Thousands of Tesco workers have won a landmark decision against the supermarket giant in an equal pay case being heard by the European Court of Justice.
Thousands of shop floor staff, most of whom are women, have accused Britain's biggest grocer of paying them up to £3 per hour less than the mostly male warehouse workers, when their work is of equal value.
The decision could trigger more than £2.5bn in back pay claims for as many as 25,000 female employees, who may be owed compensation after being underpaid for at least seven years.
The 6,000 current and former workers argued that Tesco should be seen as a single entity in terms of employment conditions, in line with EU law. Tesco claimed that the law was not applicable in the UK.
Now, Europe's top court has rejected Tesco's arguments and ruled that the law applies to private UK businesses as well, in a decision that could affect other retailers.
The decision was sent the European Court of Justice for clarification after being first heard at an employment tribunal in Watford, and is thought to be one of the last major decisions by the EU in relation to UK employment law before changes brought about by Brexit take hold.
"The principle, laid down by EU law, of equal pay for male and female workers can be relied upon directly, in respect both of 'equal work' and of 'work of equal value', in proceedings between individuals," CJEU judges said.
The decision will bind the UK government and apply to any future equal pay case despite Britain leaving the European Union, Leigh Day has previously said.
"The jobs in our stores and distribution centres are different. These roles require different skills and demands which lead to variations in pay - but this has absolutely nothing to do with gender," a spokesperson for Tesco said following the decision. "We continue to strongly defend these claims."
In March, more than 44,000 Asda workers won a similar equal pay claim with bosses through a Supreme Court ruling, paving the way for a legal battle that could last years.
The UK's highest court backed a Court of Appeal judgment that store staff are entitled to compare themselves to distribution staff for equal pay purposes.
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2021-06-03 09:04:00Z
CBMiXGh0dHBzOi8vbmV3cy5za3kuY29tL3N0b3J5L3RvcC1ldXJvcGVhbi1jb3VydC1ydWxlcy1hZ2FpbnN0LXRlc2NvLWluLWVxdWFsLXBheS1jYXNlLTEyMzIzNzM30gFgaHR0cHM6Ly9uZXdzLnNreS5jb20vc3RvcnkvYW1wL3RvcC1ldXJvcGVhbi1jb3VydC1ydWxlcy1hZ2FpbnN0LXRlc2NvLWluLWVxdWFsLXBheS1jYXNlLTEyMzIzNzM3
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