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

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

The express terms of the contracts allowed Tesco to terminate employment on notice, and the term 'permanent' in the Retained Pay clause did not restrict this right. No implied term preventing termination for the purpose of removing Retained Pay was necessary or obvious, and the pre-contractual statements were not sufficiently clear or mutual to found an estoppel. The injunction granted by the High Court was inappropriate as it was not clear and precise, and such relief is not available in these circumstances. The appeal was allowed and the High Court's orders were set aside.

Parties
Claimant/respondent: Union of Shop, Distributive and Allied Workers; Claimant/respondent: Christopher Webb; Claimant/respondent: Jagpreet Singh; Claimant/respondent: Sandeep Kumar; Defendant/appellant: Tesco Stores Ltd
Jurisdiction
England and Wales
Judgment Date
15 July 2022
Procedural Posture
Civil Appeal / Appeal From High Court Judgment
Outcome
Appeal allowed; High Court judgment and injunction set aside.
Legal Topics
Interpretation of Employment Contracts, Implied Terms, Promissory Estoppel, Injunctions in Employment Disputes
Employment Law Contract Law Interpretation of Employment Contracts Implied Terms Promissory Estoppel Injunctions in Employment Disputes

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Parties

Union of Shop, Distributive and Allied Workers

Claimant/respondent

Christopher Webb

Claimant/respondent

Jagpreet Singh

Claimant/respondent

Sandeep Kumar

Claimant/respondent

Tesco Stores Ltd

Defendant/appellant

Procedural Posture

Civil Appeal / Appeal From High Court Judgment

Legal Issues

  1. 1 Whether the term 'permanent' in the Retained Pay clause prevents Tesco from terminating contracts to remove Retained Pay
  2. 2 Whether a term should be implied restricting Tesco's right to terminate for the purpose of removing Retained Pay
  3. 3 Whether promissory estoppel prevents Tesco from removing Retained Pay

Ratio Decidendi

The express terms of the contracts allowed Tesco to terminate employment on notice, and the term 'permanent' in the Retained Pay clause did not restrict this right. No implied term preventing termination for the purpose of removing Retained Pay was necessary or obvious, and the pre-contractual statements were not sufficiently clear or mutual to found an estoppel. The injunction granted by the High Court was inappropriate as it was not clear and precise, and such relief is not available in these circumstances. The appeal was allowed and the High Court's orders were set aside.

Court Disposition

Appeal allowed; High Court judgment and injunction set aside.