At the Tribunal | |
On 14 May 2003 | |
Before
THE HONOURABLE MR JUSTICE BURTON (PRESIDENT)
DR A H BRIDGE
MR P M HUNTER
APPELLANT | |
RESPONDENT |
Transcript of Proceedings
JUDGMENT
For the Appellant | Mr W Kane, Representative 29 Douglas Gardens Uddingston GLASGOW G71 7HB |
For the Respondents |
Mr C Phillips, Solicitor Of- Messrs Mackay Simon Employment Division Maclay Murray & Spens 3 Glenfinlas Street EDINBURGH EH3 6AQ |
THE HONOURABLE MR JUSTICE BURTON (PRESIDENT)
"The Tribunal then reviewed all the evidence in order to ascertain whether, viewed collectively, all of the matters proven against the respondents could support the inference that they were in breach of the trust and confidence term."
And then in paragraph 184 the Tribunal concludes:-
"It will be clear from the foregoing that we are not satisfied that the respondents were in breach of the trust and confidence term. At best - from the point of view of the applicant - the respondents took a robust view of his failings and communicated this view to him in plain and simple language. Even if we make the assumption, favourable to the applicant, that the communications were such that they were calculated and likely to damage the relationship of trust and confidence between the parties, the applicant has not demonstrated that they were made without just and proper cause. Accordingly, we are not satisfied that the respondents were in breach of the trust and confidence term, and it follows that the claim that the applicant was unfairly dismissed must fail."
"We mention in passing that in relation to many of the events said to constitute discrimination there was no dispute of primary fact. In relation to yet others there was no dispute concerning the reason for that treatment. Only in one or two cases was there a dispute concerning whether the alleged treatment of the applicant had actually taken place. In these circumstances, our approach to the matter has been thus. Where the fact of the treatment accorded to the applicant was not in dispute, but the reason for the treatment was said by the applicant to be related to his disability, and the respondent disputed any such relationship, we have considered whether the facts are more, or equally, consistent with the hypothesis that the treatment was accorded to the applicant for a legitimate, commercial reason, in which case, we are satisfied that there should be no room for us to draw an inference favourable to the applicant in relation to the treatment concerned. Equally, however, we took the view that, were we to be satisfied that treatment accorded to the applicant could not, or was not, accorded to him for a legitimate commercial reason, the door was open to allow us to drawn an inference of unlawful discrimination. We emphasise, however, that our approach was not piecemeal. In other words, we did not consider each of the allegations made by the applicant in isolation from the other, though, for the purpose of exposition of our reasoning the approach is necessarily analytical. In other words, we bore in mind the need to look at the totality of the treatment accorded to the applicant, and were acutely conscious of the fact that, were we to be satisfied in a specific instance either that the respondents had discriminated against the applicant unlawfully, or that a series of marginal decisions had "gone against" the applicant in circumstances such that there was too much of a coincidence, we were free to draw an inference favourable to the applicant."
The Tribunal then considers separately each of the allegations upon which the Applicant relied separately or cumulatively as amounting to discrimination in paragraphs 190 to paragraph 235.
Constructive Dismissal
"For convenience I will set out the term again. It is expressed to impose an obligation that the employer shall not: "without reasonable and proper cause, conduct itself in a manner calculated and likely to destroy or seriously damage the relationship of confidence and trust between employer and employee:" see Woods v W.M. Car Services (Peterborough) Ltd [1981] ICR 666-670 (Browne-Wilkinson J) approved in Lewis v Motorworld Garages Ltd [1986] ICR 157…"
Mr Kane points out that this phraseology has been adopted in terms by the Tribunal, in that on no less than three occasions in the course of a lengthy judgment, in paragraphs 146, 147(3) and 184, the Tribunal refers to, "calculated and likely". Mr Kane points out that this formulation must be erroneous, when it is compared with Lord Steyn's own reformulation of the questions later in his own speech, i.e., at 46G at (3) "that such conduct must be calculated to destroy or seriously damage the trust between the employer and employee": at 47B, in approving the formulation by Mr Douglas Brodie of Edinburgh University in an article "… what is significant is the impact of the employer's behaviour on the employee rather than what the employer intended. Moreover, the impact will be assessed objectively," and at 47E "The implied obligation extends to any conduct by the employer likely to destroy or seriously damage the relationship of trust and confidence between the employer and employee." Thus, submits Mr Kane, conduct which amounts to a breach of the implied term, and thus automatically repudiatory of the contract, does not have to be calculated in the sense of intended but can, in the alternative, by virtue of its objective effect on the employee, have such a repudiatory consequence even if it is not intended but simply likely (or calculated in a different sense). The answer is in fact a simple one. It would appear that either Lord Steyn, or the transcriber of his speech, simply permitted a misprint at 45F. In Transco Plc v O'Brien [2002] ICR 721 at paragraph 12, Pill LJ pointed out, in relation to the passage in Lord Steyn's speech: "The second "and" in that passage is a misprint. The word used by Browne-Wilkinson J in Woods is "or"".
