At the Tribunal | |
Before
HIS HONOUR JUDGE MCMULLEN QC
MR A HARRIS
MR J HOUGHAM
APPELLANT | |
RESPONDENT |
Transcript of Proceedings
JUDGMENT
For the Appellant | MR SONAIKE (of Counsel) Instructed by: Messrs Taylor & Emmet Solicitors 20 Arundel Gate Sheffield S1 2PP |
For the Respondent | MR JULIAN DOBSON (Husband, Representative) |
SUMMARY
Unfair Dismissal and Public Interest Disclosure
PIDA Employment Tribunal made firm findings of fact connecting dismissal to protected disclosure and its judgment was upheld. Nor did it err in the approach to the assessment of compensation. Respondent could not rely on its own wrongful act in orchestrating opposition to Claimant to reduce or cap her compensation and say she would have been dismissed anyway.
HIS HONOUR JUDGE MCMULLEN QC
Introduction
The Judgment
"2 By a notice of appeal dated 27 January 2005, the Trustees appealed against the decisions of the tribunal on the wrongful and unfair dismissal claims; they do not appeal against the other decisions. On 21 February 2005, the Registrar of this tribunal gave notice to the Trustees under rule 3(7) of the Employment Appeal Tribunal Rules 1993 (as amended) that His Honour Judge Reid QC had concluded that the notice of appeal amounted to no more than an attempt to relitigate the factual issues in the case and that there was no error of law on the tribunal's part in making the decisions they did that are now under appeal. As this tribunal can only hear appeals based on alleged errors of law, the judge concluded that it followed that the appeal stood no reasonable prospect of success and that no further action was to be taken in relation to it.
3. The matter now comes before me for reconsideration because the Trustees have exercised their right
under rule 3(10) to have it so reconsidered. Their case has been put to me by Mr Sonaike, for whose careful and comprehensive skeleton argument I am grateful, and who also appeared for them before the tribunal.
4. The Trustees manage a small charity whose aim is to support Somali women living in Sheffield and to provide them with training in English as a second language ("ESOL"). Mrs Dobson, an ESOL teacher, became the Trustees' employee on 1 October 2003. She performed her teaching duties to the Somali women students at the Sheffield College. Her employment was uneventful until March 2004 when Mrs Dobson dismissed
Ms Roda Soulieman from an interpreters' course on which she was a student, she having failed to meet her attendance requirement. Ms Soulieman is the sister of Mrs Amina Soulieman, the manager at the centre. That event did not, of itself, prove to be of materiality in the proceedings.
5. The material events happened in May 2004. The tribunal found that on 10 May Ms Said, another student, informed Mrs Dobson during an ESOL class that Ms Roda Soulieman had mistreated the children at a crèche that the Trustees operated. Mrs Dobson decided that she had to report the matter. In the first instance she relayed what she had been told to Dr Ahmed Gurnah, who was either another employee or an ex-employee of the Trustees, the reason for that choice being her concern that the Centre Manager, Mrs Amina Soulieman, to whom she would ordinarily first have reported the matter, was Ms Soulieman's sister. But Dr Gurnah advised Mrs Dobson to report it to Mrs Soulieman and so she did.
6. Mrs Soulieman investigated the matter. She spoke to her sister, to other students and to parents. She interviewed Ms Said, who denied that she had made any such allegations to Mrs Dobson. The investigations revealed no evidence of any ill-treatment.
7. On 18 May 2004, there was a meeting at which Mrs Dobson, Mrs Soulieman and Ms Said were present. Mrs Soulieman told Mrs Dobson that Ms Said denied making the alleged comments to her. Mrs Dobson read a prepared statement of her account of the incident, after which she was asked to leave the meeting.
8. On 24 May 2004, Mrs Dobson attended a disciplinary meeting with Mrs Soulieman. I quote what the tribunal said of this meeting in paragraph 20 of their reasons:
"…we find that Mrs A Soulieman informed the claimant that she had investigated the allegation which the claimant had reported but had found no substance in it. Ms Soulieman had therefore decided that the claimant had acted unprofessionally and that she was to be dismissed for that unprofessional conduct."
On the same day Mrs Soulieman wrote to Mrs Dobson explaining the gross misconduct for which she was being dismissed, namely (1) making false allegations against a student and failing to evidence it, (2) failing to follow proper procedures, causing damage to another student and to the reputation of the Trustees and (3) breaching confidentiality by informing Dr Gurnah of the allegations before reporting them to Mrs Soulieman. The police investigated the matter as well, but decided to take no action.
