[Home] [Databases] [World Law] [Multidatabase Search] [Help] [Feedback] | ||
United Kingdom Employment Appeal Tribunal |
||
You are here: BAILII >> Databases >> United Kingdom Employment Appeal Tribunal >> Nunn v Royal Mail Group Ltd [2010] UKEAT 0530_09_2710 (27 October 2010) URL: http://www.bailii.org/uk/cases/UKEAT/2010/0530_09_2710.html Cite as: [2011] ICR 162, [2010] UKEAT 530_9_2710, [2010] UKEAT 0530_09_2710 |
[New search] [Printable RTF version] [Buy ICLR report: [2011] ICR 162] [Help]
At the Tribunal | |
On 6 September 2010 | |
Before
HIS HONOUR JUDGE ANSELL
MR M CLANCY
MR I EZEKIEL
APPELLANT | |
RESPONDENT |
Transcript of Proceedings
JUDGMENT
For the Appellant | MR RICHARD O'DAIR (of Counsel) Instructed by: Messrs Hewetts Solicitors 55-57 London Street Reading RG1 4PS |
For the Respondent | MR SIMON GORTON (of Counsel) Instructed by: Messrs Weightmans LLP India Building Water Street Liverpool L2 0GA |
SUMMARY
UNFAIR DISMISSAL – Reason for dismissal including substantial other reason
Consideration of how a Tribunal should approach competing reasons for dismissal.
HIS HONOUR JUDGE ANSELL
Introduction
The Facts
"Suspended dismissal - the period should be clearly specified in the range of 3 months to 2 years, with it clearly set out that any further serious breach of the Conduct Code during that time could automatically result in dismissal. The normal procedures would apply in establishing whether any further breach had occurred, and the individual would be given clear notice in the subsequent call to a discipline hearing that dismissal was a possibility.
Reduction in pay - this means reducing pay to its position before the most recent increment or annual review. Reduction in pay may lead to loss of earnings and pension entitlement and full account should be taken of any personal hardship before it is imposed.
Downgrading - this should be reserved for the most serious cases not involving dismissal."
"I am aware that Mr Alistair Wood has now concluded your grievance in relation to unlawful deduction of wages, breach of contract and discrimination, and that he has not upheld your grievance.
In the light of your grievance it is clear that you do not accept my disciplinary decision to downgrade you and reduce your pay following the Conduct Code case.
If you continue to refuse to accept the downgrade and reduction in pay, I will need to consider alternative disciplinary penalties under Royal Mail's Conduct Code.
In view of the seriousness of the Conduct Code case and the penalty, which constituted action just short of dismissal, you should be aware that if you continue to refuse to accept the downgrade and reduction in pay one possible outcome could be your dismissal."
"Mr Nunn appealed and his appeal was heard by Mr Jenkins and rejected."
The Tribunal's conclusions in relation to the reasons for dismissal were set out in paragraphs 17 to 19 of the Tribunal decision as follows:
"17. There is one overriding factor which the Tribunal must determine and that is what was the reason for Mr Nunn's dismissal? It has already been mentioned above that the parties were offering different reason. Logically had Mr Nunn accepted the decision after the completion of the appeal process then in all probability he would still be employed by Royal Mail. The Tribunal is satisfied that logically the only reason for the dismissal was the failure of Mr Nunn to accept the sanction imposed by Mr Willis of demotion.
18. The reason for coming to this conclusion is firstly the logic as stated above but also because Mr Nunn had placed Mr Willis and the Respondent in an impossible situation. By consistently refusing to accept the sanction the only possible outcomes other than dismissal were that he should be reinstated, which was wholly unrealistic, or that he should continue to be found some kind of work which would justify paying him at his original pay rate which the Respondent's had to some extent done during the course of the appeal and grievance proceedings. The only direction in which Mr Willis could reasonably be expected to go was to dismissal.
19. There are claims under Section 103 and 104 of the Employment Rights Act arising out of the proceedings brought in the Employment Tribunal with regard to unlawful deduction from wages and it was argued forcibly on the part of the Claimant that it was the bringing of these proceedings which was the cause of the dismissal. The Claimant's representative prayed in aid the way in which the grievance hearing, which had stuttered along for at least five months, suddenly came to fruition when the pre-hearing review was imminent in the Employment Tribunal proceedings. Mr Willis was challenged as to his knowledge of what was happening in the Employment Tribunal and he told the Tribunal that he had no knowledge of these proceedings at all, nobody had discussed them with him and nobody had sought his advice. Mr O'Dair on behalf of the Claimant challenged that evidence and contended that there must be some documentation which would support his client's allegation which had not been produced by the Respondent. Apart from the delay and sudden completion of the grievance procedure there was, however, no evidence to contradict Mr Willis and in so far as additional documentation was concerned it did not appear that the Claimant's representatives had raised this with the Respondent during the disclosure process nor had pursued the lack of any documentation through the Tribunal procedures. In those circumstances the Tribunal must accept the evidence of Mr Willis that he had no knowledge and in those circumstances, supported by the inevitability of the situation which arose the Tribunal is satisfied that neither a public interest disclosure nor the assertion of statutory right was the reason or the principle reason for Mr Nunn's dismissal."
