Next wins appeal over warehouse pay gap ruling

The Employment Appeal Tribunal has overturned a previous ruling regarding the clothing retailer Next, allowing the company to continue paying warehouse staff higher hourly rates than shop-floor employees. The decision reverses a 2024 employment tribunal ruling that had found the pay gap constituted sex discrimination against the predominantly female retail staff.

In his judgment, Mr Justice Bourne stated that the higher pay for warehouse workers was justified by recruitment and retention needs driven by market forces. He noted that while retail workers are approximately 77.5% female, warehouse staff are more evenly split, and the higher rates were a response to specific labor market pressures rather than a distinction based on gendered work.

The reversal significantly impacts a legal battle involving over 3,500 current and former employees represented by the law firm Leigh Day, who were previously facing estimated compensation of more than £30 million. While the tribunal upheld findings regarding night-time premiums and paid rest breaks, Next and Leigh Day have both indicated intentions to appeal further issues to the Court of Appeal.