"142 "At page three of his submission Mr Kane lists ten actings or omissions of the Respondents said to constitute the breach [of the implied term as to trust and confidence]. It is not altogether clear to us whether it is suggested that each and every one of these matters constituted a breach of the trust and confidence term, or if it is suggested that cumulatively (but possibly in combination with other circumstances …) the said factors constituted such a breach. Before proceeding further, it is as well for us to make clear our own approach to the matter. One theme in evidence underpinned and connected all of the matters complained of, namely, the alleged fact that the Respondents had made up their mind to get rid of the Applicant. The suggestion was not only that the Respondents were determined to be rid of the Applicant, but also that they were determined to be rid of him by fair means or foul. See, for example, the submissions at page 3 line 40 where Mr Kane suggests that the Respondents were guilty of "bullying and harassment," pages 11, line 20 where Mr Kane suggest that the issue [the document] D1 was a "known pretext," page 23, line 20, where Caroline Barr and the said Hanlon are accused of planning "to obstruct the Applicant," and the Applicant's own evidence that he was "fitted up" by the Respondents). Indeed, we have expressly found as a fact that it was the Applicant's belief that the Respondents wanted rid of him, and that they set out to demoralise him, to "sicken" him and that that belief caused him to resign. Although Mr Kane does not put it thus, we take it to be his case that the Respondents were in breach of the trust and confidence term in that, having conceived a desire to be rid of the Applicant, they formed a plan or conspiracy to demoralise the Applicant with the object of inducing him to resign, and pursuant to that plan or conspiracy singled him out for special treatment, denying him bonuses and pay rises, subjected him to unjustified and harsh disciplinary procedure, harassed him in an endeavour to persuade him to resign; that is they carried out the act said by the Applicant to have been carried out by the Respondents on page 3 of the submission.
143 This formulation has important consequences for the Applicant's case, because, in order to succeed, he must show that the Respondents were indeed guilty of what he believed them to be guilty, and that that of which he believed them to be guilty constituted a breach of contract. In other words, the Applicant must prove that the Respondents were as a matter of fact in breach of contract in the manner in which he believed them to be in breach - that is in the manner that we have outlined."
"147(5) "The law does not generally concern itself with motive or intention in questions involving breach of contract, but in the context of a question concerning the possible breach of the trust and confidence term, the motive or intention of the employer [may] [our underlining] be crucial, because conduct possibly trivial enough in itself may be deemed to be more serious, if the employee rightly perceives that the conduct is executed with the intention of hurting him, or is "aimed at" him personally. For intention to be relevant in this way, there must be some wrongful conduct on the part of the employer rendered all more serious by the intention of the employer … a malicious intention can convert a trivial breach into a fundamental one.
147(6) The intention may be relevant in a second sense. Even if the employer does something which he is entirely entitled to do in terms of the contract, he may still be in breach of the trust and confidence term, if he acts spitefully, and if that spite is communicated to the employee directly, or perhaps, "leaked" to the employee concerned."
"157 We reject utterly any suggestion by the applicant that D1 was issued as part of a Machiavellian plot to get rid of him in which the said Hanlon deliberately set out to record that the applicant had received training that he had not received with a view to founding on that record in any subsequent question concerning the applicant's continued employment."
"In case, however, we erred in our formulation of the applicant's case, we also examined each and every one of the respects in which it is suggested that the respondents were in breach of the trust and confidence term in order to see if any such breach was disclosed in any particular instance."
