Employees at Tesco-owned One Stop’s head office want an improved redundancy deal after it emerged staff on Tesco contracts were being offered a better package.

One Stop head office staff had been told to expect statutory redundancy pay.

However those working directly for Tesco are entitled to an additional length service payment, potentially worth thousands of pounds, the Guardian reported.

Tesco is in the midst of a cost reduction drive and about 2,300 people will leave the retailer in the coming months.

Tesco chief executive Dave Lewis has said that 1,200 head office jobs were on the line and a call centre in Cardiff would shut next year, with the loss of 1,100 jobs.

One Stop is run from a separate head office in the West Midlands.

Senior management departures

The round of job losses at Tesco has brought the departure of members of the senior management, including franchise director Andrew King and retail director Mark Williams.

Tracey Clements, managing director of Tesco’s convenience business, also oversees One Stop as its chief executive.

One source told the Guardian that the redundancy programme had not been handled well and that staff felt it was not a “level playing field”.

One Stop representatives are expected to meet Tesco managers today to discuss redundancy terms, which are yet to be finalised.

A Tesco spokesperson said: “We’re making a series of changes to our service model across Tesco to further simplify our business, including in our One Stop business.

“While One Stop will continue to be run as a separate business, these changes will mean we are able to take further advantage of synergies and experience between the two businesses, simplify our operations and align our service models more closely.”

One Stop insiders maintained it was difficult to argue that One Stop, which has 850 stores, was a standalone operation.

The departure of top managers means Tesco executives will have more direct involvement than ever in how it is run.