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You are here: BAILII >> Databases >> United Kingdom Employment Appeal Tribunal >> Hamam v British Embassy in Cairo & Anor (JURISDICTIONAL / TIME POINTS) [2020] UKEAT 0123_19_2401 (24 January 2020) URL: http://www.bailii.org/uk/cases/UKEAT/2020/0123_19_2401.html Cite as: [2020] UKEAT 123_19_2401, [2020] IRLR 574, [2020] UKEAT 0123_19_2401 |
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At the Tribunal | |
Before
THE HONOURABLE MR JUSTICE LAVENDER
(SITTING ALONE)
APPELLANT | |
2) FOREIGN AND COMMONWEALTH OFFICE |
RESPONDENT |
Transcript of Proceedings
JUDGMENT
For the Appellant | MS HALA HAMAM (The Appellant in Person) |
For the Respondent | MS CATHERINE CALLAGHAN (One of Her Majesty's Counsel)) INSTRUCTED BY: Government Legal Department Employment Group E3 102 Petty France Westminster London SW1H 9LG |
SUMMARY
JURISDICTIONAL / TIME POINTS
The Employment Tribunal was right to find that it did not have jurisdiction over claims for unfair dismissal, racial discrimination, victimisation and detriment resulting from a protected disclosure brought by an Egyptian national who had been employed as a Vice Consul in the British Embassy in Cairo. She contended that the ET had jurisdiction because she worked in a "British enclave", but that label was not determinative of, and indeed was not relevant to, the "sufficient connection question" (as it was termed by Underhill LJ in Jeffery v British Council [2019] ICR 929). The ET's decision was neither perverse nor irrational and it correctly applied the law as stated by Baroness Hale in Duncombe v Secretary of State for Children, Schools and Families [2011] ICR 1312:
"The principle appears to be that the employment must have much stronger connections both with Great Britain and with British employment law than with any other system of law."
THE HONOURABLE MR JUSTICE LAVENDER
(a) Recruitment. The Claimant was recruited in Egypt and the recruitment process was run from Cairo.
(b) Place of work. The Claimant worked predominantly and permanently in Cairo. She also worked on one or more occasions for a week in Dubai.
(c) The location of her home. This was in Egypt.
(d) Where her line management and HR support services were situated. Her line manager was based in Cairo, although he travelled regularly to the other countries which he managed. He was supported by HR hubs and/or the Arabic-speaking service supplied by corporate services. The Claimant was not managed from London, although she received occasional instructions or requests from different departments based in London.
(e) Her pay. She was paid in Egyptian pounds or to avoid the financial hardship caused by the devaluation of the Egyptian currency, US dollars, in each case paid into her Egyptian bank account.
(f) The benefits for which she was eligible. In particular, she was not entitled to join the civil service pension scheme.
(g) Her eligibility to join a union. She could and did join the local staff association, but she was not entitled to join the UK civil service union.
(h) Any mobility clause. She had none.
(i) The governing law of her contract. This is by implication Egyptian law.
(j) Taxation. The Claimant paid Egyptian taxes and no UK taxes or national insurance.
(k) Security status. The Claimant was vetted to the same standard as all local staff. She did not have access to all areas in the embassy. She did not sign the Official Secrets Act.
(l) Training given. The Claimant attended more than one course in the UK. She also attended consulate conferences in other Middle East countries.
(m) The redundancy payment and process followed. This was in accordance with local law and paid in Egyptian pounds by wire transfer into the Claimant's Egyptian bank account, financed from the Middle East and North Africa budget. The decision to make the Claimant redundant was made by Mr Neil and Mr Smith, the Consular Regional Operations Manager for the Levant and approved by the Consular Regional Director in Muscat. Advice was taken from the HR hub in Abu Dhabi.
(n) Disciplinary and grievance issues. Any such issues would normally be expected to be dealt with locally rather than from London.
(o) Holiday entitlement. The Claimant received time off to recognise Egyptian public holidays as well as those in the UK and after five years was entitled to pilgrimage leave. Leave allocation did not appear to be consistent with the UK, i.e., the Working Time Regulations and the prohibition of age discrimination.