After paragraphs 147(5) and (6), which themselves disclosed that the Tribunal appreciated that the issue it was addressing was whether intention could transform an otherwise harmless act into a breach, and just prior to the conclusion in paragraph 157 in great detail that the sending of D1 was not part of a ("Machiavellian plot"), the Tribunal considered the sending of D1 in paragraphs 153 to 155, and concluded as follows in paragraph 156:-
"156 We quite accept that the receipt by the applicant of D1 damaged the applicant's morale. For present purposes we accept that it was foreseeable that the issuing of D1 would damage the applicant's morale, and even dent his trust and confidence in the respondents. We also accept that an employer who damages an employee's morale, or his trust and confidence may be in breach of contract, but only if he does so "without reasonable and proper cause," and the applicant has not shown that the respondents acted without reasonable and proper cause, and the onus of proof is squarely with him."
(i) Mr Kane alleged that the conclusions which the Tribunal reached in paragraphs 152 to 158 as to the sending of the memo D1 were conclusions to which no reasonable Tribunal could come. Apart from its conclusion that the sending of D1 was not "part of the Machiavellian plot", the Tribunal in terms made findings about it. They include the following:-
"154 …(It is far from clear to us even that the word "criticism" in connection with the document D1, is appropriate - at least in the sense of suggesting unfavourable comment concerning the applicant's work. Rather D1 is a statement of objectives, but we proceed on the assumption - favourable to the applicant - that D1 contains negative criticism of his work.) The applicant has most certainly not demonstrated that he was in any way singled out. Another employee received a letter in very similar terms. The applicant did not suggest that any criticism of his work made in the course of the discussions which preceded the issuing of D1, or implicit in D1 itself, was made in bad faith or in the sense that the respondents did not genuinely believe in the truth of the criticisms - merely that the respondents over reacted…
155 The applicant can only succeed, if he can demonstrate that no reasonable employer could have taken the view that the criticisms were valid ones. The applicant has wholly failed in this connection. The respondents were entitled to take the view of the applicant's performance that they did. Nor can we agree that the issuing by the respondents of D1 is an over reaction."
(ii) The second matter in relation to which Mr Kane alleges perversity by the Tribunal is in regard to the meeting of 14 February 2000, shortly before the Applicant's resignation, of which there is a short typed transcript of the handwritten notes of the meeting. The Tribunal deals with this in paragraphs 82 to 97 by way of findings of fact, and in paragraphs 172 to 179 by way of conclusions in respect of breach. Its conclusions include the following:-
"89 Our finding on this matter is best summed up by saying that we are satisfied that the said Hanlon conveyed to the applicant in clear terms that he was dissatisfied with his performance and further that he doubted his capacity to do the job. He also spoke to the applicant in such a way as to convey to the applicant that he should consider carefully whether he should continue in the employment of the respondents, that he should talk matters over with his wife and that he should consider whether he ought to take another job within the organisation. We are also, however, satisfied that he advised the applicant that, no matter what decision he reached, the company would support him and provide him with suitable training.
90 After the meeting the applicant was demoralised. We are satisfied that the said Hanlon spoke to the applicant in plain terms. We are not satisfied, however, that the said Hanlon's purpose in speaking to the applicant was anything other than to improve his performance, and to induce the applicant to think seriously about his performance and his future role within the company. In particular we emphatically reject any suggestion that the said Hanlon was in any way maliciously inspired, or that he derived any improper pleasure from the meeting. We are quite satisfied that the views expressed by the said Hanlon were honestly held, that there was material upon which he could reasonably reach the conclusion that he did, and that, unpleasant though the experience may have been from the applicant's point of view, (and that of Hanlon) the views were not immoderately or "nastily" expressed.
92 We are also satisfied … that in the course of the discussion, the applicant said that his stamina waned during the day and that the said Hanlon expressed admiration for the applicant in staying at work. He also said that the respondents would support the applicant no matter what decision he reached.
176 …We also hold that in the course of the conversation of 14 February the said Hanlon advised that the applicant that, no matter what decision he reached, the respondents would support him and provide him with requisite training."
