The Employment Appeal Tribunal ruled on Sunday in favour of Next PLC (LSE: NXT), overturning an earlier finding that the retailer must pay identical basic rates to its retail and warehouse employees. The tribunal concluded that Next was justified in relying on market forces, allowing different basic pay levels based on the distinct recruitment and retention pressures facing warehouse operatives.
Next argued that warehouse staff operate in a tighter labour market, requiring higher pay to attract and retain workers, a position the appeal tribunal affirmed as legally sound. The tribunal also noted that gender did not influence the retailer's pay structure, echoing the Employment Tribunal’s earlier observation that "gender did not enter into the equation."
The decision follows a previous Employment Tribunal ruling last year that granted Next a victory on bonus pay for warehouse staff, meaning the retailer has now prevailed on the majority of issues raised in the equal‑pay litigation. Both tribunals found no direct sex discrimination in Next’s pay practices and dismissed the claimants’ cross‑appeal on that ground.
Next indicated it will seek permission to appeal the remaining contested terms, including the provision of paid rest breaks, arguing that the same legal principles apply. The outcome removes a significant legal uncertainty for the retailer and its shareholders, while the unresolved issues remain subject to further judicial review.
