Over 3,500 current and ex-employees of British retailer Next have emerged victorious in a six-year legal battle for equal pay, according to lawyers from Leigh Day, the firm representing the claimants, who announced this on Tuesday.
An Employment Tribunal has determined that Next did not demonstrate that the lower wages paid to its predominantly female sales consultants compared to its warehouse workers did not constitute sex discrimination, as stated by Leigh Day.
The affected workers are eligible for back pay covering up to six years prior to the initiation of their legal action and the period thereafter, with the total amount estimated to exceed £30 million ($39.6 million).
Leigh Day highlighted that this ruling serves as a significant boost for the 112,000 employees they represent in comparable cases against companies such as Asda, Tesco, Sainsbury's, Morrisons, and Co-op, although each case will be adjudicated based on its specific circumstances.
In 2023, a tribunal in Leeds, northern England, concluded that the work performed by women at Next stores was equivalent to that in the warehouse in terms of the demands placed upon them.
Helen Scarsbrook, one of the three primary claimants, expressed: "It's been a lengthy six-year struggle for the equal pay we believed we were entitled to, but today marks our victory."
Elizabeth George, a partner at Leigh Day, emphasized that this claim exemplifies the type of discrimination that equal pay legislation aims to combat. "When jobs predominantly held by women are paid less than those predominantly held by men, and the work is of equal value, employers cannot justify lower pay for women by citing market rates," she explained.
The tribunal concluded that Next could have afforded higher wages but opted not to, citing purely financial reasons. Next, however, stated that the tribunal dismissed most of the claims, including all allegations of direct discrimination and bonus pay, and they intend to appeal the specific terms in which the claim succeeded.
This marks the first equal pay group action in the private sector to reach a tribunal decision, raising several significant legal principles.
