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United Kingdom Employment Appeal Tribunal |
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You are here: BAILII >> Databases >> United Kingdom Employment Appeal Tribunal >> Thornett v Scope [2006] UKEAT 0477_05_0702 (7 February 2006) URL: http://www.bailii.org/uk/cases/UKEAT/2006/0477_05_0702.html Cite as: [2006] UKEAT 0477_05_0702, [2006] UKEAT 477_5_702 |
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At the Tribunal | |
Before
HIS HONOUR JUDGE McMULLEN QC
MR B BEYNON
MR I EZEKIEL
APPELLANT | |
RESPONDENT |
Transcript of Proceedings
JUDGMENT
For the Appellant | MR ANDREW BLAKE (of Counsel) Instructed by: Messrs Gill Akaster Solicitors Gill Akaster House 25 Lockyer Street Plymouth Devon PL1 2QW |
For the Respondent | MR DIJEN BASU (of Counsel) Instructed by: Eversheds LLP Solicitors Kett House Station Road Cambridge CB1 2JY |
SUMMARY
Unfair Dismissal: Compensation
Compensation for unfair dismissal was capped at 6 months' forward losses on the ground that the Claimant would have been dismissed at that stage. Since the parties could make attempts to work together, applying Gover v Propertycare and cases cited in it, the Employment Tribunal could not sensibly recreate the world as it might have been and should not have reduced the losses. Equally, the judgment that the Claimant would have been made redundant at that time was perverse, since the evidence of the Respondent, on whom the burden of proving that loss should be capped lies was that the service of which the Claimant was the lynchpin would have continued.
HIS HONOUR JUDGE McMULLEN QC
Introduction
"15. …. We have to decide whether the respondents have established the reason and we find that they have. It was a reason of some other substantial kind. It was that the respondents perceived that Dr Thornett's employment could no longer continue in the way that it had. She could no longer continue to work in Exeter and she was not prepared to relocate to Cardiff."
But it held that the dismissal was unfair and the Claimant contributed 25% to it by her own blameworthy conduct.
The issues
The appeal
The legislation
"123 Compensatory award
(1) Subject to the provisions of this section and sections 124, 124A and 126, the amount of the compensatory award shall be such amount as the tribunal considers just and equitable in all the circumstances having regard to the loss sustained by the complainant in consequence of the dismissal in so far as that loss is attributable to action taken by the employer".
That section is subject to the duty to mitigate and to reductions on account of contributory fault. The Tribunal did not expressly direct itself by reference to that section or to any authority on the assessment of compensation.
The facts
"4. The facts of this matter are that the claimant was moved from Cambridge to Vranch House in Exeter sometime in early 2000. The respondents have several establishments throughout the United Kingdom, one being at Vranch House where the micro-technology service was situated. Those premises are owned by the Devon and Exeter Spastics Society. That Society made premises available to Scope under an informal arrangement. By the time the claimant's employment terminated she was the Manager of the service based at Vranch House. The staff there consisted of herself, an administrator and 2 engineers, Tom Warren and John Jones. The claimant is, as we have indicated, a highly qualified engineer. The micro-technology service provides aids to disabled persons, principally those suffering from cerebral palsy. The claimant's function was to carry out assessments of clients' needs. For this purpose she travelled throughout the United Kingdom. Her Personal Assistant made appointments for her to visit clients in various parts of the country. She would then assess what aids the individuals might need according to their circumstances and the nature of their disability. Dr Thornett's function would then be either to manufacture whatever equipment was needed or adapt existing equipment to meet the needs of the individual. In this she was assisted by Mr Warren and Mr Jones who were based exclusively at Vranch House. They did not travel. There was quite clearly a requirement for considerable liaison between Dr Thornett and those two individuals in order that she should, make clear precisely what was needed for particular clients. One feature of this case is that there has been no word of criticism whatsoever of Dr Thornett's professional skills, professionalism or dedication to the work, rather the reverse; there appears to have been some criticism of her due to the fact that she did not take as much holiday as she was entitled to and worked very long hours indeed in order to provide a service to the clients which the respondents, we are sure, regarded as first class.
5. The claimant lived at Crediton some 9 or 10 miles away from Exeter. The pattern of her working week was that she would usually go to the micro technology unit on Mondays before spending 3 or 4 days a week out in the field carrying out assessments. On her return, she would participate in the manufacture and adaptation of equipment and also bring back the work to be done by the 2 engineers. Another important feature of her duties was that she would make sure she kept up to date with the latest technological advances in this very specialist and important field. She was also the Manager of the Unit having budgetary responsibilities as well".
