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You are here: BAILII >> Databases >> England and Wales Court of Appeal (Civil Division) Decisions >> Cameron v Digital Equipment Company Ltd [2002] EWCA Civ 401 (25 February 2002) URL: http://www.bailii.org/ew/cases/EWCA/Civ/2002/401.html Cite as: [2002] EWCA Civ 401 |
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IN THE COURT OF APPEAL (CIVIL DIVISION)
ON APPEAL FROM ORDER OF MR PEREGRINE SIMON
(Sitting as a Deputy High Court Judge)
Strand London WC2 Monday, 25th February 2002 |
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B e f o r e :
SIR ANTHONY EVANS
SIR DENIS HENRY
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CAMERON | Appellant | |
- v - | ||
DIGITAL EQUIPMENT COMPANY LTD | Respondent |
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Smith Bernal Reporting Limited, 190 Fleet Street,
London EC4A 2HD
Tel: 0171 421 4040
Official Shorthand Writers to the Court)
MISS JANE TRACY FORSTER (Instructed by Field Seymour Parkes of Reading, Berkshire) appeared on behalf of the Respondent
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Crown Copyright ©
"Secondly, in order that a redundancy situation arises, it is necessary to show that the requirements of the defendant's business for employees to carry out work of a particular kind at a place where the employee is employed have ceased or diminished or are expected to cease or diminish.
The claimant points to two factors which show that a redundancy situation had occurred. First, evidence that 450 employees had been made redundant by the year end June 1990. This evidence is not particularly compelling in the context of the claimant's job or in the light of the large number of employees that continued to be employed.
However, the claimant also points to a number of internal documents from which the claimant's managers appear to have considered that the claimant was redundant. There are examples of this at E/85 and 86, E/144 and E/195, where Mr Holland wrote: `In the surviving group [the claimant's] job no longer exists."
"Against this, there is the evidence of every witness who was asked about the issue of redundancy (Mr Allen-Butler, Mr Davies, Mr Holland and Mr Shingles) that the claimant was not redundant. There is the specific evidence of Mr Davies who said that he still considered that there was still a place for the claimant in the EDG in February 1990 and there is the evidence of Mr Wright that, in view of the difficulties in the preceding six months, the claimant would not have been considered for redundancy. I accept this evidence and the submission of Mrs Tracy Forster that the claimant's role within the EDG was not strictly defined or confined so that there is a tendency to use the words `redundant' and `redundancy' in a loose way that does not necessarily coincide with the legal test. I also accept that the EDG was a fluid and developing organisation under Mr Davies' leadership and the failure to replace the claimant is not compelling evidence of redundancy, as it might be in other circumstances."
" ..... a finding of dismissal by reason of redundancy under Section 81 (2) (b) of the Employment Protection (Consolidation) Act 1978 involved a three-stage process: first, it had to be established that the employee had been dismissed, secondly, that the requirements of the employers' business for employees to carry out work of a particular kind had ceased or diminished, or were expected to cease or diminish, thirdly, that the dismissal was caused wholly or mainly by that cessation or diminution;"
"As things stand in the `Group' John is clearly not featured in anyone's plans or business requirement. Therefore even the most positive outcome will beg the question, `what happens to John?'"
"Everyone in the immediate working environment has witnessed John Cameron's absence in this unfolding process and he himself took steps to involve people through emotional telephone calls. Even leaving aside the organisational uncertainties around EDG, I cannot imagine we could re-absorb him in a trustful and constructive way.
I would go further and question whether any company could re-absorb any employee who had behaved in this way over a period of 8 months. From a discussion with Nigel there appear to be 4 possibilities.
1 Encourage John to return and seek to try and find him suitable employment.
2 In view of the dissolution of EDG, make him redundant. This would involve a significant redundancy payment.
3 In view of his failure to re-appear at work following Geoff Shingles' letter, simply sack him. However, if he then sues us and wins reinstatement at tribunal, pay him off again. This, I understand would turn out to be far cheaper than option 2.
