At the Tribunal | |
Before
HIS HONOUR JUDGE D PUGSLEY
MR A C BLYGHTON
MR J C SHRIGLEY
APPELLANT | |
RESPONDENT |
Transcript of Proceedings
JUDGMENT
Revised
For the Appellant | MR MACKRELL |
For the Respondent | MR MCKAY |
JUDGE D PUGSLEY: This is a case which has a substantial history. The proceedings began as long ago as 29th May 1996 when the Appellant, Mrs Woodgate, presented a Originating Application to the Employment Tribunal, complaining of constructive unfair dismissal, breach of contract and sexual harassment against her former employer, the Respondent's, Courage Ltd.
"That rehearing took place before an Employment Tribunal chaired by Mr S J W Scott on 9th-11th February 1998. By a decision with extended reasons dated 1st May 1998 her complaint of sex discrimination was upheld and an award of compensation in relation to that discrimination made. That aspect of the claim no longer concerns us. Secondly, the Scott tribunal again found she was not constructively dismissed by the respondent. Against that finding this second appeal is brought.
We return to the judgment which I gave on behalf of the EAT on 7th October 1997. The point on which the claim of constructive dismissal/breach of contract was remitted for rehearing was the first tribunal had failed to determine the effective date of termination of the contract of employment. There was issue between the parties as to the correct date. The appellant contended for 9th May 1996 and the respondent for the 12th June 1996. The materiality of the effective date of termination lay in the fact that between those dates certain events had occurred which might have a bearing on the question as to whether or not the respondent was in fundamental breach of the implied term of mutual trust and confidence.
In their extended reasons the Scott tribunal found that the effective date of termination was 10th May 1996, the date on which the appellant's letter of resignation was received by the respondent in the post. It follows that events after that date are immaterial to the question of repudiatory breach by the respondent.
At paragraph 27 of their reasons the Scott tribunal accepted the appellant's oral evidence that she resigned because the respondent's delay in dealing with her complaints contained in her letters dated 27th February and 23rd May 1996. At paragraph 30 the Tribunal found that there could be no complaint about the respondent's conduct prior to the 28th March 1996. Prior to that date Mr Jackson, director of the respondent whom the tribunal found to be an impressive witness, had held two meetings with the appellant and her father, who has represented her throughout. At the meeting on 13th March Mr Jackson said he would carry out a full investigation into allegations made in the appellant's letter of 27th February. At a further meeting held on 25th March Mr Jackson went through all the points raised in that letter.
However, on 28th March Mr Jackson fell ill and was away from work for a month. Thereafter, the tribunal found, the handling of the matter by the respondent was unsatisfactory. They considered that when Mr Jackson's illness became protracted another person ought to have been appointed in his place. The respondent through its consultant, Mr Jennings, wrote a mistaken and misleading letter to the appellant on the 11th April. On 29th April Mr Jackson returned to work and completed his enquiries within five working days, but was at fault, so the tribunal found, in not contacting the appellant immediately on his return. In the event, the appellant heard nothing from the respondent between the 12th April and 9th May for which the Tribunal found was unreasonable.
On 9th May she tendered her resignation as a result of the respondent's delay in completing their investigation into her complaints.
The tribunal asked themselves whether the facts amounted to a breach of the implied term of mutual trust and confidence. They directed themselves that the fact that the respondent acted unreasonably towards the appellant did not determine the matter since there is no implied contractual term that the employer will treat an employee in a reasonable manner.
Pausing there, it is correct to say there is no such general implied term. Nor is the reasonableness of the employers' behaviour the correct test for determining whether an employee has been constructively dismissed. However, we specifically drew attention in our judgment of 7th October 1997 (Transcript page 13D) to the decision of the EAT in W A Gould (Pearmak) Ltd v McConnell [1995] IRLR 516, in which Morrison pointed out that there is to be implied into a contract of employment a term that the employer will reasonably and promptly afford a reasonable opportunity to their employees to obtain redress of any grievance they may have.
