RETAIL union Usdaw celebrated a “huge win” at the High Court today against Tesco’s use of widely condemned fire and rehire tactics.

The union brought the case on behalf of 42 workers employed by the supermarket giant in its Daventry and Lichfield distribution centres.

The staff, represented by Thompson’s solicitors, faced wage cuts as part of a change to their terms of employment, but the landmark ruling means the company cannot now force new contracts on them. 

Thompson’s trade union specialist Neil Todd said: “This is a huge win for the workers and for Usdaw.

“The practice of firing and rehiring staff has been in widespread use over the last 18 months as employers try to erode rights that have been hard fought for.

“We are proud to have represented a union in taking on corporate giants who use fire and rehire tactics against the staff who had served them so loyally.”

The court noted that the workers had been guaranteed an entitlement to “retained pay” – a payment 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 the payment. 

Usdaw national officer Joanne McGuinness slammed employers who are “more frequently resorting” to the tactic instead of entering into negotiations. 

She added: “Rather than reaching an agreement, they simply threaten the employees with termination of their contracts, leaving them with an impossible choice.

“Tesco refused to negotiate with Usdaw which was left with no option but to seek a legal solution so as to protect its members’ pay.”

Praising the “resounding victory,” TUC general secretary Frances O’Grady said: “Too many employers think they have free rein to threaten workers with the sack if they don’t accept a new contract on worse pay or conditions.

“[The] judgment is an important win, but we can’t just rely on the courts to protect working people using current weak laws – we need action from government too. 

“It’s time for ministers to protect and enhance workers’ rights – that means stopping fire and rehire.”

A Tesco spokesperson said it was “disappointed” with the ruling and intends to appeal.