Over 3,500 Next workers win equal pay claim

More than 3,500 current and former Next employees have won a six-year legal fight for equal pay, with the total amount payable by the retailer estimated to be over £30m.According to Leigh Day, the firm that represented the workers, this marks the first equal pay claim of this type against a UK retailer to reach the final legal stage and secure a win. 

It comes as an Employment Tribunal ruled that Next failed to show that paying their sales consultants, who are “overwhelmingly” women, lower hourly pay rates than their warehouse operatives was not sex discrimination.

Sales consultants currently receive lower basic hourly pay than warehouse operatives by £0.40 to £3, equalling an average salary loss of more than £6,000 each.

In 2023, the work done by the women in stores was ruled to be equal to the warehouse operative work in terms of demands, however. Under equal pay law, work of equal value must be paid equally unless an employer can show that the difference in pay is explained by a reason that is not sex discrimination.

The staff who brought the claim will now be entitled to compensation through back pay going back up to six years from when they put in their claims, and including the time that has since elapsed. The first claims were submitted in 2018.  

In addition, their basic hourly pay terms will automatically be equalised in their existing contracts. The win also includes providing store staff with paid rest breaks, and equal Sunday, Night and Overtime Premiums in line with comparable terms in the warehouse contracts. 

Compensation will now be assessed by the Tribunal, and only those who have brought claims will be entitled to lost pay and guaranteed to have their contracts equalised. However, Leigh Day will continue to submit claims for those who were not in the original 3,500, and the number of claims are expected to increase “significantly” following the ruling. 

Elizabeth George, Leigh Day partner and barrister representing the successful claimants, said: “When you have female dominated jobs being paid less than male dominated jobs and the work is equal, employers cannot pay women less simply by pointing to the market and saying – it is the going rate for the jobs. We knew that already. The Employment Tribunal has confirmed employers must go further to justify paying the different rates. 

“They rightly found that Next could have afforded to pay a higher rate but chose not to and that the reason for that was purely financial. Helen and thousands of her colleagues had the courage and perseverance to bring these claims and see them through to a successful end.  I am so pleased for them.”

However, Next has argued that the majority of claims lodged by the claimants were rejected by the Tribunal, in particular all claims of direct discrimination, and it now intends to appeal. 

In a statement to Retail Sector, Next said: “The Employment Tribunal has now handed down judgement in respect of the Equal Pay Claim brought by Next retail store workers seeking the same pay, terms and conditions as Next warehouse employees. 

“The Tribunal rejected the majority of the Claims made by the Claimants, in particular all Claims of Direct Discrimination, and all aspects of the Claims made in respect of Bonus Pay.  The Tribunal expressed serious criticisms of the Claimants’ expert evidence, and overwhelmingly accepted the evidence of Next’s expert and fact witnesses.” 

It added: “In respect of the specific terms in which the Claim succeeded, it is our intention to Appeal. This is the first equal pay group action in the private sector to reach a decision at Tribunal level and raises a number of important points of legal principle.”