UK Supreme Court Rules Against Tesco's 'Fire and Rehire' Tactics

The UK's Supreme Court ruled that Tesco cannot terminate employees' contracts and rehire them on less favourable terms. Usdaw, the shopworkers' union, challenged Tesco's attempt to eliminate increased pay for some warehouse workers, leading to the Supreme Court's decision to uphold an injunction against the practice.

The United Kingdom's Supreme Court has ruled that Tesco was not entitled to terminate some employees' contracts and offer to rehire them on less favourable terms.

The decision came after Usdaw, the shopworkers' union, initiated legal proceedings against the nation's largest retailer. Tesco had sought to remove the increased pay entitlement for certain warehouse workers by ending their contracts and re-engaging them under less favourable conditions, a practice commonly referred to as 'fire and rehire'.

The Supreme Court found that Tesco was not permitted to employ 'fire and rehire' in these circumstances and reinstated an injunction preventing the retailer from pursuing this strategy.

(With inputs from agencies.)