From: Jordan English <jordan.english@sjc.ox.ac.uk>

Sent: Thursday 12 September 2024 12:17

To: obligations@uwo.ca

Cc: Alan Bogg

Subject: Tesco Stores Ltd v Union of Shop, Distributive and Allied Workers [2024] UKSC 28

 

Dear all,

 

Members might be interested in the decision today of the UKSC in Tesco Stores Ltd v Union of Shop, Distributive and Allied Workers [2024] UKSC 28.

 

The case concerns Tesco workers who were induced to relocate to other sites in 2007 for the promise of retained pay . Basically, any difference in value between their old remuneration and their new remuneration was to be protected. The express retained pay term provided that the retained pay would be a permanent feature of an the employees contractual eligibility. The term was part of a collective agreement incorporated into the employees contract of employment (either expressly or by custom).

 

Suffice to say, in 2021 Tesco wanted to phase out the retained pay obligation. As a carrot , it offered an advance payment of 18 months of retained pay in return for employees agreeing to the cessation of their retained pay rights. The stick was that if did not agree, the contracts would be terminated on notice pursuant to an express contractual term and the dismissed employees would then be re-engaged under a new contract without the retained pay benefit (a strategy known as fire and rehire ).

 

Allowing the appeal from the Court of Appeal, Lord Burrows and Lady Simler (Lord Lloyd-Jones agreeing; Lord Leggatt and Lord Reed concurring but writing separately) held:

 

  1. that the express contractual termination power (or express dismissal power) was subject an implied restriction that it could not be exercised for the purpose of depriving the employees of their right to permanent retained pay; and

 

  1. that an injunction (which in substance amounted to specific performance of the contract) should be granted to restrain Tesco from terminating the contracts/dismissing the employees in breach of this implied term.

 

The judgment obviously will be of interest to labour lawyers but for doctrinal private lawyers it is also worth reading. It contains a discussion about the approach to contractual interpretation and the implication of terms by fact (see at [32] [57] per Burrows and Simler and [98] [106] per Leggatt) and more interestingly (for me at least), a good discussion about injunctions/indirect specific performance and whether specific performance should be ordered of a contact of employment (for which the general rule is no , but it was allowed here where there was no breakdown in trust and confidence). This discussion is at [58] [84].

 

For Braganza enthusiasts, there is also a little dialogue between Lord Leggatt and Lord Reed on this (see at [115] [120] and [149]).

 

Finally, the case which although involving a fundamental labour law dispute is, at bottom, a contract case is a good illustration of a point Alan Bogg has been making for some time about the role of doctrinal private law and labour law. In his words:

 

It is now time for a renaissance of lawyer s law in labour law given the relative success of strategic litigation. Historically, doctrinal scholarship in labour law was viewed with a degree of suspicion . The underlying message of this article rejects this fashionable view of serious legal scholarship. Doctrinal analysis is indispensable to the scholarly enterprise in labour law. It should take its rightful place alongside socio-legal, critical, comparative, and philosophical modes of enquiry.

 

(A. Bogg, Can We Trust the Courts in Labour Law? Stranded Between Frivolity and Despair (2022) 38 Int.J.Comp.L.L.I.R. 103).

 

All best,

 

Jordan

 

Jordan English

Supernumerary Teaching Fellow in Law

St John s College, Oxford OX1 3JP

T: +44 (0)1865 270862