UK Supreme Court Halts Tesco’s 'Fire and Rehire' Practice

The UK's Supreme Court ruled against Tesco's attempt to terminate some employees' contracts and rehire them on less favorable terms. The case was brought by the shopworkers' union Usdaw, which challenged Tesco's efforts to remove warehouse workers' enhanced pay. The controversial 'fire and rehire' tactic has been condemned by labor unions and the Labour Party.

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 favorable terms. The landmark decision comes after the shopworkers' union, Usdaw, took legal action against the retail giant, challenging its termination and rehiring practices aimed at removing increased pay for some warehouse workers.

The Supreme Court's ruling has intensified calls for legislative action against the controversial 'fire and rehire' tactic. Britain's Labour Party has pledged to outlaw the maneuver, though the specifics of such legislation remain pending. Meanwhile, a spokesperson for the Department for Business and Trade confirmed that new legislation would soon be introduced to ban these practices.

Tesco, which commands nearly 28% of the British grocery market, accepted the court's decision. A spokesperson noted the ruling's limited scale, affecting only a small number of employees in the distribution network. The spokesperson emphasized the company's aim of ensuring fairness among all its distribution center colleagues. Usdaw General Secretary Paddy Lillis hailed the decision as a significant victory for the trade union movement, asserting that such tactics should have no place in industrial relations.

(With inputs from agencies.)