The Employment Appeal Tribunal ruled that Next was justified in paying warehouse workers higher basic rates than shop floor staff due to recruitment and retention pressures.

Next has successfully appealed a 2024 ruling that previously found the retailer liable for unequal pay between its warehouse and shop floor staff. The Employment Appeal Tribunal determined that the company was justified in paying warehouse workers higher hourly rates to address recruitment and retention needs. The decision overturns a ruling that would have entitled more than 3,500 current and former employees to a share of over £30 million in back pay.

Tribunal Findings on Pay Justification

The tribunal accepted Next's argument that it relied on market forces to distinguish pay between different employee groups. Next stated that higher rates for warehouse operatives were necessary to recruit staff, a pressure that did not apply to its store workforce. The company described the ruling as a victory for common sense, affirming that employers should be able to pay market rates to secure necessary labor without being obligated to raise pay for other groups.

Ongoing Legal Disputes

While the tribunal ruled in favor of Next regarding basic pay, it upheld 2024 findings concerning night-time premiums, overtime premiums, and paid rest breaks. Next has indicated it will seek permission to appeal these remaining points. Meanwhile, the law firm Leigh Day, which represents the store workers, expressed disappointment and plans to appeal the decision regarding basic pay. Both tribunals involved in the case found no evidence of direct sex discrimination in Next's pay structure.