Next wins appeal on warehouse vs shop pay

A UK retailer has won a significant appeal in an eight-year equal pay dispute, allowing it to continue paying warehouse staff higher hourly rates than its shop floor employees. The Employment Appeal Tribunal ruled on Sunday, September 6, 2026, that fashion giant Next had justifiable business reasons for the pay disparity. The decision overturns a key part of a landmark ruling from 2024, which had found that Next was unable to prove the lower basic wage paid to its retail sales staff, who are predominantly female, was unrelated to sex discrimination. That earlier judgment had suggested that over 3,500 current and former employees could be entitled to more than £30 million in back pay. In its appeal, Next argued that it needed to pay higher market rates for warehouse operatives due to recruitment and retention pressures that did not apply to its store workforce. The tribunal accepted this justification, finding that Next paid the rates necessary for sound business reasons to secure staff for its warehouses, where the gender split is more even, compared to its stores, where women make up a significant majority of the workforce.