(p) Whether the Claimant worked within what might properly be described as a British enclave. … [I will come back to this factor.]
(q) The application of local law. The Claimant invoked Egyptian labour law when a probation period was proposed. The Respondents' Charter of Principles for Local Staff specifically referred to local law and the practice of other good employers. The Claimant's redundancy payment was calculated in line with Egyptian law.
(r) Where the Claimant lodged her whistleblowing complaint. She addressed this complaint to London and chased London for a response. She was not redirected nor was it suggested that she should have raised the matter locally.
(s) The Claimant's nationality. She is, as I have said, Egyptian.
1) The ET erred in law when determining whether it had jurisdiction and that it failed to apply or properly apply the test or principles set out in Lawson v Serco [2006] UKHL 3 and Ravat v Halliburton Manufacturing and Services Limited [2012] UKSC 1 and consider or properly and fully consider;
1.1) Whether the British Embassy in Cairo amounted for practical purposes to or was an extra territorial British enclave and/or a political or social British enclave abroad;
1.1.1) Taking account of the nature and functionality of the British Embassy in Cairo, in particular against and in the light of the articles and provisions of the Vienna Convention on Diplomatic Relations 1961 and the Vienna Convention on Consular Relations 1963 ("the Conventions") and its inviolate status and;
1.1.2) My role is limited in its consideration to the evidence and analysis that British workers do not live on the embassy grounds and the British flag flies over it;
1.2) Whether the Claimant was an employee of a British employer operating within what was in effect an extra territorial enclave in a foreign country considering;
1.2.1) The nature, role and functions of the embassy, in particular against and in light of the articles and provisions of the Conventions;
1.2.2) The nature, role and functions of the Claimant's in her work for the Respondents, in particular against and in light of the articles and provisions of the Conventions;
1.2.3) The connection of the Claimant's employment relationship with Great British and British employment law after and in light of the determination on whether the embassy was a British enclave and/or having made that determination in light of the state and diplomatic immunity that the Respondents have in respect of any claim brought by the Claimant against them in Egypt in respect of the matters which are the subject of this claim;
1.3) The connection of the Claimant's employment relationship with Great Britain and British employment law in light of the matters set out in paragraphs 1.2.1 to 1.2.3 above.
Ground 2 of the ET's Decisions that the embassy was not a British enclave and/or that the connection of the Claimant's employment relationship with Great Britain and British employment law was not stronger than it was with any other system of law were not supported by the evidence and/or were irrational and perverse.
"(1) As originally enacted, section 196 of the Employment Rights Act 1996 contained provisions governing the application of the Act to employment outside Great Britain. That section was repealed by the Employment Relations Act 1999. Since then the Act has contained no express provision about the territorial reach of the rights and obligations which it enacts (in the case of unfair dismissal, by section 94 (1) of the Act); nor is there any such provision in the Equality Act 2010.
(2) The House of Lords held in Lawson that it was in those circumstances necessary to infer what principles Parliament must have intended should be applied to ascertain the applicability of the Act in the cases where an employee works overseas.
(3) In the generality of cases Parliament can be taken to have intended that an expatriate worker – that is, someone who lives and works in a particular foreign country, even if they are British and working for a British employer – will be subject to the employment law of the country where he or she works rather than the law of Great Britain, so that they will not enjoy the protection of the 1996 or 2010 Acts. This is referred to in the subsequent case-law as "the territorial pull of the place of work". (This does not apply to peripatetic workers, to whom it can be inferred that Parliament intended the Act to apply if they are based in Great Britain.)
(4) However, there will be exceptional cases where there are factors connecting the employment to Great Britain, and British employment law,1 which pull sufficiently strongly in the opposite direction to overcome the territorial pull of the place of work and justify the conclusion that Parliament must have intended the employment to be governed by British employment legislation. I will refer to the question whether that is so in any given case as "the sufficient connection question".
