More than 3,500 current and former employees of fashion retailer Next have emerged victorious in a historic equal pay battle, marking the first successful claim of its kind against a major national retailer.
After a six-year legal struggle, the Employment Tribunal ruled that the company had failed to justify paying its predominantly female sales consultants lower hourly wages than their male-dominated warehouse counterparts. This ruling could see Next facing compensation costs exceeding £30 million.
The tribunal’s decision hinged on the failure of Next to provide a legitimate, non-discriminatory reason for the pay disparity. Sales consultants, who typically earn between £0.40 to £3 less per hour than warehouse operatives, are now entitled to back pay for up to six years, reflecting their loss of earnings, which averages more than £6,000 per claimant.
Additionally, the ruling mandates that Next must equalise pay rates in existing contracts and extend other benefits, including paid rest breaks and equal Sunday, night, and overtime premiums, to the affected sales staff.
This victory is expected to bolster similar equal pay claims, particularly those involving over 100,000 supermarket workers represented by Leigh Day, the law firm that successfully argued the case against Next. The firm’s lawyers believe that this ruling sends a strong message to employers across the retail sector that relying solely on market rates is insufficient to justify gender pay disparities.
Elizabeth George, a partner at Leigh Day who represented the claimants, hailed the decision as a significant achievement in the fight against pay discrimination, noting that Next’s financial reasoning for the pay gap was deemed unacceptable by the tribunal.
As a result of this judgment, Next could face a surge in similar claims, as Leigh Day continues to submit cases on behalf of other sales consultants. This outcome underscores the importance of equal pay legislation and sets a crucial precedent for the retail industry.