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February 3, 2025
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Asda Loses Key UK Ruling in £1.2bn Equal Pay Case

UK supermarket giant Asda has lost a crucial ruling in its £1.2 billion equal pay dispute, as a court found that jobs done by female store workers were of equal value to those performed by their male colleagues in warehouses. The ruling affects tens of thousands of claimants and moves the case closer to a final decision. Asda insists its pay structure is fair and plans to continue its legal defense in upcoming hearings.
Asda Loses Key UK Ruling in £1.2bn Equal Pay Case

In a major setback for Asda, a UK court ruled that jobs performed by female store workers can be considered equal in value to those of male depot workers, reinforcing the largest-ever private sector equal pay claim in British history. The decision affects tens of thousands of Asda employees who have been fighting for over a decade to secure pay parity.

The employment tribunal rejected Asda’s attempt to dismiss claims from 12 out of 14 lead claimants, clearing the way for the next phase of the legal battle. The ruling means Asda must justify the pay gap between store and warehouse employees or face a potential payout of up to £1.2 billion.

The case, which dates back to the period between 2008 and 2014, argues that Asda’s predominantly female shop floor workers should be paid the same as its largely male depot staff, given that their roles have equal value under UK equal pay laws.

Asda has strongly denied allegations of pay discrimination, arguing that retail and distribution are separate industrieswith different pay structures. In a statement, the company reiterated its stance, saying, “We strongly reject any claim that Asda’s pay rates are discriminatory.”

The supermarket chain intends to continue defending its position in upcoming hearings. The case could also set a precedent for similar lawsuits against Tesco, Sainsbury’s, Morrison’s, and Co-op, which collectively face equal pay claims exceeding £8 billion.

The ruling also has potential financial implications for Walmart, which retains a 10% stake in Asda. The US retailer had indemnified the Issa brothers and private equity firm TDR Capital, who bought Asda in 2020, for a portion of any financial damages related to the case.

Unions and legal representatives hailed the ruling as a victory for Asda’s predominantly female workforce, many of whom have been fighting for pay equality for more than a decade.

Nadine Houghton, National Officer at GMB, one of the unions supporting the claim, stated, “These women have been fighting for what they are owed for more than ten years and are close to ending the era of retailers systematically undervaluing women.”

With one more stage of the litigation remaining, the final court ruling on compensation will determine whether Asda must make one of the largest equal pay settlements in UK history. Both Asda and the claimants still have the option to appeal to a higher court, meaning the legal battle could continue.

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