(5) In Lawson Lord Hoffmann, with whose opinion the other members of the Appellate Committee agreed, identified two particular kinds of case (apart from that of the peripatetic worker) where the employee worked abroad but where there might be a sufficient connection with Great Britain to overcome the territorial pull of the place of work, namely (a) where he or she has been posted abroad by a British employer for the purposes of a business conducted in Great Britain (sometimes called "the posted worker exception") and (b) where he or she works in a "British enclave" abroad. But the decisions of the Supreme Court in Duncombe and Ravat made it clear that the correct approach was not to treat those as fixed categories of exception, or as the only categories, but simply as examples. In each case what is required is to compare and evaluate the strength of the competing connections with the place of work on the one hand and with Great Britain on the other.
(6) In the case of a worker who is "truly expatriate", in the sense that he or she both lives and works abroad (as opposed, for example, to a "commuting expatriate", which is what Ravat was concerned with), the factors connecting the employment with Great Britain and British employment law will have to be specially strong to overcome the territorial pull of the place of work. There have, however, been such cases, including the case of British employees of government/EU-funded international schools considered in Duncombe.
(7) The same principles have been held by this Court to apply to the territorial reach of the 2010 Act: see R (Hottak) v Secretary of State for Foreign and Commonwealth Affairs [2016] EWCA Civ 438, [2016] ICR 975."
"Another example is an expatriate employee of a British employer who is operating within what amounts for practical purposes to an extraterritorial British enclave in a foreign country. This was the position of Mr Botham working in a military base in Germany. And I think, although the case is not quite so strong, that the same is true of Mr Lawson at the RAF base on Ascension Island. While it is true that Mr Lawson was there in a support role, employed by a private firm to provide security on the base, I think it would be unrealistic to regard him as having taken up employment in a foreign community in the same way as if Serco Ltd were providing security services for a hospital in Berlin. I have no doubt that Bryant v Foreign and Commonwealth Office [2003] UKEAT 174, in which it was held that section 94(1) did not apply to a British national locally engaged to work in the British Embassy in Rome, was rightly decided. But on Ascension there was no local community. In practice, as opposed to constitutional theory, the base was a British outpost in the South Atlantic. Although there was a local system of law, the connection between the employment relationship and the United Kingdom were overwhelmingly stronger."
"(1) She was engaged and employed at all times outside the United Kingdom;
(2) Her post did not involve reporting back to or taking instructions from the Respondent's offices in the United Kingdom;
(3) Her duties were carried out entirely in Italy;
(4) She was paid at local rates, and employed on local terms and conditions;
(5) Her employment was subject to Italian law."
(1) Mr Botham worked in a military base in Germany. He was regarded by Lord Hoffmann as working in a British enclave.
(2) Mr Lawson worked as a security supervisor at a military base on Ascension Island. However, he was not employed by the Ministry of Defence, but by a private contractor. There was no local community. The implication of Lord Hoffmann's speech is that, had there been a local community, he would have been regarded as part of that, rather than as part of a British enclave.
(3) In Ministry of Defence v Wallis [2011] ICR 617 the Claimants were the wives of British servicemen posted to NATO organisations in Belgium and the Netherlands and were employed by the Ministry of Defence in the British section of the international schools which were part of the NATO headquarters. The Court of Appeal upheld the decision that they were within the scope of Section 94(1) of the ERA. Elias LJ described them as the spouses of persons who formed part of a British contingent working in an international enclave.
(4) In Duncombe v Secretary of State for Children, Schools and Families [2011] ICR 1312 the Claimant worked as a teacher at a school in Germany for the children of parents working for the European institutions. The Supreme Court held that he fell within the scope of Section 94(1). In giving the judgment of the court, Baroness Hale said in paragraph 16 that teachers such as Mr Duncombe:
"were employed in international enclaves, having no particular connection with the countries in which they happened to be situated and governed by international agreements between the participating states."
(5) In R (Hottak) v Secretary of State for Foreign and Commonwealth Affairs [2016] ICR 975 the Claimants were Afghan nationals employed by the British government as interpreters for the British forces working in and from a British military base or bases in Afghanistan and also carrying out frontline duties. In paragraph 54 of his judgment, Sir Colin Rimer accepted that they worked in what might be regarded as British enclaves. (At one stage, the Claimant submitted that Sir Colin Rimer was saying that the British Embassy at Kabul constituted as a British enclave, but she withdrew that submission.)
