In 2007, Tesco planned to close some of its distribution centres, and offered staff increased “retained pay” so they would relocate.
The union took legal action in 2021 after Tesco proposed getting rid of this retained pay by either offering staff a lump sum to replace it, or terminating their contracts and rehiring them without the increased salary.
Usdaw argued that the retained pay had been described as “permanent” in their contracts, so should be ongoing.
But Tesco described the pay as a “contractual mechanism” open to employers.
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