A stop to “Fire and Rehire” - Tesco Stores Ltd v USDAW [2024] UKSC 28
In September 2024, the Supreme Court delivered its judgment in Tesco Stores Ltd v Union of Shop, Distributive and Allied Workers and Others [2024] UKSC 28, a case concerning the controversial practice of "fire and rehire." The Supreme Court unanimously allowed USDAW’s appeal, holding that the employment contracts contained a term implied by fact with the effect that the employer’s right to terminate could not be exercised for the purpose of depriving the employees of their right to retained pay. It also restored the injunction granted by the High Court. Background to the Appeal The main issue of this appeal is whether Tesco can terminate its employees for the sole and specific purpose of depriving them of retained pay, a financial entitlement which was agreed to be permanent. In 2007, Tesco went through a restructure with its distribution centre. This involved closing some sites, opening news ones and expanding others. To incentivise staff to relocate, Tesco and its recogni...
