Legal
Tesco Loses UK Top Court Ruling on ‘Fire and Rehire’ Policy
- Right to dismiss workers can’t be used to lower their pay
- The ruling is second legal setback to UK grocers in a month
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Tesco Plc’s controversial “fire and rehire” tactic to take back ex-employees on cheaper terms is unlawful the UK’s top court ruled, in a blow to the British grocer also embroiled in a slew of high profile workers’ rights cases.
Tesco’s policy to fire employees and then rehire them with lower pay was not legally permissible, the Supreme Court ruled overturning lower court decision that Tesco won in 2022. Tesco’s right to dismiss its employees cannot be used to deprive them of the right to retained pay, the judges said in the ruling.