Tesco has lost a UK Supreme Court battle with the retail workers union over ‘fire and rehire’ plans.
The supermarket giant faced legal action by the Union of Shop, Distributive and Allied Workers (Usdaw) after it tried to sack distribution centre staff and rehire them on lower pay in 2021.
After the High Court ruled in the union’s favour in 2022, the supermarket giant successfully appealed against the decision the same year.
But the Supreme Court yesterday ruled Tesco should be blocked from dismissing the staff. It comes as Labour plots workers’ rights reforms that will ban fire and rehire policies and zero-hour contracts.
It is feared the new rules facing business – alongside the prospect of higher taxes – will put companies off hiring staff.
The row broke out after Tesco planned to close some distribution centres in 2007, offering staff a higher salary – which was known as ‘retained pay’ – for them to relocate.
In 2021, the grocer tried to end ‘retained pay’ and …