Disability Discrimination
"In the course of the hearing, however, there was a suggestion that the applicant was disciplined for a reason related to his disability supported by different reasoning The suggestion was that in the early part of 2000 the applicant's condition was such that he tired very easily and was fatigued. The errors that he made were exactly the kind of errors to be expected of a man who was fatigued. There was also the suggestion that the medication taken by the applicant affected his performance. Accordingly, we should infer that errors made by the applicant were the result of fatigue or the medication that he was taking. On either view the errors made by the applicant were related to his disability, and, accordingly, the respondents had discriminated against him. Although we recognise the logic of the argument, it fails on the facts. The onus of proving that he was disciplined for a reason related to his condition clearly lies with the applicant. No expert medical or pharmacological evidence was led to persuade us that the applicant's errors were the result of his condition, or the medication that he was taking: we are satisfied that the applicant was prone to making careless errors at a time when there is no suggestion that his performance was affected either by his condition, or the medication that he subsequently took. In the absence of expert evidence, which could easily have been obtained and led, we would have been reluctant to hold that the applicant's errors were the result of his condition or medication, but in the light of the fact that we hold proven that the applicant made careless errors at a time when there is no suggestion that his performance was affected by his condition or medication, we are not prepared to hold any link established and the case must fail on the facts."
"We have no doubt that many of the errors discussed were administrative errors, not related to any lack of computer skills, and that it was clearly understood that greater attention to detail was the remedy."
"(1) For the purposes of this Part, an employer discriminates against a disabled person if-
(a) for a reason which relates to the disabled person's disability, he treats him less favourably than he treats or would treat others to whom that reason does not or would not apply;"
He submitted that the Tribunal erred in respect of both its approach to causation and its treatment of the comparator (to which we will refer in a moment), by reference in the judgment in Clark of Mummery LJ at 962D:-
"The causal link between the reason for the treatment and the disability is not the reason for the treatment. It is not included in the reason for the treatment. The expression "which relates to the disability" are words added not to identify or amplify the reason, but to specify a link between the reason for the treatment and his disability which enables the disabled person (as opposed to an able-bodied person) to complain of his treatment. That link is irrelevant to the question whether the treatment of the disabled person is for a reason which does not or would not apply to others."
(i) On the basis of the findings of fact (which we are satisfied cannot be shown to be perverse) in paragraph 224, reference to the other employee is to an appropriate comparator, once the finding is made by the Tribunal that the Applicant was committing errors which were not due to his disability. If and insofar as the Tribunal so found, then the comparison would be between the Applicant being criticised for errors which had nothing to do with any disability and another employee being criticised for errors nothing to do with any disability (as he was not disabled). There is no Clark v Novacold error in those circumstances.
(ii) Although it appears clear to us that this is not the way that the matter was put by Mr Kane below (the nature of his submission is clearly set out in paragraph 224 itself, namely that the errors were "the result of fatigue or the medication that he was taking"), nevertheless during the course of argument it appeared to the Tribunal that Mr Kane might have been able to put forward, and he did adopt from the Bench, an argument that it ought, pursuant to section 5(1)(a) of the Act, to have been concluded that, or at any rate, considered whether, the treatment by the employer i.e., his criticism, was indeed for a reason "which relates to the disabled person's disability"; not because the errors were due either to the Applicant's condition or to his medication (as to which there was the clear finding of fact) but due to his absence from work, which was itself a result of his disability. If that were the case then there would be both an arguable breach of section 5(1)(a) and the use of an inappropriate comparator. We are satisfied however that this point, which did not in any event, as we have indicated, originate from Mr Kane, cannot be supported (even if it would be proper to allow it to be run on appeal). Reference to paragraph 78, which we have quoted above, to which Mr Phillips took us, makes it plain that the errors of which the Tribunal were speaking were not errors resulting from lack of training due to his absence from work, but were "administrative errors not related to any lack of computer skills": and in any event we are not satisfied that, when the Tribunal concluded that the errors were not a result of his "condition", it was not fully taking into account that that condition had in fact led to his absence from work.
(i) He made the same case in relation to discrimination as he had made in relation to the approach of the Tribunal with regard to constructive dismissal by virtue of his criticism that, notwithstanding their reference to Anya they did not consider the discrimination allegation on the basis of totality, but only piecemeal. He is certainly right that they did consider, piecemeal, each of the allegations made by the Applicant, as must be the case where specific events are relied upon, in paragraphs 190 through to 235, but we are satisfied that in addition they "bore in mind the need to look at the totality of the treatment accorded to the Applicant" as they set out in terms before they launched on the process, in paragraph 189.
