Several thousand former and current Next employees have won a landmark equal pay claim against the high street retailer after a six-year legal battle.
An employment tribunal, involving 3,540 claimants, has ruled that Next failed to demonstrate that the lower basic wage paid to sales consultants compared with warehouse operatives was not the result of sex discrimination.
Between 2012 and 2023, the period examined by the tribunal, 77.5 per cent of retail consultants at the fashion and homeware retailer were female, and 52.75 per cent of warehouse operators were male, according to the ruling.
Under equal pay law, work of equal value at the same company must be paid equally unless an employer can demonstrate that the difference in wage is because of a “material factor” that is not sex discrimination.
During the tribunal, Next argued that the difference in the wages for the two roles was because the “market rate” for a sales consultant versus a warehouse operator was different and to ensure the “viability” of the business.
The tribunal accepted the discrepancy in pay between the roles was not because of “direct discrimination”, and instead driven by efforts to “reduce cost and enhance profit”.
It ruled that the “business need was not sufficiently great as to overcome the discriminatory effect of lower basic pay” and that “there must usually be a more compelling business reason for such arrangements to be justifiable”.
Next said it intends to appeal against the ruling. This is the first equal pay claim of its type against a national retailer to secure a win, said Leigh Day, the law firm representing the claimants.
