At the Tribunal | |
On 7 February 2001 | |
Before
THE HONOURABLE MR JUSTICE CHARLES
MR B GIBBS
MR A E R MANNERS
TURNER COULSTON (A FIRM) |
APPELLANT |
RESPONDENT | |
MRS M E JANKO |
APPELLANT |
RESPONDENT |
Transcript of Proceedings
JUDGMENT
Revised
For the Appellant (Respondent in EAT/559/00) |
MR K TURNER (Partner) |
For the Respondent (Appellant in EAT/559/00) |
IN PERSON |
MR JUSTICE CHARLES:
Introduction
"1. The Applicant was unfairly dismissed by the Respondents on or about 7th October 1998.
2. The Applicant's claim for remedy will be considered by the Tribunal on 9th December 1999."
"1. The Applicant is entitled to £696.91 being:
(a) pay in lieu of holiday £375.91
(b) unpaid wages £321.00
2. The Applicant is entitled to a basic award of £1650.
3. The Applicant is entitled to a compensatory award of £12,000.
4. The Recoupment Regulations apply."
The appeals – the "perversity points"
"Whenever an appeal is based on the perversity ground, this Tribunal must be extremely cautious not to conclude that the decision of the Industrial Tribunal is flawed because the Appeal Tribunal would have reached a different conclusion on the evidence or thinks that another Industrial Tribunal would have reached a different conclusion on the evidence. An appeal should not be allowed on this ground simply because the Employment Appeal Tribunal disagrees with the Industrial Tribunal as to the justice of the result, the merits of the case or the interpretation of the facts. This Tribunal should only interfere with the decision of the Industrial Tribunal where the conclusion of that Tribunal on the evidence before it is 'irrational', 'offends reason', 'is certainly wrong' or 'is very clearly wrong' or 'must be wrong' or 'is plainly wrong' or 'is not a permissible option' or 'is fundamentally wrong' or 'is outrageous' or 'makes absolutely no sense' or 'flies in the face of properly informed logic'. This variety of phraseology is taken from a number of well-known cases which describe the circumstances in which this Tribunal (and higher courts) have characterised perversity. The result is that it is rare or exceptional for an appeal to succeed on the grounds of perversity. The reason why it is a heavy burden to discharge is that it has been recognised by those with wide experience and practical wisdom that there are many factual situations arising in the field of industrial relations, including sex discrimination, in which different conclusions may be reached by different tribunals, all within the realm of reasonableness. It is an area in which there may be no 'right answer'. The consequence of this approach, also approved in cases of high authority, is that it is not appropriate or fruitful to subject the language of the decision of the Industrial Tribunal to 'meticulous criticism' or 'detailed analysis' or to trawl through it with a 'fine tooth comb'. What matters is the substance of the Tribunal's decision, looked at 'broadly and fairly' to see if the reasons given for the decision are sufficiently expressed to inform the parties as to why they won or lost the case and to enable their advisers to identify an error of law that may have occurred in reaching the conclusion. Viewed in that way, the decision of the Industrial Tribunal is not perverse.
We recognise that in this area no one is better placed to make a decision on the facts of a particular case than the Industrial Tribunal. It heard evidence from the witnesses, saw the material which Miss Stewart found to be offensive and considered the detailed arguments on the law and the facts. There is, of course, room for disagreement among different groups of people, such as Tribunals, as to what is or is not less favourable treatment and as to the extent to which women in the workplace are vulnerable to such treatment."
(a) no finding of the Employment Tribunal can properly be described as perverse;
(b) the arguments that findings of the Employment Tribunal are contrary to the agreed or undisputed evidence, or are not supported by any evidence, all fail;
(c) the arguments that the Employment Tribunal failed to take into account evidence, submissions or assertions, or failed to properly explain their findings having regard to the evidence, submissions and assertions, all fail; and
(d) in general terms none of these points establish that the Employment Tribunal erred in law.
