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England and Wales Court of Appeal (Civil Division) Decisions |
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You are here: BAILII >> Databases >> England and Wales Court of Appeal (Civil Division) Decisions >> Wall v British Compressed Air Society [2003] EWCA Civ 1762 (10 December 2003) URL: http://www.bailii.org/ew/cases/EWCA/Civ/2003/1762.html Cite as: [2004] IRLR 147, [2007] ICR 970, [2003] EWCA Civ 1762, [2004] ICR 408, [2004] Pens LR 87 |
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COURT OF APPEAL (CIVIL DIVISION)
ON APPEAL FROM THE EMPLOYMENT APPEAL TRIBUNAL
(Mr Justice Rimer)
Strand, London, WC2A 2LL |
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B e f o r e :
LORD JUSTICE SCOTT BAKER
and
MR JUSTICE EVANS LOMBE
____________________
D WALL |
Respondent |
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- and - |
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THE BRITISH COMPRESSED AIR SOCIETY |
Appellant |
____________________
Michael Duggan Esq (instructed by Messrs Darlingtons) for the Respondent
Hearing dates: 24th November 2003
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Crown Copyright ©
Lord Justice Simon Brown:
"109 Upper age limit
(1) Section 94 [the right not to be unfairly dismissed] does not apply to the dismissal of an employee if on or before the effective date of termination he has attained -
(a) in a case where -
(i) in the undertaking in which the employee was employed there was a normal retiring age for an employee holding the position held by the employee, and
(ii) the age was the same whether the employee holding that position was a man or a woman,
that normal retiring age, and
(b) in any other case, the age of sixty-five"
"'position', in relation to an employee, means the following matters taken as a whole -
(a) his status as an employee,(b) the nature of his work, and(c) his terms and conditions of employment,"
"For [Miss Hines] it was argued that she fell into a category of one, being the only counselling organiser employed by the appellants, and that there were therefore no employees holding the position which she held within the meaning of s.64(1)(b). If this were so, then plainly, in the necessary absence of comparisons with other employees holding the same position, a normal retiring age could not be established and the statutory alternative of 60 would apply."
"To the question 'was there a normal retiring age for an employee holding the position held by Mr Wall immediately before his dismissal?' the answer, in our view, is 'yes, the only employee holding that position was Mr Wall himself, and it was 70'."
i) Was there a contractual agreement that Mr Wall would retire at the age of 70, ie on 17 April 2003?
ii) If there was such an agreement, did this constitute the normal retirement age, as set out in s109(1)(a) of the Employment Rights Act 1996?
"I have reached the opinion that the Court of Appeal in Nothman [1978] 1 WLR 220 stated the law in terms which were too rigid and inflexible. If the normal retiring age [is] to be ascertained exclusively from the relevant contract of employment, even in cases where the vast majority of employees in the group concerned do not retire at the contractual age, the result would be to give the word 'normal' a highly artificial meaning. If Parliament had intended that result, it would surely not have used the word 'normal' but would have referred directly to the retirement age specified as a term of the employment. Moreover, in a case where, unlike Nothman, the contract provides not for an automatic retiral age but for a minimum age at which employees can be obliged to retire, it would be even more artificial to treat the minimum age as fixing the normal age, as the respondents would have us do, even in a case where the minimum age has become a dead letter in practice. By no means all contracts of employment specify the age, or the minimum age, of retirement; indeed outside of large organisations like the civil service it is probably exceptional for the age of retirement to be specified. So, if the normal retirement age can be ascertained only from the terms of the contract, there will be many cases in which there is no normal retiring age and in which the statutory alternatives of 65 for a man and 60 for a woman will automatically apply, although some other age may be well established and recognised in practice. If that were the law it might operate harshly in the case of women employees over the age of 60, as they would never be entitled to complain to the industrial tribunal of unfair dismissal unless they could establish that they were subject to a contractual retiring age higher than 60.
