Next plans to appeal after losing a six-year legal case concerning equal pay disputes with thousands of its store workers.

The employment tribunal ruled that 3,540 current and former store workers, predominantly women, were unjustly paid less than their male counterparts working in its warehouses.

Legal representatives for the store employees hailed the decision as “hugely significant,” noting that the back pay owed could surpass £30 million.

Next, however, intends to contest the ruling, arguing that higher pay rates for warehouse workers are justified by broader market standards in the labor sector.

A statement from Next remarked: “This is the first equal pay group action in the private sector to reach tribunal ruling, raising numerous critical legal principles.”

The FTSE 100 company stressed that no direct discrimination claims were upheld, with the tribunal concluding there was no gender bias in how pay rates were determined.

During the period between 2012 and 2023, the tribunal found that 77.5% of the retailer’s store consultants were female, while 52.75% of warehouse workers were male.

Under equal pay law, roles of equal value within the same company should have equal compensation unless a non-discriminatory reason is presented for the wage disparity.

Next defended the pay difference, claiming it was essential for business viability and reflected the market rates for sales consultants versus warehouse operators.

The tribunal recognized that the pay discrepancy was not due to conscious or subconscious gender biases but was driven by cost-cutting efforts.

Nevertheless, the tribunal ruled that the business need did not justify the discriminatory impact of lower pay rates, and more compelling reasons are required for such wage differences.

Elizabeth George, a partner and barrister at Leigh Day representing the claimants, stated: “[The tribunal] correctly found that Next could have afforded higher wages but chose not to for financial reasons.”

She emphasized the ruling’s significance in addressing pay discrimination, affirming employers must adequately justify differing pay rates.

Next is a multinational retailer headquartered near Leicester, operating 458 shops across the UK.