A judge ruled Next can pay warehouse workers more because it is harder to recruit and retain them.
The Employment Appeal Tribunal has overturned a key part of a landmark ruling in 2024 which found the retailer was wrong to pay its warehouse staff higher basic pay than shop floor workers for jobs of equal value.
More than 3,500 current and former employees, mainly women, had been set to share potentially more than £30m in back pay as a result of that judgement.
After Next's appeal, the law firm Leigh Day, which represents store workers, described the conclusion on basic pay as "disappointing" and said it will appeal the decision.
The tribunal accepted that Next was justified in paying higher rates because of recruitment and retention pressures for warehouse workers.
Next described the decision as a "landmark victory" succeeding on the "key issue of basic pay".
In a statement, it said: "The importance of this decision is that the Appeal Tribunal has confirmed that it was justifiable for Next to rely on market forces to distinguish between different groups of employees, where there was a good rationale to pay one group more than the other.
"In this case, Next had to pay a higher market rate to warehouse operatives because of recruitment and retention pressures, which did not apply to the workforce in its stores. Next believes this element of the judgment is not only correct in law, but also a victory for common sense.
"The judgment affirms a principle at the heart of any effective employment market - that employers must be able to pay what is necessary to recruit the people they need; and that doing so does not oblige them to raise the pay of other employees where there is no reason to do so."
Leigh Day said judges did uphold 2024 findings on night-time premiums, overtime premiums and paid rest breaks.
Next said it will now seek permission to appeal these decisions.
Both the original Employment Tribunal and the Appeal Tribunal found there was no direct sex discrimination in Next's pay rates. Shop floor staff are predominantly women while warehouse workers are predominantly male.
Questions are now being asked about if this result could set a precedent across the industry. Tesco, Asda, Morrisons, and Sainbury's are all involved in similar long running claims and will be studying the findings closely.
Last year, thousands of female workers at Birmingham City Council heard how much money they will receive in a long-awaited equal pay settlement. Brighton and Hove City Council is also facing over 1,000 equal pay cases.
The video playlist Watch our pick of standout clips from across the BBC
0:52 How Portsmouth residents feel about small boats protest. 00:00:52, play video How Portsmouth residents feel about small boats protest 2:01 Drug rape killer 'should never have been freed' says victim. 00:02:01, play video Drug rape killer 'should never have been freed' says victim 1:00 British racing driver 'owes his life' to rival who rescued him from car fire. 00:01:00, play video British racing driver 'owes his life' to rival who rescued him from car fire 1:21 Chemo hair loss doesn't define me. 00:01:21, play video Chemo hair loss doesn't define me 0:15 Video shows damaged Amazon cargo plane after crash kills five 00:00:15, play video Video shows damaged Amazon cargo plane after crash kills five 1:46 US envoys in Kyiv a 'symbolic moment' 00:01:46, play video US envoys in Kyiv a 'symbolic moment' 1:20 A simple way to parent like a pro (and stay calm!) 00:01:20, play video A simple way to parent like a pro (and stay calm!) 1:02 How hygienic is your kitchen sponge? 00:01:02, play video How hygienic is your kitchen sponge? 0:45 Alex George on how messy the Love Island villa was. 00:00:45, play video Alex George on how messy the Love Island villa was 1:03 'Putin believes any peace should be on Russia's terms' 00:01:03, play video 'Putin believes any peace should be on Russia's terms' 0:36 Why on average it rains more in August than September. 00:00:36, play video Why on average it rains more in August than September 1:25 The 24 rabbits that brought chaos to a continent. 00:01:25, play video The 24 rabbits that brought chaos to a continent 1:14 Charlotte Church's love of the Reverie Harp. 00:01:14, play video Charlotte Church's love of the Reverie Harp 1:46 'I measured myself through the aunties' 00:01:46, play video 'I measured myself through the aunties' 0:38 Farage's family want him to 'pack it in and walk away' 00:00:38, play video Farage's family want him to 'pack it in and walk away' 1:01 Dover protesters cause morning of 'absolute chaos' 00:01:01, play video Dover protesters cause morning of 'absolute chaos' 0:56 The struggle to shut down the illegal tobacco trade. 00:00:56, play video The struggle to shut down the illegal tobacco trade 0:43 Max Fosh causing chaos in the kitchen. 00:00:43, play video Max Fosh causing chaos in the kitchen Top stories Minister condemns disorder at Portsmouth anti-migrant protest after police officers hurt
Reporting synthesized and verified under Nexvoro.tech editorial guidelines. Full primary records referenced via BBC Business.
As Prime Minister enters his first parliamentary session, his administration faces a defining crisis over Palantir's sprawling £670m public sector contracts. Westminster insiders warn that deciding the fate of the US tech firm's NHS data agreements requires an immediate, high-stakes executive choice.
Major US television networks and print publications have suspended pooled coverage of President Donald Trump following the exclusion of CNN, Politico, and MS NOW. The affected media organisations have filed a federal lawsuit against the administration, while the White House defends its actions and launches an independent streaming initiative.
Once confident about expanding their Senate majority, Republican strategists are now scrambling to protect traditional strongholds as economic pressures mount across the Midwest. President Donald Trump's economic agenda faces intense scrutiny from voters, altering the trajectory of key legislative races.
