UK clothing retailer Next has said it won an appeal at the Employment Appeal Tribunal (EAT) over basic pay, in its long-running equal pay litigation.

At issue was whether the retailer was obliged to pay identical basic pay to retail and warehouse staff, notwithstanding differing market conditions across the two roles.

The EAT supported Next's argument that offering warehouse operatives a higher market rate than shop assistants was justified, pointing to recruitment and retention challenges particular to warehouse positions that store employees did not face.

Next stated that direct sex discrimination was not established by either the original Employment Tribunal or the EAT.

The Employment Tribunal had previously determined that “gender did not enter into the equation” in Next's pay-setting process, adding that there was an “abundance of evidence which supported the conclusion that sex had nothing to do with Next's decision on pay rates”.

According to the retailer, expert evidence submitted by claimants linking the pay disparities to sex was also dismissed by the tribunal.

The EAT affirmed these conclusions and rejected the claimants' cross-appeal relating to discrimination.

Next was directed in August 2024 to pay millions of pounds to thousands of its sales consultants.

The retailer said it has now prevailed on most contested terms in the litigation.

This includes bonus pay for warehouse employees, which the original Employment Tribunal ruled in Next's favour last year, along with basic pay following the latest appeal decision.

A handful of other terms, among them paid rest breaks, were not overturned at appeal stage; Next said it plans to pursue permission to appeal on those points.

In its statement, the company said: “This judgment has come at the right time, the UK economy desperately needs jobs, and the loss of this appeal would have represented a hammer blow to retail employment in the UK.”