"135. For my part I do not find it altogether easy to reconcile the statement by Lord Hoffmann in paragraph 30 of Lawson v Serco [2006] ICR 250 that the question, whether on given facts a case falls within the territorial scope of section 94(1) of the 1999 Act, should be treated as a question of law with the statement by Lord Hope in Ravat v Halliburton [2012] ICR 389 at 400 C-E that the question, whether the connection between the circumstances of an employee's employment and Great Britain is sufficiently strong to enable it to be said that it is appropriate for the employee to have a claim for unfair dismissal, is a question of fact. It is most unlikely that Lord Hope intended to disagree with Lord Hoffmann on the matter.
136. The differing approaches can, in my view, be reconciled on the basis that the decision on the question whether the connection is sufficiently strong is an evaluative judgment to be made on the basis of the underlying facts (as to which there will often be no dispute). That is, strictly speaking, a question of law but it is well settled that an appellate tribunal will not interfere with a first instance evaluative judgment of this kind unless that tribunal took into account matters it should not have taken into account or failed to take into account matters it should have taken into account or made some error or was otherwise wrong…."
"Although the First Respondent is considered 'inviolable' (in the sense that nationals of the host state cannot enter without invitation), it is part of the local community and has as its objective the representation of the UK's interests and building and improving relations with the host country. It pays local taxes and social insurance for its locally engaged staff."
"Mr Neil explained that the embassy, like all embassies, is inviolable in that the building and grounds are not open for 'just anyone' to walk into; even the Egyptian police are not permitted into the compound or to enter buildings, and Egyptian officials need an invitation to do so."
"Ms Marriot drew the distinction between: the Claimant's entitlement to allowances and benefits (including pension) and that offered to UK-based staff; accreditation at the post for the Claimant (again, by contrast to UK-based staff); and security clearance levels including access to zones within the post. She asserted that the British Embassy in Cairo is not a 'British enclave' that has no connection to the local community, but is instead a place to develop and improve links for a number of issues between Britain and the host country."
"Dealing with the question of whether the mission is an 'enclave', Ms Marriot said that the embassy offices are in a garden city. The diplomats live in Zamalek, which is close by, and Maadi, which is further out and closer to the international schools. Nobody lives in the compound."
"Of course, I heard no evidence from the Claimant on this, but she did not challenge Ms Marriot's analysis that the British workers abroad do not live on the embassy grounds but in the Cairo suburbs, unlike (say) a military base, where the workers tend to live in a community that retains its essentially British feel (e.g. British schools, supermarkets etc). I accept that the British flag flies above the Embassy. It does not, without more, mean that it is a British enclave in the Lord Hoffmann sense;"
"This Claimant did not work for a commercial employer but for the British government, but in my view, although that is of course a very close connection indeed with the United Kingdom, that is the only element on which she can argue she should have the benefit of UK law."
"It is therefore clear that the right will only exceptionally cover employees who are working or based abroad. The principle appears to be that the employment must have much stronger connections both with Great Britain and with British employment law than with any other system of law. There is no hard and fast rule and it is a mistake to try and torture the circumstances of one employment to make it fit one of the examples given, for they are merely examples of the application of the general principle."
"In the first place, I do not think that in the light of the post-Lawson case-law it is right to conduct the analysis by reference to labels such as 'the posted workers exception', useful as they may be as shorthands. The correct approach is explicitly to address the sufficient connection question, as the ET did here. Lord Hoffmann's statement that the 1996 Act applies to workers of the kind identified at para. 38 of his opinion establishes that in such a case the connection with Great Britain will typically overcome the territorial pull of the place of work, but his observations are in fairly general language and are not a substitute for a careful examination of the facts of the particular case: the developing case-law has shown a number of different factual circumstances that do not fall neatly into Lord Hoffmann's exceptions."