In the present case, the Scott tribunal at paragraph 29 of their reasons rejected the appellant's submission that the issue was a failure by the respondents to properly carry out an investigation of her "grievances" on the basis, first that she did not submit a formal grievance and secondly, that the primary purpose of the respondent's enquiries was not the investigation of the appellant's complaints or grievances but rather to consider whether the appellant had a case to support her application for a transfer to a new job.
It is here we think the Employment Tribunal arguably fell into error. The tribunal found that the reason for the appellant's resignation was the respondent's delay in dealing with her complaints set out in her letters of 27th February and 23rd March. Mr Jackson had, on the 13th March, promised to hold a full investigation into allegations made in letter of 27th February. In that letter she made it clear that the reason why she wanted a transfer was to get away from the bullying and harassment which she alleged she was receiving from her then supervisor, Mandy Evans. Whether it was a formal grievance under the respondent's procedure is arguably nothing to the point. She raised complaints about her working conditions; the respondent promised to investigate them; they did not do so in a timely fashion on the tribunal's findings of fact.
It is in these circumstances that we shall allow the matter to proceed to a full appeal hearing, limited to the sole question whether the Employment Tribunal erred in law in failing properly to consider whether, on their own findings of fact, the respondent was in fundamental breach of the implied term of contract more particularly identified in McConnell.
For the purposes of that appeal, we formally record that the appellant withdraws her complaints regarding the conduct of the proceedings by the Scott Tribunal which have culminated in an exchange of correspondence between Mr Mackrell and the President of the Employment Tribunals, Judge John Prophet. Further and for the avoidance of doubt we strike out all other matters raised in the grounds of appeal set out in the Notice of Appeal limiting the point in the appeal to that which we have earlier identified.
We have before us an application for extracts from the Chairman's Notes of Evidence. Having considered that application the context of the sole point on which we have allowed the matter to proceed, we shall direct the Chairman, Mr Scott, be asked to provide notes of the evidence given by Mr Jackson in cross-examination relating to delays in his investigations between 4th March and 8th May 1996. Secondly, the evidence given by Mr Jackson in cross-examination regarding the extent of his investigations of the facts complained of by the appellant in her letter of 27th February and 23rd March 1996".
It is a tribute to the patience of the learned Judge that he has distilled the essential issue from a Notice of Appeal which runs for some 18 typed pages.
"It is plain from the judgment from the EAT on the 20th October 1998 that there is an arguable point of law which should be considered at the hearing. Whether the notes of evidence will be helpful at resolving that issue is another matter, but if the notes of evidence do need to be referred to it will be the Chairman's notes of evidence and nobody else's. Accordingly, this application must be refused, but I should say to Mr Mackrell that I am grateful to him for the pleasant and modest way in which he has put his submissions to me this morning".
"should not be used when separate procedures of discussion already exist"
"With the request that the Company consider her circumstances and transfers her to a new job in a different department. She suggested that returning to her current job may well result in further illness and depression due to attitude and actions of existing of staff within the telesales department. To that letter Mr Bracher replied by letter on 8th February 1996 explaining before they could consider a request for a job transfer they needed to understand more fully the reasons for her request. A meeting was suggested by Mr Bracher to be attended by the Applicant, Mr Bracher and Mr Jennings, the Respondent company's Human Resource Consultant".
"Further to our recent meeting I am writing to keep you updated on the current situation. Simon Jackson has unfortunately been absent due to illness and is currently now on holiday. We have therefore been unable to progress the matter further. Simon hopes to be back at work very shortly and at that time will be in contact with you".
By letter to the Applicant dated 8th May, received by her on 9th May, Mr Jackson informed her that his investigations were complete and he was now considering the outcome. He proposed three alternative appointments for a meeting, between the 20th and 22nd of May.
"It is quite apparent to me that the company is no longer interested in honouring its obligations to me as a responsible employer and I consider the duty of trust and confidence has been fundamentally breached".
"The Applicant's claim of unfair constructive dismissal is resisted by the Respondent on the groundthat the Applicant resigned voluntarily and that there was no dismissal. It is not submitted by the Respondent that, if there was a dismissal, it was a fair dismissal.