(ii) Mr Kane made the same case in relation to the perversity of the Tribunal's conclusions in relation to D1 and 14 February 2000 in relation to disability discrimination as he made with regard to constructive dismissal, inasmuch as they fall to be considered on both aspects; and for the same reasons we reject the allegation of perversity.
(iii) Mr Kane criticises the Tribunal for not addressing the issue of justification. But, as he accepted during a course of oral submissions, as the Tribunal did not conclude that there was prima facie discrimination, it did not need to consider the question of justification.
"The Applicant is a person with a disability within the meaning of the Disability Discrimination Act 1995 section one. It is not necessary for us to enter into the detail of the Applicant's condition nor of the treatment received by him. That detail is more than adequately set out in the productions."
Those productions included a letter from a Doctor Colville which began as follows:-
"Undoubtedly Mr Smith suffered severe and continual physical impairment from his chronic renal failure from 1996 onwards. Chronic renal failure is a progressive condition, as lack of renal function means that toxins build up in the body and generally runs the patient down. In addition, normal renal function is required to produce healthy circulating red blood cells to carry oxygen to the tissues, and Mr Smith kidneys were unable to perform this function. Consequently, Mr Smith was clinically very anaemic and tired extremely easily."
He had a renal transplant operation, as we have set out, in the summer of 1999 which, according to the same letter from Dr Colville dated 16 June 2000 has "produced a marked improvement in Mr Smith's quality of life, but the transplanted kidney is only working at roughly 60% of normal function".
The Duty to Make Adjustments
"The Tribunal jumped from the evidence given at the Employment Tribunal that Ms Cosgrove's general practitioner and she herself could not think of any useful adjustment to the conclusion that no useful adjustment could be made … In the circumstances there was, in our judgment, a second material error of law, namely in regarding Ms Cosgrove's views and those of her general practitioner ass decisive on the issue of adjustments, where the employer himself had given no thought to the matter whatsoever."
(i) The first relates to the respect in which he takes issue with the conclusion of the Tribunal. The third suggested adjustment was that the Applicant should have been permitted to return to work in Martin House (one of the Respondent's premises), on a part time basis, in January 2000. This is dealt with in paragraph 241 of the Tribunal's decision. Mr Kane criticises the opening of that paragraph:-
"The third suggestion fails on the facts. We are most certainly not satisfied that there was any request by the applicant to be permitted to return to work at Martin House or on a part-time basis. This finding is fatal to this branch of the Applicant's case."
He submits that of itself is insufficient, because it ought not to be up to the Applicant to make the suggestion: so he pursues his case that there was an adjustment, namely the introduction of such a part time arrangement, which the Respondent ought to have adopted. But Mr Kane ignores the balance of this very paragraph of the Tribunal's decision for it continues:-
"We are satisfied that in December 1999 the applicant gave the impression to the respondents that he was fit and enthusiastic about return to work. We are satisfied that he produced to the respondents a medical certificate that confirmed that he was fit to return to work. We are satisfied that the respondents had not the remotest reason to doubt the validity of that certificate, or to go behind it. In these circumstances, in the state of knowledge that they had there was no obligation on them to raise with the applicant the question of the applicant working elsewhere or on a part-time basis."
We are satisfied that the Tribunal considered, and was entitled to reject, the suggestion that the Respondent was in breach in this regard.
(ii) Mr Kane then makes two further suggested adjustments, with which the Tribunal did not deal in terms. The first is that there ought to have been a provision for the Applicant to visit an occupational health adviser. The second is that the Applicant should have been established in a vacant room next door to Mr Hanlon. We do not conclude that the Tribunal erred in law in failing to consider these two further suggested adjustments before concluding that the Respondent was not in breach of duty. As to the first, as Mr Phillips has submitted, it is difficult to see what more could have resulted from the visit to the occupational therapist, but other than the suggestion of one or more of the adjustments which have already been separately considered by the Tribunal. As to the vacant room, as Mr Phillips has submitted it is wholly unlikely that this would have led anywhere. It was common ground that what the Applicant needed was training, and on the findings of the Tribunal the Respondent was ready to supply it, together with adequate supervision.