Union of Shop, Distributive and Allied Workers v Tesco Stores Ltd

Subject Matter

EMPLOYMENT — Contract of employment — Implied term — Employment contracts providing for entitlement to enhanced pay on “permanent” basis — Express term also allowing for termination of employment on provision of notice — Employer seeking to terminate contracts and re-engage employees on terms not including enhanced pay entitlement — Meaning of “permanent” — Whether term to be implied to effect employer not to exercise express right to terminate for purposes of removing entitlement to enhanced pay

[2022] EWHC 201 (QB); [2022] ICR 722; [2022] WLR(D) 63, QBD

EMPLOYMENT — Contract of employment — Implied term — Employer seeking to relocate employees — Employees agreeing to new contracts with provision for retained pay as incentive to relocate — Retained pay expressed to be “permanent” contractual feature “guaranteed for life” — Employer subsequently seeking to terminate contracts and re-engage employees on terms not including entitlement to retained pay — Whether employer entitled to do so — Whether prevented by term to be implied in employment contracts or by estoppel

[2022] EWCA Civ 978; [2022] ICR 1573; [2023] 1 All ER 326; [2022] WLR(D) 312, CA

EMPLOYMENT — Contract of employment — Implied term — Employer seeking to relocate employees — Employees agreeing to new contracts with provision for retained pay as incentive to relocate — Retained pay expressed to be “permanent” contractual feature “guaranteed for life” — Contracts containing term entitling employer to terminate contract on provision of notice — Employer seeking to terminate contracts and re-engage employees on terms not including entitlement to retained pay — Whether employer entitled to do so — Whether prevented by term to be implied in contracts

[2024] UKSC 28; [2025] ICR 107; [2025] 2 All ER 565; [2024] IRLR 998, SC(E)

EMPLOYMENT — Contract of employment — Injunction — Employer seeking to terminate contracts with provision for retained pay and re-engage employees on terms not including entitlement to retained pay — Employees seeking injunction requiring employer to continue employing them on retained pay — Whether damages adequate — Whether breakdown of mutual trust and confidence — Whether injunction to be granted

[2024] UKSC 28; [2025] ICR 107; [2025] 2 All ER 565; [2024] IRLR 998, SC(E)

Appellate History

Commentary

UK Labour Law
Limiting an employer’s right to dismiss on notice: Aspden v Webbs Poultry and USDAW v Tesco Case comment

Blackstone Chambers
Damages as an adequate remedy in Employee Competition claims Case comment