4 Find out if John is amenable to a medical review and possible retirement on grounds of ill health."
"Any manager hiring him will, of course, have to know the difficulties that have arisen in the past - they cannot be buried. Should this be successful, he will have a job with Digital. Should this fail despite his fully consenting with the process, then we will make him redundant in the prescribed way."
"If John is not perceived as a value adding part of the company then we should address the issue either by making him redundant or, if there are grounds, by sacking him. Personally I don't think those grounds exist at this point and if they do not in a form that would prevent him from getting reinstated and compounding the problem."
"The first issue from my perspective in the light of EDG's position and the fact that in the surviving Group John's job no longer exists - is John required by Digital. If not then the courses of action are clear. Redundancy unless there has been gross misconduct."
"I agree with each of your possibilities 1, 2 and 4."
"Though I beg to differ with the third. I think John should come in as we had planned, that we should explain the fact of his redundancy and before that happens we should be sure we know what course of action we want to take."
"the job has changed in responsibility and skill requirements to the point that that is no longer able to be carried out by the original job holder or the job holder considers it unsuitable, ie, the original job no longer exists."
"The claimant was valuable when he was relaxed and went with the flow but he became antagonistic and made demands that would be inappropriate at the best of times but were wholly out of keeping in the difficult business situation we were navigating. No business can be held to the demand that it can be run to the personal agenda of individual employees. This was a highly emotional matter with the claimant and it was very difficult to reach much agreement or rational understanding. Every effort was made to accommodate him but the claimant behaved in an inexcusable and extraordinary manner to all those involved in the grievance process he had initiated. By this time I had known the claimant for 15 years and had played a big part in shaping his career at the defendant. I was anxious to see the matter progressed to a satisfactory conclusion and would have welcomed any opportunity to find him a work situation that would work out satisfactorily."
"This memorandum therefore was intended to `grasp the nettle' and put forward proposals for bringing an end to the situation, which had by now dragged on for some twelve months without any real progress being made."
"Q. The position was that, as you rightly say, that EDG was in a very precarious position in 1989. The position also is that there was in truth no job for Mr Cameron. That is right, is it not?"
to which Mr Davies answered,
"A. No."
"A. ..... All I can say with regard to that, is that the way in which EDG evolved is that it came into existence because we had persuaded the top management of the corporation that there was a very significant opportunity. As a result of that we, I should say I, had been allowed to hire a number of people which included Mr Cameron. I had been looking after them ever since then and had no intention of stopping looking after them, any of them."
"Q. `As things stand in the group John is clearly not featured in anyone's plans or business requirements.' Obviously it means that you had, and you must have, been preparing plans throughout 1989 and probably before that for the EDG and what it clearly says is, as at December 1989, there was no place in those plans in the future of Mr Cameron.
A. I have to explain to you - - excuse me if I may just explain a little about how the group in fact worked which is that we worked loosely together in pursuit of a wide range of opportunities ranging, for example, a huge business arrangement with the American aircraft manufacturer, McDonald Douglas, a number of other customer contacts in Europe, the purchase of a little company in Norway called Metis, a number of contacts with the growing environmental business, all of these were in the context of new ways of doing business. In a normal way of planning, no, we weren't doing planning - - we didn't do planning in a way that would often be expected because simply we were being very opportunistic in the way in which we pursued business, and it was very successful through ten years."
"Q. `Dick's pressing me for a resolution.' What were you pressing for since Russell Holland was not involved in the grievance procedure?
A. A resolution of the fact that we had not seen Mr Cameron for some months in work that the political situation to which I alluded earlier was getting no easier, and this whole situation was significant exposure."
"Q. Let us look at 2 for the minute, what you are proposing there is to make him redundant. That is your second option, is it not?
A. Yes, this was recording some discussions, whether or not it was in any way a feasible option. I do not know. Nobody had been made redundant, nor was made redundant for some considerable time.
Q. We heard from Mr Shingles yesterday that nearly 450 employees in the UK were made redundant to the financial year end 1990?