The appeal against the Liability Decision
(1) In paragraphs 8 and 9 of the Extended Reasons by reference to the cases referred to therein the Employment Tribunal identified and posed the correct test in law and by reference thereto in paragraph 11 posed themselves the right question. Those cases were Western Excavating (EEC) Ltd v Sharp [1978] IRLR 27 (a leading case on constructive dismissal), Mahmud v BCCI [1997] IRLR 462 (a leading case on the implied term of trust and confidence) and Brown v Merchant Ferries Limited [1998] IRLR 682 (a case commenting on what needs to be shown to establish a constructive dismissal based on a breach of that implied term and the Sharp and BCCI cases and which we agree sets the correct test and approach).
(2) It is clear from the length of the hearing, the number of witnesses and the written submissions that much was said, and we would add could properly be said, on both sides as to their respective perception of the significant events and more generally their working relationship and environment. It follows that the Employment Tribunal were faced with competing versions and perceptions thereof.
(3) In our judgment although the arguments of the Appellants are based on the approach and findings of the Employment Tribunal the Appellants still place weight on their perception and analysis of documents and events. This would be understandable even in the absence of their attack on some of the findings on the grounds of perversity and lack of evidence to support them but those attacks (which we have rejected) add to point that the Appellants arguments are based in part on their version of events,
(4) As is well established and is reflected in the Stewart case cited above (although it is not one of the cases generally cited for these propositions) the approach of this Tribunal to Extended Reasons is not to submit them to detailed literal analysis but to read them broadly and benevolently to identify the substance of the decision of the Employment Tribunal looked at broadly and fairly. Additionally in respect of issues such as those that arose in this case and which depend on an analysis of conflicting evidence of events and perceptions this Tribunal recognises that the Employment Tribunal is the body charged with making decisions of primary and secondary fact and the function of this Tribunal is limited to considering whether the Employment Tribunal erred in law in so doing (e.g. by applying the wrong test or approach),
(5) In dealing with the issues in this case the Employment Tribunal were entitled to, and indeed in our view were bound to, take an approach that had regard to all the circumstances and one which after an examination of the relevant events individually had regard to their combined and cumulative effect.
(6) In our judgment a point that can be made against the argument and analysis of the Appellants is that it does not have regard to the combined and cumulative effect of the relevant (and disputed) circumstances.
1.1 The letter of 22 January 1998, which was written shortly after the reduction in the numbers of secretaries and the day after the Applicant had decided not to attend a meeting for staff at which the changes were to be discussed, did not feature in the further and better particulars of the Applicant's case and was not accompanied by medical evidence.
1.2 All this is correct and in our judgment is recognised by the Employment Tribunal (see for example paragraphs 7 (18) to (20) of the Extended Reasons).
1.3 Further we agree with the Appellants that (i) these points can be said to show a reluctance by the Applicant to co-operate in the reduction of secretaries decided on as part of their plans, and (ii) the receipt of a letter from an employee that warns that he, or she, may be made ill by a course of conduct envisaged, or being put into effect by an employer is not by itself enough to render the employer in breach of contract if he does not accept that this is, or is likely to be the case, and carries out little or no investigation.
1.4 In our judgment (i) the reaction and attitude of an employee to a change in working conditions decided upon by the employer, and (ii) such a letter and the employer's reaction to it has to be assessed having regard to all the relevant circumstances of the case.
1.5 In our judgment on a fair reading of the Extended Reasons and in the knowledge, for example, of the findings (and evidence) as to the Applicant's character, the quality and nature of her workload and the perceptions of the parties as to those matters and the evidence that Mr Josephs knew of her history of depression it was perfectly open to the Employment Tribunal to conclude as they did that this letter was a cry for help.
1.6 Further we add that it is important to consider both (i) the Applicant's reaction to the change in working conditions, and (ii) this letter and its effect having regard to the history of the case and in particular the findings of the Employment Tribunal in paragraphs 7 (12), (22) and the end of (26) of the Extended Reasons.
