What Asda equal pay ruling means for thousands more supermarket staff in the UK (2024)

Shop workers at the grocer, which pays distribution centre staff up to £3 an hour more than shop floor staff, argue they should be paid equal amounts to their colleagues in warehouses

Tens of thousands of Asda shop floor workers are one step closer to equal pay after the Supreme Court today ruled in their favour.

Shop workers at the grocer, which pays distribution centre staff up to £3 an hour more than shop floor staff, argue they should be paid equal amounts to their colleagues in warehouses around the country.

Asda has long disputed this - but today, the grocer lost its third appeal arguing that roles in the two departments are not comparable.

Supreme Court justices said that the ruling now paves the way for thousands of workers to get equal rights.

How many people are affected?

The claim involves more than 40,000 Asda store workers, about two-thirds of whom are women.

The employees say they want equal pay to distribution centre staff - the majority of whom are men - with the claims going back six years.

Employee Wendy Arundale, who worked for Asda for 32 years, is one of thousands of staff members raising a case against gender discrimination.

"I loved my job, but knowing that male colleagues working in distribution centres were being paid more left a bitter taste in my mouth," Ms Arundale said.

"It's not much to ask to be paid an equal wage for work of equal value, and I'm glad the Supreme Court reached the same conclusion as all the other courts."

Asda continues to deny that the roles are equal.

An Asda spokesperson said: "Retail and distribution are very different sectors with their own distinct skill sets and pay rates. Asda has always paid colleagues the market rate in these sectors and we remain confident in our case."

What is the difference in pay?

Shop floor workers, who are represented by law firm Leigh Day, have made sex-discrimination claims against the grocer.

Lawyers representing store workers say distribution depot workers get between £1.50 and £3.00 an hour more.

On Friday, Supreme Court justices unanimously decided that, at a time when Parliament is determined to make equal pay law effective, now is not the time to take its "foot off the pedal".

In her judgment, Lady Arden said the case was "important because otherwise an employer could avoid equal pay claims by allocating certain groups of employees to separate sites so that they can have different terms even where this is discriminatory".

What does this mean for current and former Aemployees?

Leigh Day said anyone who has been paid by the hour and worked in a store in England or Scotland could be entitled to join the claim - which could amount in thousands of pounds worth of back pay.

Partner Lauren Lougheed, said: "We are delighted that our clients have cleared such a big hurdle in their fight for equal pay.

"Already an employment tribunal, the Employment Appeal Tribunal and the Court of Appeal ruled that these roles can be compared, and now the Supreme Court has come to the same conclusion.

"It's our hope that Asda will now stop dragging its heels and pay their staff what they are worth."

What's next in the battle for equal pay?

The latest Supreme Court hearing was Asda's final chance to argue the roles are not comparable.

It's now lost the case which means workers can move forward with their claims for backdated pay.

The next stage will now involve an employment tribunal deciding whether specific store and distribution jobs are of “equal value”.

If judges decide that different jobs are of "equal value", the litigation would then enter a third stage.

Lawyers say an employment tribunal will then consider whether there are reasons – other than gender – why people working in stores should not get the same pay rates as people working in distribution centres.

How much money could staff get?

Susan Harris, GMB legal director, today said staff could get several years' back pay.

She said: "We now call on ASDA to sit down with us to reach agreement on the back pay owed to our members – which could run to hundreds of millions of pounds."

The union said the compensation claim could run to £500million.

Jennifer Smith, employment law partner at JMW Solicitors, said: “Asda could be exposed to claims for up to six years’ back pay per employee - as could other retailers if claims are brought by their own staff."

What does it mean for other supermarket shop floor workers?

Tesco, Sainsbury's, the Co-op and Morrisons employees have also launched equal pay claims in recent years over allegations that shop floor staff are underpaid compared to their warehouse colleagues.

Smith estimates the cost to the retail sector could top £8billion.

Neha Thethi, head of employment at Lime Solicitors said today's outcome could open the floodgates for more claims.

"The importance of today’s Supreme Court judgment cannot be underestimated - it is the largest equal pay claim in the private sector, and has the potential to open the floodgates to further claims, not just across other supermarkets but other prominent retailers.

"The Claimants will inevitably treat this as a positive sign and we can reasonably expect to see the number of Claimants growing and other claims commencing. Asda could be facing a multi-million pound pay-out. The Supreme Court’s decision will inevitably affect the structure and approach of other potential Claimants.

"Over forty years ago the Equal Pay Act came into force and we’re still seeing an uneven playing field for working men and women and fighting pay discrepancies. Arguably this legal test is long overdue."