As can be seen, in that happy environment a difficulty arose, for the Tribunal said this:
"6. During the summer of 2003 Mr Jones raised a complaint against Dr Thornett that she had been bullying him and harassing him. That was taken up under the respondent's disciplinary procedure. Dr Thornett was suspended on 1 August 2003. Effectively the service went into suspension since there was no one to carry out the necessary assessments. Under the terms of her suspension Dr Thornett was not able to visit Vranch House" .
"7. Suffice it say that by the autumn however that matter had blown over, although at one stage in September Col Wheeler indicated that the respondents were to leave Vranch House completely. However the relationship between the Respondent and the Spastics Society continues to be a difficult one and notice to vacate the premises has been given".
The disciplinary investigation which had been set en train resulted in the Claimant being disciplined and given a final written warning and her appeal against that was dismissed on 29 December 2003. The Tribunal said this
"She continues to feel aggrieved at the outcome of that matter and it seems that there is some sense of resentment nurtured by her colleagues, Mr Warren and Kerry Vanstone, the Administration Assistant who seem to have sided with Dr Thornett in the matter. Nevertheless, the respondent's took the view that in view of the difficulties that had arisen Dr Thornett should no longer be involved as the manager of the Micro-technology Unit. They proposed that she should be relocated to work at the respondent's school at Craig-y-Parc just outside Cardiff".
"14 During the course of the discussions that took place the headmaster of the school at Craig-y-Parc, Mr Neil Harvey, spoke to the remaining staff at the micro-technology unit and reported to the Chief Executive, Mr Tony Mannering, that all those individuals, including Mr Jones, were happy to work with Dr Thornett again. The discussions bore no fruit and the claimant's employment came to an end on the 21 April 2004 in circumstances which the respondents now concede amounted to a dismissal".
That is attested to in a letter which he wrote and which we have been taken to in detail. The Tribunal set itself the task of deciding whether the Respondent had produced a reason. It held that the reason for dismissal was some other substantial reason under s98(1) and (2) and it was this:
"It was that the respondents perceived that Dr Thornett's employment could no longer continue in the way that it had. She could no longer continue to work in Exeter and she was not prepared to relocate to Cardiff".
"16. ……. The Respondent's case is that there was no other option available and that in the light of Dr Thornett's resistance to the proposed move they had no alternative but to terminate her employment. There was another alternative and, in view of the fact that the respondents were driving the situation, we think it is one which should have been pursued. It was an alternative which was not without risks. It had the potential to fail but nevertheless in our judgment a reasonable employer would have followed it as far as possible. The alternative was that the parties should continue to work as before with the claimant returning to Vranch House. She had been given a warning. It is clear that Dr Thornett was unhappy about that but nevertheless we think a reasonable employer would have taken active steps to encourage the parties to work together. It is a situation which would have required careful management and it is impossible for us to reach any conclusion as to whether in the long term it might have worked. The respondents had indicated to the claimant that they valued her services and in those circumstances we think a reasonable employer would have taken steps to explore that option. That was not done. In particular Dr Thornett made it clear that she was not aware of any proposal that she should return to Vranch House one day a week. We think that a reasonable employer at that stage would have appreciated that there might have been a misunderstanding and would set out the proposals with some clarity so that they could have been considered. The respondent's failure to do that in our judgment renders this dismissal unfair.
17. Having said that we have considered the question of contributory fault. We are not revisiting the disciplinary issue which was concluded with the final warning. Nevertheless the respondents were faced with a very difficult managerial situation. The claimant made it clear that she had considerable reservations about working with Mr Jones in view of what she described as what he had done. We think that this was an unreasonable attitude for Dr Thornett to take. We think that a reasonable attitude for her to have taken would be to express the view, as had her colleagues, that they were at least prepared to try and make the situation work. We are not oblivious to the potential difficulties of that. In that she failed to do that, we think Dr Thornett's conduct was a contributory factor in the termination of her employment and one which we think would be just and equitable to reflect in our finding and in any award of compensation should we be invited to make one. We assess that contribution at 25%".