A. Yes. No, excuse me, when I said nobody was made redundant, I was referring to EDG ..... "
"Q. It was your recommended course of action.
A. And following it I had further discussions with the people to whom the note was sent, and the conclusion of those discussions was, I clearly recall it, that the nettle had to be grasped, that it was completely inappropriate in any business to allow an employee who had behaved as Mr Cameron had to be taken up by another department or any other part of the business.
Q. So you decided not to give him the opportunity to be redeployed and, if that failed, to make him redundant?
A. Yes, I think we came to the conclusion at that time we were simply ducking the issue because over so many months and after so much effort had been expended to try to accommodate him, to try to bring him back under any circumstances, ... they all failed and that we were simply fooling ourselves if we tried to do anything further. That was the conclusion that I reached and felt as the line manager in question I had to."
"A. ..... I believe that we felt that an employee behaving in this way should simply be sacked.
Q. Even though in fact and in truth, of course, he was redundant, he had no job.
A. We discussed that. I addressed that earlier and I believe that that is not the case at all. It is not the way in which EDG ran as a group, and, as I pointed out to you, EDG existed for ten years running in the way that it was and provided very satisfactory careers for a number of people."
"Q. ..... He was redundant, was he not?
A. No, I take this view. I accept that there is a memo in front of me written by Mr Holland. But I go back to my statement, how EDG operated, and I can assure you that if Mr Cameron had come back and sought constructive help in moving forward to a job during the preceding weeks and months, he would have had all the help we could have given him. It would not have been addressed along the lines of: `No, there is no job for him'. The job that he came to was invented for him to a large degree as I did with all the other people in that group.
Q. So what you are saying is you would have invented another job, is that right?
A. Under the circumstances I think we could have looked for ways of employing him usefully, yes.
Q. You would have made a job out of thin air for him?
A. This was the nature of the group that we - - - - -
Q. Why is there no reference to that anywhere in these papers, the possibility?
A. This memo is dated 15th February. This came up at a very, very late stage. If Mr Cameron had been co-operative during September, October, November, December these conversations could easily have taken place.
THE DEPUTY JUDGE: Supposing that he had turned up following Mr Shingles' letter, complying with Mr Shingles' letter, how do you see the discussions going about his future?
A. We would clearly have had to find - - do our best to find a constructive situation for him inside the company, either inside the company or indeed inside EDG if that - - inside the group. You know, if he came back in a tone of reconciliation."
"THE DEPUTY JUDGE: I do not understand.
A. What I said was, what I tried to say was, that if in response to Mr Shingles' memo Mr Cameron had returned in a constructive, should I say, - - in a way of continued constructive conversations then, yes, I would have continued to regard him as part of the group."
"Mr Cameron's job had ceased to exist, had it not?
A. No, this is what I am not accepting."
"A. The subject of redundancy with regard to Mr Cameron never came up as far as I was - - I never thought of him in those terms nor or anyone else in the group other than the group as a whole potentially being threatened with discontinuation which never occurred."
" ..... to what extent did members of the EDG have strictly delineated jobs, properly so called?"
"To virtually no extent whatsoever. The word I would have used initially about the thing was very entrepreneurial and people were taken on because of the opportunities that they could pursue, and, you know, the funding that they could attract and this is what happened. Our mission was to change the way in which business was done and people came in because they could work with particular examples of it."
"Q. As far as we can, yes. But just one other point on this, what that shows at p.112 is that he was redundant.
A. No, it doesn't say that.
Q. He was going to be redeployed because there was no job for him in EDG.
A. This was an exploratory discussion. You will no doubt be aware in commerce that there is constant change going on and in virtually every situation you explore what the possibilities are. It does not mean that the possibilities are probability."
"Q. Yes, but it says there was likelihood the group will cease to exist. How could whatever he had to say change that?
A. The point is there is a differen[ce] between likelihood and probability. At this time in the organisation there was a great deal of discussion about changes, about organisations moving being owned by different vice-presidents and so on. This was merely, as I understand it, a possible discussion about that. The evidence obviously shows that the group continued for a number of years after this.
