At the Tribunal | |
Before
THE HONOURABLE MR JUSTICE RIMER
MISS G MILLS MBE
MISS S M WILSON CBE
APPELLANT | |
RESPONDENT |
Transcript of Proceedings
JUDGMENT
Revised
For the Appellant | MISS J MULCAHY (of Counsel) Instructed by: Messrs Maclay Murray Spens Solicitors 10 Foster Lane London EC2V 6HR |
For the Respondent | MISS D SEN GUPTA (of Counsel) Instructed by: Messrs Lai Burke & Co Solicitors 55 Conduit Street London W1S 2YE |
THE HONOURABLE MR JUSTICE RIMER
"Stated that GNT GmbH was near bankruptcy and that Mr Malkus (the chief executive officer of [GNT], Managing Director of GNT GmbH and Director, and Director of [Global]) had led the GNT group to disaster.
Stated that Malkus had used company Company funds for his private purposes.
Proposed diverting Mr Akid's business away from the GNT group to a venture that the Applicants were proposing to set up together.
Asked Mr Akid to persuade a potential investor not to invest in GNT GmbH but rather to invest in [GNT] and GNT USA.
Asked Mr Akid to poach [GNT's and Global's] customers for the Applicants' proposed new venture".
"(vii) In the event, the Applicants did not attend the disciplinary hearing. They claimed [GNT and Global] had informed members of staff and certain clients that they would both be dismissed from their employment and declined to attend on the basis that the decision to dismiss had already been taken. Instead they submitted detailed statements refuting the allegations. In addition, they submitted a witness statement from Mr Peter Finch, who had been present during part of the meeting in Spain and who supported the Applicants' version of events.
(viii) (viii) In a letter dated 11 October 2002, [GNT and Global] denied that the decision to dismiss had already been taken and informed the Applicants that further investigations were to take place.
(viii)
(viii) (ix) It appears [GNT and Global] then sought Mr Akid's comments on the Applicants' and Mr Finch's witness statements. Mr Akid supplied a supplementary statement in which he stood by his original allegations. Mr Akid's supplementary statement was not supplied to the Applicants as it should have been.
(ix)
(ix) By letters of 17 October 2002, Mr Colombo notified the Applicants that the allegations of gross misconduct had been upheld and that they were to be dismissed with immediate effect. The letters stated: "I have been presented with completely conflicted accounts with the meeting (in Spain ). I have decided not to accept your account and think concluded that you have committed acts of gross misconduct".Nomisconduct". No reason was given for rejecting the Applicants' evidence in either letter or in Mr Colombo's witness statement to the Tribunal.
(x) The Applicants were not afforded the opportunity of an appeal"
16. "In a dismissal case based on conduct, it is necessary for the employer to have a genuine belief that the employee has behaved in the manner alleged and to have reasonable grounds for that belief. The Ttribunal was not satisfied that Mr Colombo held a genuine belief in the Applicant's' misconduct or that his belief was based on reasonable grounds. This was because he gave no reasons in either the letters of dismissal or in his witness statement for preferring Mr Akid's and Mr Velten's evidence. In the absence of a reason(s) there was no evidence on which it could be said that Mr Colombo's belief was held on reasonable grounds.
17. Furthermore, the conversation between Mr Weber and Mr Warren on 3 September 2002 led the Tribunal to conclude that [GNT and Global] had formed a particular view of the Applicants' conduct before the disciplinary hearing took place with the result that Mr Colombo made no serious attempt to consider the allegations with an open mind. The fact that the Applicants were not provided with a copy of Mr Akid's supplementary witness statement merely served to reinforce this view.
18. Thus having regard to the matter overall, the Tribunal concluded that the decision to dismiss [Mr Barter] was unfair and outside the range of reasonable responses. For the same reasons the Tribunal was not satisfied that the Applicants had committed repudiatory breaches of contract that entitled [GNT and Global] to dismiss them summarily".
GNT's appeal against the decision on liability
(a) Mr Barter's claim for unfair dismissal
"(i) Did [GNT] hold a genuine belief in Mr Barter's misconduct?
(ii) Was the belief held on reasonable grounds?
(iii) Did [GNT] hold a reasonable investigation?"
(b) The appeal against the finding of wrongful dismissal
" The question of whether an employee's conduct amounts to a repudiatory breach of contract is a question of fact for the Tribunal to decide. In order to amount to a repudiatory breach, the employee's behaviour must disclose a deliberate intention to disregard the essential requirements of the contract. Many factors may be relevant, including the nature of the employment and the employee's past conduct."
(c) The appeal on quantum
(x) "Finally, Mr Weber alleged that [Mr Barter's] compensatory award should also be reduced because [Mr Barter ]had told him at a social occasion in March 2003 that he was doing very well in his new venture and had never earned so much before. [Mr Barter] denied making any such statement".
21. "To reduce [Mr Barter's] compensatory award on this basis, the Tribunal had to be satisfied that GNT held a genuine and reasonable belief in Mr Barter's misconduct after a reasonable investigation. Whilst [GNT] may have held a a genuinegenuine belief in [Mr Barter's] misconduct, the Tribunal was far from satisfied that this belief was held on reasonable grounds. All but one of the allegations of fraud and improper conduct arose for the first time in Mr Weber's witness statement with the result that [Mr Barter] had very little time to respond. On the face of it, [Mr Barter] had plausible explanations for what had occurred. Thus, in the absence of further evidence, the Tribunal could not conclude that there were reasonable grounds for [GNT's] belief in [Mr Barter's] misconduct. Furthermore, the Tribunal was not satisfied that the remarks attributed to [Mr Barter] at the social function in March 2003 established that he was lying about his current earnings position. The remarks did no more than raise a suspicion that the position was not as he presented it to be. The proper course for [GNT] in these circumstances would have been to seek disclosure of [Mr Barter's] bank accounts to establish his earnings position. No such application had been made. In the absence of such evidence, the Tribunal could not conclude on the balance of probabilities that the allegation was made out".
"such amount as the tribunal considers just and equitable in all the circumstances having regard to the loss sustained by the complainant in consequence of the dismissal, in so far as that loss is attributable to action taken by the employer".
She submitted that, in carrying out this inquiry, the beliefs - whether or not reasonably held - of GNT as to any matters of misconduct it alleged against Mr Barter were irrelevant. She said that the tribunal was here erroneously importing into its considerations of the assessment of the quantum of the claim certain of the considerations relevant to the different question whether the dismissal was reasonable.
"On the face of it [Mr Barter] had plausible explanations of what had occurred. Thus, in the absence of further evidence, the Tribunal could not conclude that there were reasonable grounds for [GNT's] belief in [Mr Barter's] misconduct"