Demystifying £1.2bn Equal Pay (Part I)

Research evidence excerpt

Demystifying £1.2bn Equal Pay (Part I)

Case overview

Executive summary

Asda is currently defending one of the largest private sector Equal Pay claims in UK

history. The claim was brought by 60,000 current and former employees and could cost

Asda up to £1.2bn in back pay according to law firm Leigh Day, which represents the

employees. The core of the claim is a £1.04-£3.74/hour pay gap between Asda retail and

warehouse employees, despite works performed in store being of equal value as in

warehouse from the perspective of Asda employees.

The litigation, began in 2014, is progressing through a 3-Phrase Employment Tribunal

process. The tribunal already ruled in favour of claimants for Phase 1 (Comparability) and

Phase 2 (Equal Value). The case now hinges on Phase 3 (Material Factor Defence),

scheduled for 23-Nov-2026, where Asda and its counsel need to demonstrate the pay

gap was driven by legitimate & non-discriminatory factors. A potential loss of Phase 3

would establish legal liability on Asda, potentially triggering material penalty and

increase its ongoing labour costs. Notably UK retailer peer Next plc has already lost a

similar Equal Pay case brought by Leigh Day in 2024, and is currently appealing the

Phase 3 ruling.

We are not acting in the capacity of a legal adviser, and the information contained herein

is not intended to constitute legal advice. You should consult with your legal advisor as

to any issues of law relating to the subject matter of this report. The outcome of any

legal case, including any potential settlement or injunction, is inherently unpredictable

and any discussion of such matters in this report should be read with that

understanding.

Parties involved

• Asda: the respondent / defendant

• 60,000 current & former Asda employees: claimants