British fashion giant Next has been ordered to pay millions of pounds to thousands of its sales consultants after a six-year legal battle.
The landmark ruling could have far-reaching implications for other retailers facing similar claims.
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The Employment Tribunal found that Next’s practice of paying sales consultants, who are predominantly women, lower hourly rates than warehouse operatives, constituted sex discrimination.
The retailer failed to provide a convincing justification for the pay gap, arguing that market forces were the primary driver. The tribunal rejected Next’s defence, stating that simply citing market rates was insufficient to justify unequal pay.
The ruling sets a precedent that employers must provide a more substantial reason for such disparities.
The victory for the Next workers is expected to embolden similar equal pay claims across the retail sector.
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By GlobalDataLeigh Day, the law firm representing the claimants, is already handling cases involving more than 100,000 store staff at major supermarkets Asda, Tesco, Sainsbury’s, Morrisons and Co-op.
The financial implications of the Next ruling are significant. The retailer faces potential compensation payments above £30m ($39.7m).
The company will also be required to equalise pay rates and benefits for its store staff.
Helen Scarsbrook, one of the lead claimants, expressed her relief and satisfaction with the outcome:
“We did it! We have achieved equal pay for Next sales consultants. It has been a long six years battling for the equal pay we all felt we rightly deserved but today we can say we won.
Elizabeth George, Leigh Day’s partner and barrister, praised the claimants for their perseverance and courage:
“The Employment Tribunal has confirmed employers must go further to justify paying the different rates. They rightly found that Next could have afforded to pay a higher rate but chose not to and that the reason for that was purely financial. Helen and thousands of her colleagues had the courage and perseverance to bring these claims and see them through to a successful end. I am so pleased for them.”
The Next case highlights the ongoing struggle for gender equality in the workplace.
As more retailers face similar legal challenges, the industry may be forced to re-evaluate its pay practices to ensure fairness and equity.