Q. You see that recommendation for redeployment was in accordance with the extended employment and redundancy procedure, was it not?
A. Redundancy does not enter into this."
"Q. So what your conclusion was at stage 2 was that his job was redundant and that he would need to seek alternative work within Digital. That is right, is it not?
A. No, what I was saying there was `as you find this situation untenable', in other words if Mr Cameron found it untenable then he could seek redeployment elsewhere in Digital. This was a way of trying to find a position where he would feel more comfortable."
"Q. But it would not make any difference as to whether or not his job was there, would it?
A. Well, his job was there. The question is whether he would be best suited to move elsewhere in the organisation."
"MR MacCABE: ..... So what happened then was, you had by the way, as we will see in a minute, you had come out of the grievance procedure at this time but you are still being consulted about it, and what Russell Holland is saying there is there is no job for John.
A. That wasn't my interpretation. But I mean you need to ask Mr Holland about that. But what this actually says is that there are no plans for him, and bear in mind at this point in time, John had not attended work for over three months, so it is actually difficult to make plans for people who aren't there."
"Q, What Mr Holland there is saying is the fact is in the surviving group John's job no longer exists. `Is John required by Digital?' If not then the courses of action are clear, redundancy unless there has been gross misconduct'.
A. I don't read here that he says that John's job does not exist. I think he is putting an if case."
"Q. He did not have a job. He did not have any work to do.
A. At this moment in time that was probably true because he was not there."
"Q. He did not have a future in the group, did he?
A. At that stage I think he did."
"Q. What that suggests is that personnel were of the view that at the time he could be redundant, September 1989. What do you say to that?
A. I don't think there was any question of any of us being made redundant in September 1989. Indeed, none of us were."
"Q. `As things stand in the group, John is clearly not featured in anyone's plans or business requirements.'
A. .....
Q. What did that mean?
A. I believe that was a reflection of the fact that John had been out of contact with the group for some months at this stage. The group was moving on as quickly as it could trying to secure funding, trying to become part I think at that point possibly of the UK subsidiary, although I am not sure that that was ever completed, and the way that the group planned its activity in his absence John was not being included in anybody's immediate thoughts on how they would go forward, how they would drive their projects of the development work.
Q. What you say is: `Even the most positive outcome will beg the question what happened to John, what do we do with John.' That is really what it amounts to.
A. Absolutely. I was concerned that it would be very difficulty to bring John back in to people's thoughts and to the work that we were doing.
Q. The context is that it would be difficult to get him back into any plans or business requirements of the EDG.
A. The EDG was a number of people who were all pursuing individual development plans at that time, business development plans. I cannot think that it would have been impossible. It was just getting more difficult."
"Q. His job did not exist, did it?
A. No, well, it had been difficult to sustain activity with John's absence for a long time and, as I said before, nobody had actually built John into their on-going plans. We were all busy at this time trying to make EDG work.
Q. And nobody wanted to take him back in anyway?
A. On the contrary, if there was a way thatJohn could have been rehabilitated with the group, it was getting very difficult, it was difficult before February, I am sure he would have been, but it proved not to be the case."
"Q. I know this is a difficult question but I must ask it in view of the line taken by my learned friend in cross-examination, when you wrote your memos in February 1990 using the word redundant, redundancy, job does not exist and so forth, you recall all of those matters you were cross-examined about?
A. Indeed.
Q. What I want you to tell my Lord is this, firstly, if Mr Cameron's unhappiness had been resolved during 1989, either by you or by Mr Allen-Butler or by Mr Davies, or anyone else, if it had been resolved and he had returned to his previous relationships with his colleagues, what do you think, if anything would have happened to his job in February 1990?
A. I can only answer in the following fashion, that the group continued to exist for some time afterwards and existed - - it did actually prosper a little after that before it was eventually disbanded, and new challenges came in that required people who were familiar with the way that the group worked who were familiar with the discovery and the development that that had gone on, and at a personal level I believed that John could have contributed to that on-going work if, and only if, those issues had been resolved."