The appeal brought by the Union of Shop, Distributive and Allied Workers (USDAW) centred on whether Tesco Stores Limited could use the fire and re-hire mechanism to terminate certain employment contracts which included an entitlement to ‘retained pay’, described as a ‘permanent’ benefit, and offer re-engagement on terms without retained pay.

USDAW had lost an appeal at the Court of Appeal in 2022, which has now been overturned.