Section 95(1)(c) of the Employment Rights Act 1996 provides that an employee is dismissed by his employer if the employee terminates the contract under which he is employed (with or without notice) in circumstances in which he is entitled to terminate it without notice by reason of the employer's conduct.
In order to establish that there has been a constructive dismissal, the Applicant must first establish that there was a breach of contract on the part of the Respondent which was a fundamental breach, ie., a significant breach going to the root of the contract. It is necessary for her to show, therefore, that there has been a repudiatory breach of contract by the Respondent. The Applicant then needs to show that such breach or breaches of contract constituted the reason for her resignation.
Paragraph 12 of the Originating Application contains a series of assertions and allegations by the Applicant, but does not specify which of them specifically relate to the complaint of unfair constructive dismissal. Further, a number of these allegations have not substantiated by evidence presented by or on behalf of the Applicant at the hearing and the closing submissions made on her behalf by her father, who has represented her throughout and who the Tribunal appreciates is not a lawyer or professional representative, are somewhat muddled and contain undigested and misapplied statements of legal principal.
The Tribunal has therefore had regard to the reasons for resignation given by the Applicant herself during the course of her sworn oral evidence. In her evidence in chief, the Applicant said that she resigned because she heard nothing following the Respondent's letter of 11 April 1996 and because the Respondent was not taking seriously her complaints ie the matters raised in her letters of 27th February and 23rd March 1996.. In cross-examination the Applicant was asked "what was the reason in your mind for resignation?" The Applicant answered "Because no-one had come back to me". Later in her cross examination, the Applicant said that she did not accept the alternative job position offered by the Respondent after her resignation because she did not want to go back into the "rat race" of the job and she agreed that it was only the delay that caused her to resign.
The Tribunal finds that these were the true reasons for the Applicant's resignation; it accepts that her sworn evidence in preference to the other grounds advanced in the letter of 9 May 1996 (the drafting of which we find was undertaken largely by Mr Mackrell and the Applicant's newly instructed Solicitor) and in the closing submissions made by Mr Mackrell.
The Applicant claims that her reason for resignation constituted conduct on the part of the Respondent likely to destroy or seriously damage the relationship of confidence between the employer and employee. The Tribunal finds that there was an implied term of mutual trust and confidence in the Applicant's contract of employment and that the breach of such term by the Respondent would be a fundamental breach amounting to a repudiation. The issue, therefore, is whether the Respondent was in breach of such implied term.
The Tribunal has considered the nature of the Respondent's investigation and the context in which it was conducted.
It was submitted on behalf of the Applicant at the hearing that the matter in issue was a failure by the Respondent to properly carry out an investigation of the Applicant's "grievances". The Tribunal rejects that submission. In the first place, the Applicant did not submit a formal grievance (as she conceded at the hearing) and the Respondent's formal grievance procedure did not apply to the Respondent's investigations.
Secondly, the primary purpose of the Respondent's enquiries was not the investigation of the Applicant's "complaints" or "grievances" but rather to consider whether the Applicant had made out a case to support her application for a transfer to a new job in a different department. That was the specific request contained in the Applicant's letter of 20 January 1996, written some three months after the Applicant had been to see Mr Bracher about the working atmosphere in the department and her poor relationship with Mrs Evans and seven weeks after the Applicant had commenced her sick leave. The position is confirmed by the Applicant's long letter dated 27 February 1996, which commences by making it clear that the "examples of problems encountered set out at length in the letter are by way of reasons for her request for a job transfer".
The Tribunal has judged the conduct of the Respondent strictly in the context of the basis of its own investigation as it reasonably understood it to be at the time, namely a consideration as to whether the Applicant had or had not justified her request for a job transfer. Mr Mackrell's submissions that the Respondent's conduct should be judged retrospectively in a different context, namely that of investigating "grievances in a proper and timeous fashion" have been rejected.