I therefore reject the view that the contractual retiring age conclusively fixes the normal retiring age. I accept that where there is a contractual retiring age, applicable to all, or nearly all, the employees holding the position which the appellant employee held, there is a presumption that the contractual retiring age is the normal retiring age for the group. But it is a presumption which, in my opinion, can be rebutted by evidence that there is in practice some higher age at which employees holding the position are regularly retired, and which they have reasonably come to regard as their normal retiring age. Having regard to the social policy which seems to underlie the Act - namely the policy of securing fair treatment as regards compulsory retirement as between different employees holding the same position - the expression 'normal retiring age' conveys the idea of an age at which employees in the group can reasonably expect to be compelled to retire, unless there is some special reason in a particular case for a different age to apply. 'Normal' in this context is not a mere synonym for 'usual'. The word 'usual' suggests a purely statistical approach by ascertaining the age at which the majority of employees actually retire, without regard to whether some of them may have been retained in office until a higher age for special reasons - such as a temporary shortage of employees with a particular skill, or a temporary glut of work, or personal consideration for an employee who has not sufficient reckonable service to qualify for a full pension. The proper test is in my view not merely statistical. It is to ascertain what would be the reasonable expectation or understanding of the employees holding that position at the relevant time. The contractual retiring age will prima facie be the normal, but it may be displaced by evidence that it is regularly departed from in practice. The evidence may show that the contractual retirement age has been superseded by some definite higher age, and, if so, that will have become the normal retiring age. Or the evidence may show merely that the contractual retiring age has been abandoned and that employees retire at a variety of higher ages. In that case there will be no normal retiring age and the statutory alternatives of 65 for a man and 60 for a woman will apply."
I should note that the pensionable age for women was then 60; only later was their position assimilated to that of men so that under s109(1)(b) there is now a fall-back age of 65 in all cases.
"If a woman's conditions of employment provide that her retiring age shall be 65, I can find no sensible or just excuse nor any words in paragraph 10(b) [the predecessor legislation] to deprive her of her rights to compensation should she be unfairly dismissed by her employers after she reaches the age of 60 but before she attains the age of 65. Before the unfair dismissal she would probably have planned and arranged her life on the basis that she would continue in her employment until she retired. To be unfairly dismissed before that time, say when she was 61 years old, must surely be a cruel blow. Her plans for her future would be overturned. The chance of finding fresh employment would be minimal and her pension would probably be diminished."
"All that the evidence amounts to, in my judgment, is that the Patels were attempting to impose on [Mrs Nagesan] a contract with a term that she retire at 60, an imposition which she resisted.
If one tests it with Lord Fraser's words in mind, by asking what the employee's reasonable expectation at the time was, it clearly was not that she would have to retire at 60. [Counsel for Mrs Nagesan] puts it in this way: he says you cannot talk of a group expectation when her position is unique. A concept of a normal retiring age simply does not apply. In this context, I would read the words of the appeal tribunal in the final paragraph of their judgment:
'The contention on behalf of the employer was that, because all the other employees had been persuaded to accept 60 as their retiring age for the future, that became the "normal" age for retirement and the employee's case therefore failed. We accept the contention of the employee that, as the 'person in charge' with responsibilities which statute imposes upon an individual holding that office, she was in a unique position. We consider that there was ample evidence upon which the tribunal could find that there was no retirement age specified and that accordingly the statutory retirement age of 65 now applies, there being no other "normal" retirement age. It is noteworthy that at least one other employee had been employed when already over the age of 60.'"
"[I]t is not possible to contend that there is a class of one and that the dismissed employee's contractual age constitutes the normal retiring age. The proper analysis is that since there are no comparators there is no normal retiring age at all and it is necessary to fall back on pensionable age. There are no other employees in the same position as the applicant. This approach is also supported by the decision of the Court of Appeal in Patel -v- Nagesan …"
It was this passage which appears to have misled the EAT in Dormers Wells Infant School -v- Gill: certainly that decision contains no reasoning of its own and simply applies Hines.