2.1 The Appellants submitted that the letter of 22 January 1998 did not raise safety matters.
2.2 We accept that.
2.3 However in our judgment the Appellants seek to make too much of this point because in our view on a fair reading of the Extended Reasons (i) the basis for the decision of the Employment Tribunal is the conclusion in paragraph 19 of the Extended Reasons, and (ii) notwithstanding its last two sentences paragraph 16, and thus the references therein by the Employment Tribunal to British Aircraft Corporation v Austin [1978] IRLR 332 and to safety are by way of analogy and to assess the failure to investigate the effects of the change in secretarial support on the Applicant having regard to the implied term of mutual trust and confidence.
2.4 If, and to the extent that, the view expressed in paragraph 2.3 is wrong we are further of the view that any reliance on a breach of an implied term relating to matters of safety is severable and does not found a successful appeal.
3.1 The events of 11 September 1998.
3.2 As mentioned above (see paragraph 11) an area of the evidence and thus the disputes of primary fact upon which we heard oral submissions were the events of 11 September 1998 and in particular whether the exchanges between the Applicant and Mr Josephs contained a reprimand in humiliating circumstances. The Appellants in argument relied largely on the Applicant's statement and further and better particulars.
3.3 The focus of this attack on the findings was that on the Applicant's own evidence no-one else was present when Mr Joseph made the remark recorded at the beginning of paragraph 7 (27) of the Extended Reasons, or until the Applicant sought assistance from Mrs Hill.
3.4 From that it was argued that the finding that Mrs Churchill was present during the first part of the interview was wrong and unsupported by evidence, and further that the Appellants should not have to bear responsibility for what was said in the presence of others because they were brought in by the Applicant.
3.5 There was a dispute in submission as to whether Mrs Churchill had given evidence that she had heard the first part of the exchanges. For present purposes we shall assume in favour of the Appellants that there was no evidence that Mrs Churchill was present, or heard, the first part of the exchanges and therefore that the Employment Tribunal made a mistake in saying that she was so present.
3.6 On that assumption in their favour in our judgment this argument of the Appellants is pedantic and somewhat petty. We are of this view because having regard to the findings in paragraph 7(27) as supplemented by the notes of evidence and the submissions of the parties it is clear to us that the nature and general content of the exchanges continued after the Applicant sought assistance, and thus some support, from Mrs Hill.
3.7 Further it seems to us that what matters in respect of these exchanges, which were heated on the Applicant's side, is the overall tenor and approach of the respective participants and their connection to the continuing issues relating to the reduction in secretarial support and the Appellants' stance in respect of it recorded for example at the end of paragraph 7(26) of the Extended Reasons.
3.8 In our judgment on a fair reading of the Extended Reasons this is the approach of the Employment Tribunal and their reference in paragraph 15 of the Extended Reasons to the accusation they find was made during the early part of the exchanges as being the final straw does not isolate it from the remainder of those exchanges.
3.9 In this context we have not overlooked the point that the Employment Tribunal return to this accusation in the Extended Reasons for the Remedy Decision and we accept that this confirms that they attached importance to it.
3.10 Additionally in our judgment on a fair reading of the Extended Reasons the reference in the last sentence of paragraph 18 thereof to the Applicant being reprimanded is not confined to the earlier part of the exchanges. This follows from the reference therein to Mrs Hill as well as to Mrs Churchill. On our assumption in favour of the Appellants, referred to in paragraph 3.5 above, this finding is a confirmation that the nature of the exchanges continued after the Applicant sought assistance from Mrs Hill and they continued in her presence and that of Mrs Churchill.
3.11 On a point of detail it is to be noted that the finding is that the Applicant sought assistance from Mrs Hill and not from her and Mrs Churchill and this was not disputed. Further it is unlikely that the Applicant would have invited Mrs Churchill to assist her, or have regarded her as an ally, given the finding in paragraph 7(25) of the Extended Reasons. This means that on the facts the Appellants' argument that the exchanges between Mr Josephs and the Applicant were either when they were alone or in the presence of an invitee of the Applicant is incorrect.
