Personnel Today
  • Home
    • All PT content
  • Email sign-up
  • Topics
    • HR Practice
    • Employee relations
    • Learning & training
    • Pay & benefits
    • Wellbeing
    • Recruitment & retention
    • HR strategy
    • HR Tech
    • The HR profession
    • Global
    • All HR topics
  • Legal
    • Case law
    • Commentary
    • Flexible working
    • Legal timetable
    • Maternity & paternity
    • Shared parental leave
    • Redundancy
    • TUPE
    • Disciplinary and grievances
    • Employer’s guides
  • AWARDS
    • Personnel Today Awards
    • The RAD Awards
  • Jobs
    • Find a job
    • Jobs by email
    • Careers advice
    • Post a job
  • Brightmine
    • Learn more
    • Products
    • Free trial
    • Request a quote
  • Webinars
  • Advertise
  • OHW+

Personnel Today

Register
Log in
Personnel Today
  • Home
    • All PT content
  • Email sign-up
  • Topics
    • HR Practice
    • Employee relations
    • Learning & training
    • Pay & benefits
    • Wellbeing
    • Recruitment & retention
    • HR strategy
    • HR Tech
    • The HR profession
    • Global
    • All HR topics
  • Legal
    • Case law
    • Commentary
    • Flexible working
    • Legal timetable
    • Maternity & paternity
    • Shared parental leave
    • Redundancy
    • TUPE
    • Disciplinary and grievances
    • Employer’s guides
  • AWARDS
    • Personnel Today Awards
    • The RAD Awards
  • Jobs
    • Find a job
    • Jobs by email
    • Careers advice
    • Post a job
  • Brightmine
    • Learn more
    • Products
    • Free trial
    • Request a quote
  • Webinars
  • Advertise
  • OHW+

Fire and rehireEmployment lawLatest NewsEmployment contractsTrade unions

Tesco appeal against fire and rehire ban to be heard this week

by Ashleigh Webber 8 Jun 2022
by Ashleigh Webber 8 Jun 2022 Tony Baggett / Shutterstock.com
Tony Baggett / Shutterstock.com

Tesco’s appeal against the High Court’s decision to ban it from terminating employees’ contracts and re-engaging them on new terms will be heard at the Court of Appeal tomorrow (9 June).

In February Mrs Justice Ellenbogen ruled in favour of the shop workers’ union Usdaw, which brought a claim on behalf of 42 members who worked at Tesco distribution centres in Northampton and Staffordshire.

The changes proposed by Tesco included terminating  workers’ contracts and re-employing them on new ones which did not include retained pay. The retailer argued that it was using a “contractual mechanism” open to employers.

A permanent injunction against the move was put in place by the judge and an injunction against a similar move is in place in Scotland.

Usdaw national officer Joanne McGuinness said: “We are disappointed that Tesco has decided to appeal the victory we secured for our members and hope the Court of Appeal will also back the right to retained pay and reject enforced contractual changes through the use of fire and rehire.

“In this case, in around 2007 Tesco was beginning a vital distribution expansion programme and therefore to ensure that valued members of staff agreed to transfer location to new distribution sites, Tesco made assurances that those staff would retain the difference in their pay between their existing package and the new terms and conditions they would move to at those new sites.

Changing employment terms

‘Fire and rehire’: explore alternative options first says Acas 

Procedure on varying terms and conditions 

Podcast: Are your employment contracts fit for purpose? 

“Importantly they assured Usdaw that this would not be removed at a future date. Despite this, some 15 years later Tesco reneged on its promises and sought to buy out this retained pay and threatened its employees with dismissal if they did not sign up to a new contract without the retained pay element. Tesco refused to negotiate with Usdaw who were left with no option but to seek a legal solution so as to protect its members’ pay.”

Neil Todd, a lawyer at Thompsons Solicitors who is representing the claimants, said: “The High Court ruling in February was a well-reasoned and unequivocally clear judgment. The employer has made specific commitments to these workers about retained pay and the court found that it was unlawful for Tesco to renege on that commitment using fire and rehire tactics if the end result was to deprive those workers of the very payments it had guaranteed.

“There is no justification for the company to pursue cost-cutting measures to the detriment of its staff. We will continue to fight alongside the trade union movement against employers that think they can get away with these kinds of cynical employment tactics.”

Sign up to our weekly round-up of HR news and guidance

Receive the Personnel Today Direct e-newsletter every Wednesday

OptOut
This field is for validation purposes and should be left unchanged.

Tesco has been contacted for comment.

Employee relations opportunities on Personnel Today


Browse more Employee Relations jobs

Tesco
Ashleigh Webber

Ashleigh is a former editor of OHW+ and former HR and wellbeing editor at Personnel Today. Ashleigh's areas of interest include employee health and wellbeing, equality and inclusion and skills development. She has hosted many webinars for Personnel Today, on topics including employee retention, financial wellbeing and menopause support.

previous post
Sickness absence rate in 2021 was highest in more than a decade
next post
Authenticity at work: Is it really ‘all about me?’

You may also like

Seven ways to prepare now for the Employment...

20 Jun 2025

NHS pay disputes: Who could strike again?

20 Jun 2025

Poundland closures mean over 1,000 jobs at risk

18 Jun 2025

HR and employment leaders feature in King’s birthday...

16 Jun 2025

Former employees of Wilko gain £2m payout

13 Jun 2025

Workplace disputes: ‘Most employment tribunals could be avoided’

12 Jun 2025

Nurses vote on whether 3.6% pay rise is...

9 Jun 2025

House of Lords to resume scrutiny of Employment...

30 May 2025

Black workers face greatest risk from workplace surveillance

30 May 2025

Streeting appeals to resident doctors to vote against...

29 May 2025

  • Empowering working parents and productivity during the summer holidays SPONSORED | Businesses play a...Read more
  • AI is here. Your workforce should be ready. SPONSORED | From content creation...Read more

Personnel Today Jobs
 

Search Jobs

PERSONNEL TODAY

About us
Contact us
Browse all HR topics
Email newsletters
Content feeds
Cookies policy
Privacy policy
Terms and conditions

JOBS

Personnel Today Jobs
Post a job
Why advertise with us?

EVENTS & PRODUCTS

The Personnel Today Awards
The RAD Awards
Employee Benefits
Forum for Expatriate Management
OHW+
Whatmedia

ADVERTISING & PR

Advertising opportunities
Features list 2025

  • Facebook
  • Twitter
  • Instagram
  • Linkedin


© 2011 - 2025 DVV Media International Ltd

Personnel Today
  • Home
    • All PT content
  • Email sign-up
  • Topics
    • HR Practice
    • Employee relations
    • Learning & training
    • Pay & benefits
    • Wellbeing
    • Recruitment & retention
    • HR strategy
    • HR Tech
    • The HR profession
    • Global
    • All HR topics
  • Legal
    • Case law
    • Commentary
    • Flexible working
    • Legal timetable
    • Maternity & paternity
    • Shared parental leave
    • Redundancy
    • TUPE
    • Disciplinary and grievances
    • Employer’s guides
  • AWARDS
    • Personnel Today Awards
    • The RAD Awards
  • Jobs
    • Find a job
    • Jobs by email
    • Careers advice
    • Post a job
  • Brightmine
    • Learn more
    • Products
    • Free trial
    • Request a quote
  • Webinars
  • Advertise
  • OHW+