Lawyers representing a union have hailed a judge’s ruling on a “firing and rehiring” High Court fight with Tesco as a “huge win” for workers.
Usdaw said Tesco was acting “unconscionably” by trying to “unilaterally remove” workers’ entitlement to retained pay.
Tesco disputed the claims.
A High Court judge on Thursday made rulings in favour of Usdaw.
Mrs Justice Ellenbogen, who is based in London had considered arguments at an online High Court hearing in May.
Tesco indicated that it wanted to appeal.
Lawyers representing Usdaw had said Tesco was proposing to issue notices of termination and offer re-engagement on new terms which did not include retained pay.
Union bosses asked Mrs Justice Ellenbogen to “restrain” Tesco.
This is a huge win for the workers and for Usdaw
Lawyers representing Tesco said bosses were using a “contractual mechanism” open to employers.
Lawyer Neil Todd, who represented Usdaw and is based at Thompsons Solicitors, said, after the ruling: “This is a huge win for the workers and for Usdaw.
“The practice of firing and rehiring staff on less favourable terms and conditions has been in widespread use over the last 18 months as employers try to erode rights that have been hard fought for and are there to protect some of the lowest paid in society.”
Joanne McGuinness, Usdaw’s national officer, added: “Companies are more frequently resorting to using fire and rehire tactics when they want to reduce employees’ terms and conditions of employment.”
A spokeswoman for Thompsons Solicitors said Usdaw had succeeded in a claim against Tesco which would “protect its workers from unfair fire and rehire tactics”.
She said Usdaw had brought the case on behalf of 42 workers employed by Tesco at distribution centres in Daventry, Northamptonshire and Litchfield, Staffordshire.
“The group faced having their wages cut as part of a change to their terms and conditions of employment by Tesco,” she added.
“Today’s High Court ruling will prevent the supermarket’s ‘fire and rehire’ practice in this case where it had sought to lay people off and re-employ them on new contracts, with less favourable terms and conditions, in England.
“The court noted that the 42 workers had been guaranteed an entitlement to a specific payment labelled ‘retained pay’ to keep them within the business, which Tesco intended to remove by firing and then rehiring them.
“The judge held that there was an implied term in the workers’ contracts that the right to terminate employment could not be exercised if the aim was to remove a right to ‘retained pay’.”
