Initial success in the Tribunal for Next shop workers claiming equal pay with warehouse staff
Over 3,500 Next shop workers have recently won an Employment Tribunal arguing that their work was of equal value to warehouse staff, and that they should have received the same rate of pay. Next have said that they will appeal. While the Tribunal accepted that the difference in pay rates between the jobs was not due to direct discrimination, it found that the business need was not sufficiently great as to overcome the discriminatory effect of lower basic pay. Lawyers for the workers have said that the amount of back-pay owed could be more than £30M.
There are currently similar multi-claims waiting in the Tribunal against Asda, Tesco, Morrisons, Sainsbury’s and the Co-op, and so the implications could be wide ranging. This judgment may also prompt further cases in the private sector, where employees claim that their work is of equal value to other roles at their employer, which are traditionally more male roles and better paid.
This is a first instance decision of the Employment Tribunal, and Next have said that they will appeal. Therefore, we will watch this space for what happens next.
In the meantime, if you have concerns about equal pay in your workforce, and would like advice on how to mitigate against the risks of equal pay claims, please get in touch with one of the team.