The Tribunal finds that no criticism of the Respondent's conduct prior to 28 March 1996 can be upheld. It found Mr Jackson to be an impressive witness and was satisfied that between assuming responsibility for the Applicant's case in early March and falling ill himself on 28 March he had conducted the matter in a thorough and conscientious manner. Two long meetings had been held with the Applicant at her own home, and in her father's presence. Mr Jackson had kept his word by getting his investigation underway during the week following the meeting on 13 March. Following the subsequent meeting on 25 March, when he had discussed with the Applicant for three and a half hours her grounds for applying for a transfer, Mr Jackson had a long interview with Mrs Evans, but three working days later, he fell seriously ill and was away from work for a month. The handling of the matter thereafter by the Respondent was unsatisfactory. At least when it became apparent that Mr Jackson's absence was to be protracted, the Respondent should either have appointed another suitable person to take over the Applicant's case or at least informed her promptly of the situation and explained why there would be a delay. The Respondent's letter to the Applicant of 11 April 1996 was mistaken and misleading. Mr Jackson was not, in fact, on holiday and the Respondent was not justified in expressing the hope that he would be "back at work very shortly". Following his return to work on 29th April, Mr Jackson completed his enquiries and came to his conclusions…. the Applicant immediately on his return to work, especially in the light of the false information which had been given to her in the letter of 11th April. In the result, the Applicant heard nothing from the Respondent between 12 April and 9 May which in all the circumstances, the Tribunal finds to have been unreasonable, even allowing for the fact that it was always open to the Applicant or her father (who had by then assumed an active role in the matter) to have contacted the Respondent and ascertained from themselves the state of Mr Jackson's health and the reason for the delay in receiving further news).
The Tribunal has considered all that occurred between the Applicant's letters of the 20th January 1996 applying for a job transfer and her letter of resignation dated 9th May 1996. It has asked itself whether the Respondent's actions, taken together, cumulatively amount to a breach of the implied contractual obligation of trust and confidence.
The fact that the Respondent acted unreasonably towards the Applicant during the hiatus caused by Mr Jackson's illness does not determine the matter since there is no implied contractual term that an employer will treat an employee in a reasonable manner. The Tribunal has taken into account the fact that the Applicant was away from work throughout the relevant period and that, according to her medical certificate, there was no immediate prospect of her being able to return to work. What was in issue, therefore, was the job that… the period in question the Applicant had the benefit of the support and representation of her father, who was clearly at pains to take such actions as he considered to be in his daughter's best interests and who could, therefore, have enquired from the Respondent as to the reason for the delay during Mr Jackson's illness.
The Tribunal rejects that the Applicant's claim that the Respondent's conduct showed that it was "not taking seriously" the Applicant's position. The two long meetings with her, and the steps taken by Mr Jackson, clearly show that the Respondent was treating very seriously the Applicant's application for a job change and the grounds which she had submitted.
The Tribunal has concluded that, looked at as a whole and viewed objectively, the Respondent's conduct does not evince an intention no longer to be bound by the contract and was not, therefore, repudiatory.
Since there was no fundamental breach of contract on the part of the Respondent, the Tribunal finds that the Applicant's resignation was voluntary and that she was not constructively dismissed".
1) what are the terms of the contract
2) did the facts found amount to a breach
3) was the breach repudiatory
4) did the employer act in response to that breach and with reasonable speed.
"Accordingly, we consider that the industrial tribunal was entitled to reach the conclusions which it did on the evidence before it, and it has not misdirected itself in any way".
They noted that neither man was provided with a written statement of the terms and conditions of his employment, which would have specified the method of pursuing a grievance. In his written statement… the employers' chairman said he was well known to see any employee who has a grievance or other problem. As the tribunal noted, the employees tried to speak to the chairman, but were rebuffed. The tribunal was of the view that any grievance procedure should have incorporated within it some kind of time limit, so as to ensure that grievances were nipped in the bud. In the absence of any grievance procedure in the contract of employment the employees' grievances, instead of being considered and dealt with promptly, were allowed to fester in an atmosphere of prevarication and indecision. The industrial tribunal concluded, and I quote:-
"we think that this failure by the employers amounted to a breach of contract".