'Landmark decision' | Tesco loses Supreme Court legal battle over 'fire & rehire' of staff

Tesco has lost a landmark legal battle over “fire & rehire” tactics.

The Supreme Court has ruled that the supermarket was not entitled to terminate some employees' contracts and offer to re-employ them on less favourable terms.

Shop workers' union Usdaw took legal action against Britain's biggest retailer after Tesco sought to remove some warehouse workers' entitlement to increased pay by ending their contracts and offering to re-engage them – a practice often referred to as 'fire and rehire'.

The Supreme Court ruled that Tesco was not permitted to use 'fire and rehire' in these circumstances and restored an injunction preventing the retailer from doing so.