A look inside Asda’s equal pay loss at the Court of Appeal

Employees at supermarket chain Asda have won their latest equal pay claim at the Court of Appeal after judges ruled that employees’ roles in store were comparable to jobs in its distribution centres.

The claim, thought to be worth millions of pounds, involves thousands of current and former employees of the supermarket who claim that they have been discriminated against in being paid less than their male counterparts who predominantly work in the retailer’s warehouses and distribution centres.

In its ruling, the Court of Appeal found that in the vast majority of cases the law allows an employee to compare themselves to others in a similar position.

Donna Martin, a Partner at Mackrell Turner Garrett and Head of its Employment and Immigration department, said: “The Court of Appeals decision could have wide ramifications for a number of industries in the UK and tens of thousands of employees.

“While the equal pay rules were introduced in 1984, it has taken businesses three decades to catch up and with greater pressure than ever on employers to ensure they provide a fair working environment for all staff this should prompt others to stand up and listen.”

Donna who warned about a similar issue almost 12 months ago to the day, when news sprung that Tesco had also had a similar claim launched by its employees, said employers can no longer be complacent.

“In the case of Tesco, there are thought to be some 200,000 employees who may be eligible to bring a claim, many of whom will welcome this new decision. It is understood that other retailers are also likely to have claims made against them at a time when they are already struggling, so now is not the time for others to replicate these mistakes,” said Donna.

“Although they are yet to confirm whether they will launch an appeal, I am sure that Asda will challenge this again, despite already losing two important cases, as there is too much at stake if they lose.

“We must not forget that while action in both these cases has been taken by women it is also likely to affect thousands of male employees who find themselves in the same roles,” added Donna.

“The ladies of the Cammell Laird shipyard in Birkenhead whose actions brought about the Equal Pay Act must be wondering what has changed, it is about time that employers stand up and take action – they have far more to gain than lose.”