More than 3,500 Former Employees Win Equal Pay Battle

LONDON (Reuters) – More than 3,500 current and former shop workers at British retailer Next have won a six-year legal fight for equal pay, as announced by the lawyers representing the claimants on Tuesday.

An Employment Tribunal ruled that Next failed to prove that paying its sales consultants, who are mostly women, lower pay than its warehouse workers was not a case of sex discrimination, according to Leigh Day, the law firm representing the workers.

Workers involved in the claim may receive back pay for up to six years prior to the action and for the time since, with total estimated compensation exceeding 30 million pounds (approximately $39.6 million).

Leigh Day described the ruling as a “huge encouragement” for 112,000 staff they are representing in similar cases at companies like Asda, Tesco, Sainsbury’s, Morrisons, and Co-op, while noting that each case will be judged individually.

A tribunal in Leeds, northern England, had concluded in 2023 that the work performed by women in Next stores was equivalent to that conducted in the warehouse in terms of job demands.

Helen Scarsbrook, one of the lead claimants, stated, “It has been a long six years battling for the equal pay we all felt we rightly deserved, but today we can say we won.”

Elizabeth George, a partner at Leigh Day, emphasized that the claim exemplified the discrimination that equal pay laws seek to combat. “When female-dominated jobs are paid less than male-dominated jobs and the work is equal, employers cannot simply point to market rates to justify paying women less,” she said.

The tribunal determined that Next had the financial capacity to offer higher wages but opted not to, citing financial reasons.

In response, Next indicated that the tribunal had dismissed most of the claims, including all allegations of direct discrimination and bonus payments. “In respect of the specific terms in which the Claim succeeded, it is our intention to appeal,” the company stated.

Next highlighted that this represents the first equal pay group action in the private sector to reach a tribunal decision, raising significant legal principles.