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EAT Overturns Next’s Equal‑Pay Basic Pay Ruling

The appeals court accepted Next’s market‑rate recruitment and retention defence and left a small number of issues, including paid rest breaks, open to further challenge.

Overview

  • The Employment Appeal Tribunal overturned the earlier tribunal’s finding that Next must set identical basic pay for shop and warehouse staff, accepting the company’s evidence on recruitment and retention as a business justification.
  • An August 2024 Employment Tribunal had ordered millions in payments to about 3,540 shop workers after a landmark equal‑pay finding, a ruling that the EAT has now reversed for basic pay.
  • Both the original tribunal and the EAT found there was no established direct sex discrimination in Next’s pay‑setting process, rejecting claimants’ expert evidence that linked the pay gap to gender.
  • A handful of other contested items, notably paid rest breaks, were not overturned by the EAT and Next says it will seek permission to appeal those remaining points.
  • Next framed the decision as a win for UK retail jobs while claimants retain live claims and may pursue further appeals and remedies over the unresolved terms.