UK Equal Pay: A Significant EAT Decision

Why should I read this?

The Employment Appeal Tribunal's decision in Thandi and Others v NEXT Retail Ltd is a significant development in the law of equal pay.

NEXT's successful appeal on the key issue of basic pay overturns the Employment Tribunal's finding that the retailer breached equal pay requirements by paying its shop-floor sales staff a lower rate of basic pay than its warehouse operatives carrying out roles assessed as being work of equal value. The EAT found that it was justifiable for NEXT to rely on market forces to distinguish between the pay for the different groups of employees where there was a valid rationale for the pay differences.

Equal pay remains a cornerstone of workplace equality, helping to ensure that individuals receive fair remuneration for equal work regardless of sex. The material factor defence plays an important role in balancing that principle with the reality that pay differences may arise for legitimate, non-discriminatory reasons. It enables