"29. Faced by a conclusion that Mr Nunn had not been honest and the necessity for managers to evince integrity in the course of their work Mr Willis took the view that a serious sanction was required and that dismissal would have been justified but for the Claimant's length of service and clean record. He therefore decided upon demotion.
The Tribunal considered whether this decision was so unreasonable as to irrevocably damage the procedure leading up to the eventual dismissal of the Claimant for some other substantial reason. The Tribunal found that if it were facing this decision in terms of a misconduct dismissal they would have found that, although severe, it fell within the band of reasonable responses.
30. The position therefore is, bearing in mind that it is not for the Tribunal to substitute its own decision where the course of action taken by the Respondent's representative both with regard to the disciplinary procedure and the sanction would fall within the band of reasonable responses the Tribunal cannot find the conduct of the Respondent in the course of the disciplinary procedure, including the appeal against the original misconduct finding, to be so fundamentally wrong that it should be brought into account in determining whether the final dismissal was fair and reasonable in all the circumstances. The Tribunal take the view that they would, had they been dealing with this as a misconduct matter have found it to be fair and therefore even allowing that the level of proof falling upon the Respondent may be lower in respect of the earlier proceedings where they are not doing more than contributing to the reason for dismissal the Tribunal is satisfied that the dismissal itself was fair and the claim is dismissed."
The Appellant's case
"52. Thirdly, the unfair dismissal provisions, including the protected disclosure provisions, pre-suppose that, in order to establish unfair dismissal, it is necessary for the tribunal to identify only one reason or one principal reason for the dismissal.
53. Fourthly, the reason or principal reason for a dismissal is a question of fact for the tribunal. As such it is a matter of either direct evidence or of inference from primary facts established by evidence.
54. Fifthly, the reason for dismissal consists of a set of facts which operated on the mind of the employer when dismissing the employee. They are within the employer's knowledge.
55. Sixthly, the burden of proof issue must be kept in proper perspective. As was observed in Maund, when laying down the general approach to the burden of proof in the case of rival reasons for unfair dismissal, only a small number of cases will in practice turn on the burden of proof.
56. I turn from those general comments to the special provisions in Part X of the 1996 Act about who has to show the reason or principal reason for the dismissal. There is specific provision requiring the employer to show the reason or principal reason for dismissal. The employer knows better than anyone else in the world why he dismissed the complainant. Thus, it was clearly for Roche to show that it had a reason for the dismissal of Dr Kuzel; that the reason was, as it asserted, a potentially fair one, in this case either misconduct or some other substantial reason; and to show that it was not some other reason. When Dr Kuzel contested the reasons put forward by Roche, there was no burden on her to disprove them, let alone positively prove a different reason.
57. I agree that when an employee positively asserts that there was a different and inadmissible reason for his dismissal, he must produce some evidence supporting the positive case, such as making protected disclosures. This does not mean, however, that, in order to succeed in an unfair dismissal claim, the employee has to discharge the burden of proving that the dismissal was for that different reason. It is sufficient for the employee to challenge the evidence produced by the employer to show the reason advanced by him for the dismissal and to produce some evidence of a different reason.
58. Having heard the evidence of both sides relating to the reason for dismissal it will then be for the tribunal to consider the evidence as a whole and to make findings of primary fact on the basis of direct evidence or by reasonable inferences from primary facts established by the evidence or not contested in the evidence.
59. The tribunal must then decide what was the reason or principal reason for the dismissal of the claimant on the basis that it was for the employer to show what the reason was. If the employer does not show to the satisfaction of the tribunal that the reason was what he asserted it was, it is open to the tribunal to find that the reason was what the employee asserted it was. But it is not correct to say, either as a matter of law or logic, that the tribunal must find that, if the reason was not that asserted by the employer, then it must have been for the reason asserted by the employee. That may often be the outcome in practice, but it is not necessarily so.
60. As it is a matter of fact, the identification of the reason or principal reason turns on direct evidence and permissible inferences from it. It may be open to the tribunal to find that, on a consideration of all the evidence in the particular case, the true reason for dismissal was not that advanced by either side. In brief, an employer may fail in its case of fair dismissal for an admissible reason, but that does not mean that the employer fails in disputing the case advanced by the employee on the basis of an automatically unfair dismissal on the basis of a different reason."
