This year has seen notable legal cases in the grocery sector, influencing both companies and employees alike.
- Over 60,000 Asda employees are affected by a case regarding unequal pay between retail and warehouse workers.
- Tesco’s ‘fire and rehire’ practices were challenged and lost in the Supreme Court, affecting retained pay agreements.
- Oatly won a crucial battle against the UK dairy industry, securing their right to use ‘milk’ on plant-based products.
- Diageo faces legal action over property damage from ‘angel’s share’ fungus caused by their distilleries.
- Deliveroo riders’ status as non-workers was upheld, impacting their ability to unionise.
The second stage of a pivotal court case involving Asda has commenced, potentially affecting over 60,000 employees. This case highlights the pay disparity between the predominantly female retail staff and the mainly male warehouse workers. The tribunal is examining whether roles are of equal value, as claimed by the union. Asda has firmly rejected any gender-based pay differential, citing distinct industry skill sets and pay structures. A ruling is anticipated in 2025, possibly leading to substantial financial implications for the retailer.
The Supreme Court recently adjudicated on a longstanding dispute between Tesco and Usdaw, centring on contentious ‘fire and rehire’ practices. The ruling reinforced that Tesco cannot terminate employment contracts to remove ‘retained pay’ from employees. This outcome underscores the protection of such pay agreements, originally made to incentivise relocations. Tesco acknowledged the ruling and reiterated its commitment to equity among distribution centre staff.
At the close of the previous year, the High Court ruled in favour of Oatly in its dispute against the dairy industry, marking a victory for plant-based branding rights. The contention revolved around Oatly’s use of ‘milk’ in their packaging. The court’s decision permits Oatly to continue using the term, arguing that the average consumer understands the distinction from animal-derived milk. This case sets an important precedent for the labelling of plant-based products.
In a notable environmental dispute, Diageo faces legal proceedings as residents allege property damage due to ‘angel’s share’ fungus. The couple spearheading the case claim the distillery’s operations have led to a decade of black fungus accumulation on their property. Having been granted the right to sue, this case could significantly impact the Scotch whisky industry if the claimants succeed.
The Supreme Court delivered a unanimous decision regarding Deliveroo, concluding riders do not qualify as ‘workers’ under UK law. This classification maintains riders’ self-employed status, affirming their independence in work choices and hours. Consequently, they lack the legal grounds to unionise for collective bargaining. The union involved has acknowledged the growing membership of riders seeking representation despite legislative limitations.
These cases collectively shape the grocery sector, setting legal precedents and influencing future industry practices.
