop floor. This earlier judgement had potentially entitled over 3,500 current and former employees, predominantly women, to share more than £30m in back pay.

Leigh Day, the law firm representing the store workers, expressed disappointment with the tribunal's conclusion on basic pay and stated its intention to appeal the decision. Next described the outcome as a "landmark victory" on the "key issue of basic pay," affirming the principle that employers can pay what is necessary to recruit staff without being obliged to raise the pay of other employees where there is no reason to do so.

While Next's appeal on basic pay was successful, Leigh Day noted that judges did uphold 2024 findings concerning night-time premiums, overtime premiums, and paid rest breaks. Next has indicated it will seek permission to appeal these specific decisions.

Why this matters: The decision could set a precedent for other retailers, as Tesco, Asda, Morrisons, and Sainsbury's are involved in similar long-running equal pay claims and are expected to review the findings closely.

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