"We accept that the Court of Appeal's decision proceeded on the basis that Mrs Nagesan was in a unique position, in respect of which no comparators were available, for the purpose of identifying a normal retiring age. But she did not have a contract which provided for a specific retiring age, and so the court did not have to decide, nor did it decide, the point arising in the present case: namely, is the 'normal retiring age' of an employee who has a unique position capable of being the retiring age provided for in his contract of employment."
"If, for example, Mr Wall had been one of a group of two employees, both in a like position, and both with a contractual retirement age of 70, it seem to us clear that he would be entitled to bring his unfair dismissal claim. But BCAS's proposition is that the legislation positively discriminates against Mr Wall from being able to do so because he is in a class of one rather than two."
Lord Justice Scott Baker:
"… where there is a contractual retiring age, applicable to all, or nearly all, the employees holding the position which the appellant employees held, there is a presumption that the contractual retiring age is the normal retiring age for the group."
But, like all presumptions, it could be rebutted by evidence.
Mr Justice Evans-Lombe:
"109 Upper Age Limit
(1) Section 94 [the right not to be unfairly dismissed] does not apply to the dismissal of an employee if on or before the effective date of termination he has attained –
(a) In a case where(i) In the undertaking in which the employee was employed there was a normal retiring age for an employee holding the position held by the employee, and(ii) The age was the same whether the employee holding that position was a man or a woman,that normal retiring age, and(b) In any other case, the age of 65."
i) The word "normal" requires the presence of a norm. The dictionary definition of the word "normal" is "constituting, conforming to, not deviating from the common type or standard" and that of "norm" is "a standard, model, pattern type" see OED 2nd Ed.
ii) To have a norm there must be at least one and probably more models or patterns to comprise it and with which the example to be described as "normal" must be compared and found to conform with.
iii) The unique contractual right of an employee to retire on a certain date cannot, by itself, create such a norm. I do not accept that the presence of another employee in the same "position" [see the definition of that word in section 235(1) of the 1996 Act] would necessarily create such a norm without more. I do accept, in the present case, that were it possible to show that predecessors of Mr Wall, being previous directors general enjoyed the benefit of the same terms and conditions of employment as Mr Wall, such might provide the necessary models or comparators to create the necessary norm. However in the absence of such comparators Mr Wall cannot have a "normal retiring age" in respect of his employment by BCAS because he can only retire once. Mr Wall's contractual retiring age of 70 is his retiring age not his normal retiring age.
iv) In my view if you asked a reasonable bystander, knowing the contents of Mr Wall's presumed employment contract, what the normal retirement age of someone in the position of Mr Wall was, he would probably answer 65 because that is the State Pensionable age and the age at which most people retire. He would describe Mr Wall's position by reason of his contractual retirement age of 70 as exceptional.
v) With great respect, the fact that it may be "normal" not to compulsorily retire an employee who has not reached his contractual retirement age does not mean that that retirement age was his "normal retiring age." It means that it is not normal to act in breach of contract.
vi) To bring a unique employee with a specially long retirement date within the words "normal retiring age" contained in the sub-section requires that section to be read as if the word "normal" did not appear or gives that word a strained meaning. As Lord Salmon said in Nothman's case, passim at page 72B "it is well settled that in the absence of clear authority, it is wrong to read into a statute words which are not there." I would add "and to omit words which are there." Such necessity would only arise if it were possible to discern in s109(1), taken in the context of the Act as a whole, a statutory purpose which requires such treatment. Such treatment is plainly not within the statutory purpose found by Lord Fraser. Given the ability of the unique employee to obtain relief at common law, I am not able to discern any other statutory purpose which requires such treatment. With respect the policy suggested by Rimer J as the policy of s109(1), is insufficient for the purpose because it begs the question whether the employee concerned has a normal retiring age.
"It is not possible to contend that there is a class of one and that the dismissed employee's contractual age constitutes the normal retiring age. The proper analysis is that since there are no comparators there is no normal retiring age at all and it is necessary to fall back on pensionable age. There are no other employees in the same position as the applicant."