In a ground breaking ruling, thousands of store staff at the retailer Next have triumphed in a six-year battle for equal pay. The Employment Tribunal’s decision, which found that Next had unjustifiably paid its predominantly female retail consultants less than their warehouse counterparts, marks a significant milestone in the fight for gender pay equality.
My comments on the “very significant” ruling were quoted in the Financial Times article as I highlight the wider consequences of the news on the retail industry as “retailers facing similar class actions will be paying very close attention,”. The news is also significant in the current context of the new Labour government’s upcoming employment rights bill which includes a commitment to extending equal pay protections to ethnic minority and disabled workers.
This ruling paves the way for over 3,500 current and former Next staff to receive back pay, potentially totalling more than £30 million. It also sets a precedent for automatic equalisation in existing contracts, ensuring fair pay for all.
Jo Keddie, head of employment at law firm Forsters, said Next might struggle to find grounds to appeal against a “very significant” judgment. Retailers facing similar class actions would be “paying very close attention”, she added, especially given the new Labour government’s pledge to extend equal pay protections to ethnic minority and disabled workers.
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