Tesco Loses Supreme Court Battle Over 'Fire and Rehire' Practices

The UK’s highest court ruled unanimously against Tesco's attempt to rehire workers on lower pay, marking a significant win for the union Usdaw.

The Union of Shop Distributive and Allied Workers (Usdaw) challenged Tesco's 2021 plan to terminate and rehire staff at lower pay.
The Supreme Court's unanimous decision blocks Tesco from dismissing employees to end their 'retained pay' agreements.
The case involved 367 union members, primarily from distribution centers in Livingston, Daventry, and Lichfield.
Tesco argued the use of a 'contractual mechanism' to end retained pay, while Usdaw maintained it was a permanent benefit.
The ruling aligns with government efforts to ban exploitative employment practices like 'fire and rehire'.