Bryan HayThe Supreme Court is poised to review a pivotal case brought by the retail trade union Usdaw and Thompsons Solicitors against the supermarket giant Tesco concerning their controversial ‘fire and rehire’ practices. The proceedings, slated for 23-24 April 2024, mark the culmination of a protracted legal struggle. This follows the suspension of a related case in Scotland pending the resolution of the English case.
The contention centres on Tesco’s strategy to terminate employees at its Daventry and Litchfield Distribution Centres, subsequently offering to re-engage them under diminished terms, primarily aiming to eliminate “retained pay.” Despite initially upholding the permanence of “retained pay” in the High Court, the Court of Appeal overturned this decision, casting doubts on the meanings of “permanent” and “guaranteed for life.”
The appellate court’s verdict permitted Tesco to proceed with the dismissals, lifting a previous injunction, which has sparked significant concern and critique from Usdaw. The union has resolved to take this fight to the Supreme Court, contending against what it perceives as unethical employment practices by Tesco.
Neil Todd, partner at Thompsons Solicitors, elaborated on the commitment made to employees, asserting, “We contend that ‘permanent’ means just that, and it was not open to Tesco to renege from that commitment and utilise fire and re-hire tactics solely to remove that right once it had served its purpose.”
Mark Todd, Usdaw national officer, expressed his dismay at Tesco’s tactics, stating, “It has always been clear to us what we agreed with Tesco in respect of our members in receipt of ‘retained pay’. That is that they would have a right to this payment for as long as they remained employed by Tesco in their current role. The agreement was reached at a time when the company needed these individuals to remain in post as it could not have been operationally effective if they had chosen to leave.”
