Next retains right to pay warehouse workers more than store staff after Employment Appeal Tribunal overturns equal pay ruling
The UK's largest high-street retailer Next won a legal battle, securing higher base pay for its warehouse workforce compared to shop floor employees. The court ruled that market pressures regarding recruitment and retention justified the pay disparity.
The Employment Appeal Tribunal upheld Next's right to pay warehouse operatives a higher basic hourly rate than its retail workers following a long-running dispute. A previous 2024 ruling had found the company wrong, likely awarding over £30 million in back pay to more than 3,500 employees. However, the tribunal determined that hiring and retention pressures specific to warehouse work provided valid justification for the differential rates. Next represented this decision as a victory on the core issue of basic pay. Leigh Day, the law firm representing store staff, characterized the outcome regarding base pay as disappointing and confirmed plans to further appeal the ruling. The court specifically noted that the market forces applied to warehouse roles did not exist within the store workforce. Next stated that relying on these economic factors to distinguish between employee groups was legally correct and sensible.
