Tesco announces increase in paternity leave

Tesco has agreed a 9.1% pay rise for staff and an increase in paid paternity leave.

The announcement was made after an agreement was reached with trade union USDAW on the hourly pay rate for store workers, which will rise from £11.02 to £12.02.

The new rate will come into effect from 28th April 2024, nearly a month after the legal minimum wage rises to £11.44 for those over 21 – a delay which has angered some workers. Employees will be eligible for six weeks of paternity leave on full pay while the maximum company sick pay entitlement is rising to 18 weeks for eligible employees.  Tesco previously announced 26 weeks of fully paid maternity, adoption and kinship leave. It describes the paternity leave agreement as “industry leading”.

The supermarket chain has also recently launched a virtual GP service for employees and a right to request flexible working from day one.  Tesco says it is the first major supermarket to introduce a day one right to request.

Tesco also provides employees with Colleague Clubcard discount of up to 15% on their shopping, free food in store canteens and a pay advance scheme.  The annual Colleague Clubcard discount allowance to £2,000 (up from £1,500), which can be shared with a family member in a second household.

Daniel Adams, USDAW National Officer, said: “This deal not only delivers an inflation-busting increase for Tesco employees, but it also demonstrates the value of progressive employers engaging constructively with trade unions at a time when the cost-of-living pressures continue to be keenly felt by our members.  We welcome the Company’s positive response through our negotiations which have resulted in the largest investment in pay in a single year, with the highest entry rate for store employees of any major supermarket.  Moreover, at a time when some employers are rowing back from commitments they have made around the Real Living Wage, this deal ensures all rates of pay for store employees continue to be either at or above the Real Living Wage.”

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