Next Equal Pay Claim: Landmark Win for Retail Workers in Six-Year Battle

Thousands of retail workers have succeeded in their Next equal pay claim after a tribunal ruled that simply basing wages on “market rates” wasn’t a sufficient business reason to justify the gender pay gap. Join us as we delve into the case facts, the employment tribunal’s judgment, and how this ruling will impact businesses. We will explore an individual’s possible steps if they’ve experienced unequal pay and discuss how we can help.

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Retail Workers Win Landmark Next Equal Pay Claim Over Gender Pay Gap

Since 2018, more than 3,500 claims have been brought against the fashion retailer Next concerning a gender wage gap. Retail workers, many of whom were women, asserted they’d been paid less than warehouse operatives, many of whom were men, despite undertaking work of equal value.

During proceedings, it was discovered that the sales consultants earned between £0.40 and £3 less per hour than their warehouse comparators. Over the six-year period the pay dispute concerned, this represented an average salary loss of £6,000 per worker. The female shop floor workers alleged that this amounted to sex discrimination under UK employment law.

In the retailer’s defence, Next argued that the pay variation reflected “market rates”. They claimed that the difference wasn’t influenced by gender but by factors like shift work and the requirement to work on public holidays.

However, the employment tribunal quickly dismissed this justification. They held that the fashion brand hadn’t been able to provide a sufficient business reason to justify the distinction. While they didn’t find the pay gap to be direct discrimination, since “there was no conscious or sub-conscious gender influence in the way Next set pay rates”, they found the decision had an indirectly discriminatory effect.

Consequently, the tribunal ruled in favour of the retail workers. Following the successful Next equal pay claim, the retailer must compensate workers for past salary losses and ensure equal pay moving forward.

Next Equal Pay Claim Sets New Standard

The Next equal pay claim will impact how the retailer manages employment in the future. However, this ruling also has significant ramifications for the retail and private sector industry as a whole.

This is because organisations with male-dominated and female-dominated roles will be required to ensure that their pay structures don’t lead to unequal pay for women. Furthermore, employers won’t be able to simply rely on “market rates” to justify any pay disparities. 

Instead, they will be required to assess whether a lawful factor can justify the wage gap. Going forward, this should help promote equal pay for women and a more equitable workplace.

Steps to Take if You Suspect Unequal Pay

Unfortunately, the Next equal pay claim is unlikely to be an isolated case. Other organisations may, consciously or subconsciously, continue implementing pay structures that result in unequal pay for women in their workforce.

If an individual suspects they aren’t being paid fairly under UK employment law, there are several steps they can take.

  1. First, they should look to understand how their pay compares to that of someone of the opposite sex who is completing equal work. They could ask their employer for details about pay rates and benefits, which may help them fully grasp the situation.
  2. Once they believe there’s evidence of a gender wage gap, they could raise an informal complaint. It’s generally advised to attempt informal dispute resolution first, as this could help settle the matter without going further.
  3. Should an informal discussion fail to resolve the problem, a formal grievance could be filed. This raises the seriousness of the complaint and obligates the employer to deal with it in a legally compliant way.
  4. If all else fails, the individual could claim to an employment tribunal. Before doing so, they must satisfy the eligibility criteria, adhere to specific time limits and undertake ACAS early conciliation. Like with the Next female shop floor workers, this could lead to the employer being required to pay compensation if the claim succeeds.

If you have any questions after reading about the Next equal pay claim or believe you’ve experienced something similar, please contact us. Redmans Solicitors are employment law specialists, and with our years of experience, we can discuss your case and advise on how you could proceed.

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