The Respondent's case
"First, the protected disclosure provisions must be construed and applied in the overall context of unfair dismissal law in Part X of the 1996 Act into which section 103A was inserted. Part X includes sections 94 to 134. There was a suggestion in argument before the appeal tribunal, which was not pursued in this court, that the burden of proof in protected disclosure cases should be the same as that applied in equivalent provisions governing discrimination cases. In those cases the burden of proving the reason for less favourable treatment of the claimant shifts to the respondent. Mr Linden argued for a "strictly limited" role for discrimination law in protected disclosure cases. The thinking behind the association of protected disclosure and discrimination is that both causes of action involve acts or omissions for a prohibited reason. Unfair dismissal and discrimination on specific prohibited grounds are, however, different causes of action. The statutory structure of the unfair dismissal legislation is so different from that of the discrimination legislation that an attempt at cross fertilisation or legal transplants runs a risk of complicating rather than clarifying the legal concepts. As Mr Linden accepted there simply is no need to resort to the discrimination legislation in order to ascertain the operation of the burden of proof in unfair dismissal cases."
and made the obvious point of distinction between discrimination and unfair dismissal for a prohibited reason such as whistle-blowing in a discrimination case is that the burden of proving a reason which determines the claim rests with the employer throughout, and never shifts, and, therefore, the basic justification for shifting the burden in discrimination cases is not applicable to unfair dismissal for prohibited reasons. He submitted that, apart from the Tribunal making the point about the obvious logic and deriving from the history of the case, at the end of the day, the decision about the reasons very much turned on the evidence of Mr Willis, and, as the Tribunal stated in paragraph 19, his evidence was challenged in relation to the coincidences as to timing and conflicts as to his knowledge, which Mr O'Dair repeated before us. He submitted that, at the end of the day, it was open to the Tribunal to accept Mr Willis' evidence as to the reason for dismissal, and that that decision could not be challenged on the grounds of perversity. In particular, the Tribunal were entitled to come to the conclusion that Mr Willis was not aware of the Tribunal proceedings.
Conclusion
"In any other case where the employer has fulfilled the requirements of subsection (1), the determination of the question whether the dismissal is fair or unfair (having regard to the reason shown by the employer) —
(a) depends on whether in the circumstances (including the size and administrative resources of the employer's undertaking) the employer acted reasonably or unreasonably in treating it as a sufficient reason for dismissing the employee, and
(b) shall be determined in accordance with equity and the substantial merits of the case."
"…and therefore even allowing that the level of proof falling upon the Respondent may be lower in respect of the earlier proceedings where they are not doing more than contributing to the reason for dismissal the Tribunal is satisfied that the dismissal itself was fair and the claim is dismissed."
Mr O'Dair criticised this last passage in relation to the Tribunal's possibly adopting a less stringent approach in relation to fairness in connection with the earlier history and argued that, since there was no contractual power to demote for disciplinary misconduct, Mr Willis' decision to demote was, effectively, a decision to dismiss and offer re-engagement. Mr Gorton argued that it was not, in fact, necessary for the Tribunal to deal with the previous year's events in the way that they did. In particular, he contended that the Tribunal's jurisdiction to consider the circumstances in relation to the previous year did not arise since there was no dismissal, making clear that the issue of fairness or unfairness is in relation to the reasons shown by the employer. Secondly, he contended that paragraph 30 of the decision did not mean that they had applied a lesser test to the demotion process than they did to the dismissal process, and indeed found that the treatment of the Appellant was within the band of reasonable responses. He contended that all the Tribunal meant was, acknowledging that the demotion was not the dismissal, the Tribunal could not approach the case as if it were. Indeed, he argued that the Tribunal's role ought to have been confined to the issue of a fair reason and the genuineness of that fair reason, as was set out by the EAT in Harper v National Coal Board [1980] IRLR260:
"But, if the employer can show that he had a fair reason in his mind at the time when he decided on dismissal, and that he genuinely believed it to be fair, this would bring the case within the category of another substantial reason."
"Such an appeal ought only to succeed where an overwhelming case is made out that the Employment Tribunal reached a decision which no reasonable tribunal, on a proper appreciation of the evidence and the law, would have reached."
For example, there is no evidence that the recall problems, which Dr Cubitt referred to in his letter of 20 March, affected the Appellant during the Steele interview on 6 December 2006. Secondly, that we are satisfied that Ms Rallison, in dealing with the appeal, had in mind the financial affect upon the Appellant and, indeed, reduced the period down to two years in line with the code of conduct. While she referred in particular to the two most serious allegations alleging dishonesty, it is clear from her report that she had in mind all five findings.