18. We have been asked to try and reach some assessment as to how long the situation would have lasted if the respondents had encouraged the parties to try and make the arrangement work. We have not seen Mr Jones. We have not had any opportunity of hearing any evidence from him and of course it is a highly speculative matter, but nevertheless one which is of importance to the parties In our view, we think the arrangement would have lasted about 6 months. We say that for these reasons. First of all, the respondents had expressed a desire to retain Dr Thornett's evident skills and we think that they could and should have made substantial efforts to try and make the arrangement work. Dr Thornett was probably only going to be there one or perhaps two days a week and so not in Vranch House on a daily basis and Mr Jones had expressed a willingness to try and make it work. For those reasons that is the best assessment we can make".
"20. Our assessment as we have already indicated is that by reason of the changes in the operation of the micro-technology unit and the attitude of landlords, we think that Dr Thornett would have been made redundant in any, event at about the end of 2004 or early 2005. Having regard to the difficulties which beset the working relationship we think there is a likelihood that her employment might even have come to an end before that but 6 months is the best assessment we can make. That is the basis on which we approach the compensation in this case".
In those circumstances, therefore, two reasons were put forward by the Employment Tribunal for limiting the loss of the Claimant into the future to a period of six months post dismissal.
The Claimant's case
The Respondent's case
The legal principles
"19. The most recent exposition of this approach is found in the judgment of the Court of Appeal in Lambe v 186K [2004] EWCA 1045 where there is a full analysis of Polkey and other judgments including, importantly, the judgment of the Court of Appeal in O'Dea v ISC Chemicals Ltd [1995] IRLR 599. Giving the judgment of the Court, Wall LJ in Lambe, having cited the passage from Lord Prosser's conclusion, emphasised the words which appear as follows:
'…It seems to us that the matter will be one of impression and judgment, so that a tribunal will have to decide whether the unfair departure from what should have happened was of a kind which makes it possible to say, with more or less confidence, that the failure made no difference, or whether the failure was such that one cannot sensibly reconstruct the world as it might have been…
59. We respectfully agree with the formulation contained in the highlighted passage from that citation. However, we share Peter Gibson LJ's view, expressed in the extract from his judgment in O'Dea which we have cited, that it is unhelpful for the purposes of assessing compensation to characterise the defect in the employer's behaviour as either substantial or procedural. The highlighted passage from King v Eaton (No 2) seems to us both practical and to coincide with the approach of this court in O'Dea. It provides Tribunals with a straightforward and sensible yardstick with which to approach such cases, and avoids unnecessary and unproductive debate about whether a particular piece of conduct fits into the "substantive" as opposed to the "procedural" category.
60 The application of the O'Dea / modified King v Eaton (No 2) approach to the facts of the instant case leads us to the conclusion that on the evidence available to it, the Tribunal was entitled to conclude that in the Appellant's case, whilst both the process of selection for redundancy and the absence of consultation was unfair, it was unlikely that the Appellant would have found alternative employment with the Respondent or any of its associated companies at the conclusion of an extended period of consultation. The Tribunal was entitled to find that what the Appellant wanted was his job back, and that he was not willing to consider the alternative offered by the Respondent, which the Tribunal found was both a promotion and commanded a higher income. In short, this was not a case in which it was impossible for the Tribunal sensibly to reconstruct the world as it never was: the Tribunal was entitled to come to the conclusion that an extended period of consultation should have taken place, but that at the end of it, the Appellant would still have left the Respondent's employment.'
20. From this it appears there is a modification of the King approach in line with the Court of Appeal's judgment in O'Dea. The correct approach is not for a Tribunal to adopt a taxonomy which separates procedural from substantive issues but to ask itself the question: was there an unfair departure from what would or should have happened? That is apt, in our judgment, to include not only what are popularly, and as Lord Bridge put it, conveniently known as procedural issues, but also substantive issues. In a simple case, a failure on a redundancy selection exercise to calculate accurately a person's performance points, or sickness record, might be regarded as substantive. It might in some circumstances be regarded as unfair procedurally but in either case it represents an unfair departure from what would or should have happened. What is necessary is that the Tribunal should have confidence in deciding whether or not it could sensibly reconstruct what would have happened had there been no such failing.
20. In O'Donoghue v Redcar v Cleveland Borough Council [2001] IRLR 615 the Court of Appeal again considered a situation where there had been a reduction in compensation. In this case the reduction was based upon a view taken by the Tribunal that the Claimant's attitude and subsequent behaviour would have caused a rupture in the relationship at some stage later than the actual termination of the employment".
"(3) Cases where a reduction has been effected because the Claimant was likely to have been dismissed on another ground, for example, O'Donoghue above and James W Cook & Co (Wivenhoe) Ltd v Tipper [1990] ICR 716 (factory closure)".
Conclusions