ON APPEAL FROM THE EMPLOYMENT APPEAL TRIBUNAL
THE HON MR JUSTICE UNDERHILL (PRESIDENT)
UKEAT/0206/09/SM
Strand, London, WC2A 2LL |
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B e f o r e :
LORD JUSTICE HOOPER
and
LORD JUSTICE PITCHFORD
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MR MICHAEL LEACH |
Appellant |
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- and - |
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THE OFFICE OF COMMUNICATIONS (OFCOM) |
Respondent |
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MR THOMAS LINDEN QC (instructed by Allen & Overy LLP) for the Respondent
Hearing date: 10th May 2012
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Crown Copyright ©
Lord Justice Mummery:
Introduction
Background facts
"If it emerged that we were employing someone who we knew had visited a brothel in Cambodia that employs children then this would become a major news story. It would potentially cause serious damage to [the Respondent's] reputation…"
"As we discussed at the meeting, the Metropolitan Police have provided us with a limited disclosure in which they informed [the Respondent] that they consider you to pose an ongoing threat to children. This information has led to a breakdown in the relationship of trust and confidence which is a fundamental part of your employment contract with [the Respondent]. As a result of this breakdown, [the Respondent] has decided to terminate your employment with immediate effect. You are not entitled to any period of notice or payment in lieu of notice."
ET judgment
"77. … due to the information provided to the Respondent by the CAIC, there had been a breakdown of mutual trust and confidence between the Respondent and the Claimant.
78. The Respondent had received information from the CAIC. The Respondent pressed the matter with the CAIC, both when it was first raised and again during the appeal process. The Respondent balanced the CAIC information against the Claimant's explanations and considered that it could not ignore the CAIC disclosure. The reason for the dismissal was made clear in the dismissal letter."
"102. The CAIC approach places employers and employees in a difficult position, by simply providing information relating to an employee without making significant corroborative material available, although the Tribunal recognises and understands the necessity for the CAIC to preserve the integrity of its information."
EAT judgment
"48. We have found this a worrying case. It is not our role, and we are in no position, to make a judgment as to whether the Claimant has committed offences against children. The Metropolitan Police clearly believe he has, and it would, or in any event, should, not have formed that belief without reliable information. But it is only fair to record that the Claimant has been (in effect) acquitted in the only proceedings brought against him; and he has….produced apparently powerful statements in support of his innocence. If he is indeed innocent, he has suffered a very grave injustice. But the risk of injustice is inherent in a system where the police are permitted to make apparently authoritative "disclosures" of the kind made here, unsupported by any finding of a court; and it will no doubt be said that the risk is the price that has to be paid for achieving the protection of children. In any event, as we have already emphasised, the question for the Employment Tribunal was not, as such, whether the Claimant has suffered an injustice but whether the conduct of the respondent towards him was fair. If he was treated unfairly by CAIC, his remedy is against them."
"27. …It sticks in the throat that an employee may lose his job, or perhaps in practice any chance of obtaining further employment, on the basis of allegations which he has had no opportunity to challenge in any court of law-or may indeed have successfully challenged. On the other hand, it has to be recognised that there are cases where it is necessary for employers to be warned of facts which indicate that an employee (or potential employee) is a risk to children, even in the absence of any conviction. The courts have had to grapple in a number of cases with how the balance should be struck…"
"28. In our judgment an employer who receives information from CAIC or a similar body, under an official disclosure regime, that an employee poses a risk to children must, in principle and subject to certain safeguards, be entitled to treat that information as reliable….In our view it is plain that an employer in such a case cannot be expected to carry out his own independent investigation in order to test the reliability of the information provided by a responsible public authority. He will typically have neither the expertise nor the resources to do so."
"31. …We have already observed that we do not regard the language as helpful. We have observed a growing trend among parties to employment litigation to regard the invocation of "loss of trust and confidence" as an automatic solvent of obligations: it is not. In the present case it is necessary to identify more particularly why CAIC's disclosure is said to have, in effect, made it impossible for the Respondent to continue to employ the Claimant.
32. Unfortunately this question is not explicitly considered by the Tribunal. The nearest that it comes to it is the finding in para.108 that dismissal was reasonable "given the nature of the Respondent's organisation, the nature of the allegations, and the nature of the Claimant's role." That is decidedly summary. But its brevity appears to reflect the way the case was argued before the Tribunal…."
"33. The question thus is whether the risk of such reputational damage was a sufficient justification for the dismissal of an employee against whom nothing had in fact been proved. We do not find that question particularly comfortable. In a case of this kind, not only is it not established that the employee is in fact a danger to children, but, even if he is, the dismissal will not significantly reduce the risk of his offending (since opportunities for offending are not afforded by the employee's job), but is concerned solely with saving the employer's reputation. That is much less evidently justifiable. Nevertheless, after careful reflection, we have come to the conclusion that, in the circumstances of the present case, the Tribunal was entitled to regard the dismissal of the Claimant as justified. It was in our view legitimate for the Respondent, in its particular position, to be jealous of its public reputation. It was entitled to take the view that to continue to employ, in the position in question, a person who it had been officially notified was a child sex offender and a continuing risk to children, would-if he were subsequently exposed (which it was plainly reasonable to anticipate)-severely shake public confidence in it. We are acutely aware, as was the Tribunal, that to justify the Claimant's dismissal on the basis of reputational risk in the absence of any established misconduct may involve a grave injustice to him. But it is essential to bear in mind that under s.98 the central question is what it was reasonable for the employer, in the relevant circumstances to do. If the Claimant is in fact innocent, the injustice has been caused not by the employer but by those who have falsely accused him and by CAIC which has given credence to those accusations …."
Claimant's submissions
(1) It was unprecedented for someone to be dismissed from a job not involving children for alleged, but unproven, offences. He had been dismissed for a possible imagined unproven risk that had nothing to do with protecting children. The EAT had erred in law in holding that an employer was entitled to treat the information supplied it as reliable and to dismiss him in order to avoid potential reputational damage, even when he did not work with children.
(2) As for the reputational risk to the Respondent, nothing he said at the disciplinary internal hearing would have made any difference, so that it was impossible for him to have a fair hearing of the allegations against him.
(3) The EAT made error of law in the conclusions that they drew from the authorities cited by him.
(4) The dismissal would restrict his prospects of future employment, which was relevant to his claim for breach of Article 8 of the European Convention.
Discussion and conclusions
Unfair dismissal
Wrongful dismissal
Human rights points
Result
Lord Justice Hooper:
Lord Justice Pitchford: