Next Retail Limited & Anor v M Thandi and Ors

Facts

The claimants are 3,540 retail sales consultants employed in Next's shops. In 2018 they brought equal pay claims under the Equality Act 2010, complaining that they were paid less than comparators who worked as operatives in Next's Yorkshire warehouses. By an earlier decision dated 2 June 2023, the Leeds Employment Tribunal ruled that the work of three lead claimants was of equal value to that of four named comparators, a ruling binding on all parties. Next then relied on the material factor defence under section 69 of the Equality Act 2010, advancing six factors including market forces, recruitment and retention of warehouse labour, incentivising productivity and attendance, and overall business viability. After a fifteen-day hearing in May and July 2024 covering the period 2012 to 2023, the Tribunal (Employment Judge Jones, Mr Roberts and Ms Fleming) considered twenty distinct pay terms or categories. It held the defence failed on basic pay and six other terms, succeeded on nine, and found no relevant difference in terms on four. Next appealed on sixteen grounds directed at legitimate aim, particular disadvantage and proportionality; the claimants cross-appealed against the finding that there was no direct discrimination.