Supreme Court restores High Court injunction restraining Tesco from ‘firing and rehiring’ employees on less favourable terms

In Tesco Stores Ltd v Union of Shop, Distributive and Allied Workers (USDAW) [2024] UKSC 28, in a unanimous decision in which Lord Burrows and Lady Simler delivered the leading judgment, the Supreme Court agreed with the previous High Court decision and restored the injunction restraining Tesco from terminating employment contracts for the specific purpose of depriving employees of their ‘permanent’ contractual right to retained pay and offering re-engagement without this inclusion. The employment contracts contained an implied term which prevented Tesco from exercising dismissal rights for this purpose.

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