Union of Shop, Distributive and Allied Workers & Ors v Tesco Stores Ltd [2022] EWHC 201 (QB) (3 February 2022)

Union of Shop, Distributive and Allied Workers & Ors v Tesco Stores Ltd [2022] EWHC 201 (QB) (3 February 2022)

The express term that Retained Pay is a 'permanent' feature means it endures for as long as the employee remains employed in the relevant role, except in specified circumstances. Tesco is not entitled to terminate contracts and re-engage employees solely to remove Retained Pay. The Defendant is restrained from...

Source-derived case information.

Citation
[2022] EWHC 201
Parties
Claimant: The Union of Shop, Distributive and Allied Workers; Claimant: Mr Christopher Webb; Claimant: Mr Jagpreet Singh; Claimant: Mr Sandeep Kumar; Defendant: Tesco Stores Limited
Jurisdiction
England and Wales
Judgment Date
03 February 2022
Procedural Posture
CPR Part 8 Claim / Final Judgment After Trial
Outcome
Claim allowed
Legal Topics
Implied Terms, Collective Bargaining, Dismissal and Re Engagement, Estoppel, Declaratory Relief, Injunctions
Employment Law Contract Law Implied Terms Collective Bargaining Dismissal and Re Engagement Estoppel Declaratory Relief Injunctions

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Summary, issues, holding and outcome

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Parties

The Union of Shop, Distributive and Allied Workers

Claimant

Mr Christopher Webb

Claimant

Mr Jagpreet Singh

Claimant

Mr Sandeep Kumar

Claimant

Tesco Stores Limited

Defendant

Procedural Posture

CPR Part 8 Claim / Final Judgment After Trial

Legal Issues

  1. 1 Whether Tesco can terminate contracts and re-engage employees without Retained Pay despite prior assurances of permanence
  2. 2 Proper construction of 'permanent' entitlement to Retained Pay
  3. 3 Whether an implied term restricts Tesco's right to dismiss for the purpose of removing Retained Pay

Ratio Decidendi

The express term that Retained Pay is a 'permanent' feature means it endures for as long as the employee remains employed in the relevant role, except in specified circumstances. Tesco is not entitled to terminate contracts and re-engage employees solely to remove Retained Pay. The Defendant is restrained from withdrawing Retained Pay or dismissing and re-engaging on terms excluding Retained Pay. The mutual intention and unequivocal representations create a binding contractual entitlement, enforceable by declaration and injunction.

Court Disposition

Claim allowed

Orders

  • Declaration that Retained Pay is a permanent contractual entitlement for affected employees
  • Injunction restraining Tesco from withdrawing Retained Pay or dismissing and re-engaging employees on terms excluding Retained Pay