An employment tribunal recently ruled that Next, the UK high street clothes chain, had discriminated unfairly against its store staff, who were mostly women, by paying them at lower rates than its mostly male warehouse workers. The ruling, closely watched by supermarket chains and other retailers facing similar legal challenges, could cost Next £30mn in back pay. Next argued that its pay levels reflected the market rate.
Little academic research has been carried out on the topic, although a 2021 LSE study suggested it has led to some increase in women’s pay relative to men’s. The UK government has signalled it will expand the principle to ethnicity pay gap reporting, despite questions about limited progress to date on the effects of gender pay gap requirements.
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