3.12 Finally in this context we add that in our view on a fair reading of the Extended Reasons it is not correct to treat paragraph 18 thereof, and thus the reference therein to Hilton International Hotels (UK) Limited v Protopapa [1990] IRLR 316, as a free standing and separate basis for the decision. As with paragraph 16 of the Extended Reasons and the reference therein to the Austin case, we are of the view that this reference in paragraph 18 is by way of analogy and is part of the reasoning relating to the breach of the implied term of trust and confidence and if, and to the extent that, we are wrong as to that it is severable.
4.1 The Appellants argued that the delay between the exchanges on 11 September 1998 and her "resignation letter" of 6 October 1998 and the points that she produced medical certificates during that period, took legal advice 7 days after 11 September and was paid over the period had the result that she did not leave because of the Appellants' alleged breach of contract or that she had waived such breach.
4.2 These are in effect arguments on causation.
4.3 In our judgment these points were dealt with properly by the Employment Tribunal in particular by the end of paragraph 7(27) and paragraphs 10 and 20 of the Extended Reasons.
The appeal against the Remedy Decision
The Cross Appeal
"15 We said that there were three matters. Mrs Janko is present this morning and she wishes to raise a third matter. In the light of what we are about to say, it does not seem necessary to call upon her but on 15 April, that is to say very recently, she indicated a wish to cross-appeal on the remedies decision, so far as concerned the impact of Recoupment Regulations. Her case is that incapacity benefit which, she says, is the relevant benefit to consider, does not fall within the Recoupment Regulations. We extend time for service of a Notice of Appeal or Cross-Appeal, whatever would be appropriate on Mrs Janko's part, to 16 April. On that basis that validates the Notice of Appeal which she has already sent in. There is, as it seems to us, here an arguable point of law. On a pro forma preliminary hearing of the Notice of Appeal, which we just validated, we direct that it too should go to a full hearing with the other two to be heard at the same time. We have not heard Mrs Janko on this at all. If she wishes to add something on this third point she is at liberty to do so. Since we have given her all that she asked for, it may be that she has nothing further to say."
"With reference to your letter dated the 21/07/00 about recoupment of benefit.
The Industrial Tribunals Act enables the Secretary of State to recover from an employer some or all of any Job Seekers Allowance already paid for a period covered by an initial award. The amount to be recouped is the lesser of:
1 the amount of the prescribed element, or
2 the amount of the Job Seekers Allowance paid during the period of the prescribed element.
Housing costs included in a Job Seekers Allowance award, ie mortgage interest and fuel bills are included in the amount to be recouped. As the prescribed element is from the 07/11/98 to 09/12/99 Job Seekers Allowance paid in that period will be recouped. Your claim to Job Seekers Allowance was for the period 14/12/98 to 04/03/99 and the amount of Job Seekers Allowance paid in this period was £611.40 this amount to be recouped. As you also received Income Support in the dates of the prescribed element, you would need to contact Income Support for this amount."
"Ref to your letter dated 19.11.00. Our records show that you have received £15.95 Income Support from 7.10.98 – 17.12.98."
(1) The confusion may have arisen because the copy of the Notification of Recoupment form we have shown does not include (as it should) an explanation of Regulations 8 and 9 of the 1996 Regulations.
(2) The relevant Regulation is Regulation 8 of the 1996 Regulations (and indeed we express some surprise that Turner Coulson, as Solicitors, have not checked this for themselves).
(3) That Regulation sets out the mechanics of recoupment and as appears therefrom shows that it is to be initiated by the Secretary of State serving on the employer a Recoupment Notice (we were not shown any such Recoupment Notice).
(4) Regulation 8(2) makes it clear that the appropriate amount for recoupment is whichever is the less of (a) the prescribed element or (b) the amount paid by way of or paid as on account of jobseekers allowance or income support to the employee.
(5) Regulation 8 also contains time limits.