9. Mrs Dobson's application to the tribunal followed on 5 July 2004 and the substantive hearing was in December. As Mrs Dobson had less than a year's continuous employment with the Trustees, she had no conventional claim for unfair dismissal, unless it could be made, as she claimed it could, under section 103A of the Employment Rights Act 1996, ("the ERA") which provides:
"103A Protected disclosure
An employee who is dismissed shall be regarded for the purposes of this Part as unfairly dismissed if the reason (or, if more than one, the principal reason) for the dismissal is that the employee made a protected disclosure."
The concept of a "protected disclosure" is defined in Part IVA of the ERA in
sections 43A-43L.
10. The Trustees' case to the tribunal and on appeal is that section 103A will apply only if the true reason, or principal reason, for the dismissal was that – and Mr Sonaike emphasises the "that" – Mrs Dobson had made a protected disclosure. Mr Sonaike submitted to me, as he did to the tribunal, that a dismissal will only be unfair under section 103A if the reason for it is that the employee made the protected disclosure. It is not enough if the reason for the dismissal was one merely related or connected to such disclosure. He referred to London Borough of Harrow v Knight [2003] IRLR 140, a decision of this appeal tribunal, in which it was pointed out, in paragraph 15 of the judgment delivered by Mr Recorder Underhill QC, that the phrase "on the ground that" in section 47B of the ERA, also concerned with protected disclosures, equated to "by reason that".
11. That does not appear to me to provide direct guidance for present purposes, since section 103A includes neither of those two phrases. But Mr Sonaike submitted that it was open to the Trustees in this case to prove, if they could, that their reason, or principal reason, for the dismissal of Mrs Dobson was not that she had made a protected disclosure, but was for some other reason. In principle, I agree, and if the Trustees could prove that I would consider that they would have had a defence to her unfair dismissal claim. Their case was in fact that she was dismissed for gross misconduct.
12. The tribunal's findings of fact were that, despite her denials, Ms Said did relate the matters regarding alleged child abuse to Mrs Dobson; that Mrs Dobson had a "reasonable belief" that the information that she then disclosed to Mrs Soulieman tended to show that a criminal offence had been committed; that she made that disclosure "in good faith"; and that she made that disclosure to her "employer", a conclusion not affected by the fact that shortly before doing so she had, for understandable reasons, first disclosed it to Dr Gurnah. These findings by the tribunal meant that Mrs Dobson's disclosure to the Trustees was a "protected disclosure" within Part IVA.
13. The tribunal then turned to the critical question of whether the reason (or, if more than one, the principal reason) for Mrs Dobson's dismissal was the fact that she had made that disclosure. They said there were no notes of the dismissal meeting, but they did have a document headed "Conclusions" that Mrs Soulieman had prepared, and also the dismissal letter categorising the acts of gross misconduct.
14. The first such act was the making by Mrs Dobson of "false allegations", which the tribunal said they had found to be a protected disclosure, not a false allegation. The second was "failing to follow proper procedure", which Mrs Soulieman had explained as meaning a failure by Mrs Dobson to call in the assistance of an interpreter in order to clarify what Ms Said had said. The tribunal found there was no obligation on Mrs Dobson to do this because she understood perfectly well what Ms Said had said, and that anyway to do so would have breached confidentiality. The tribunal found this alleged act of "gross misconduct" was part and parcel of the protected disclosure. The third alleged act was "breaching confidentiality by reporting the allegation to an ex-employee", a reference to Dr Gurnah. The tribunal found that this did not breach confidentiality and that the seeking of Dr Gurnah's advice was "intimately connected with the protected disclosure". The tribunal were there making the point that Mrs Dobson was rather more sensitive to basic notions of proper disciplinary practice than Mrs Soulieman appeared to be. She apparently regarded it as acceptable for her to investigate an ostensibly serious allegation in which the alleged abuser was her sister. The tribunal concluded that it followed that Mrs Dobson was automatically unfairly dismissed because the reason for her dismissal was that she had made a protected disclosure.
15. Mr Sonaike's submission is that whilst the three categories of reasons were "related to the disclosure" and that "but for" the disclosure Mrs Dobson would not have been dismissed, nevertheless on the tribunal's own findings it cannot be said that the reason for the dismissal was that Mrs Dobson had made the disclosure. The first point made in support of this is that the Trustees' response to the disclosure was not immediately to dismiss Mrs Dobson but to investigate the allegation. With respect, that appears to me to be a point of no substance. Of course the Trustees investigated the allegations – what else could they do? They could not simply there and then decide that there was nothing in it and dismiss Mrs Dobson for making unfounded allegations. My view of that point is that it does not even begin to undermine the tribunal's finding as to the reason for the dismissal after the investigation had been made.
16. The next point is as to the tribunal's finding that the first ground of conduct – "false allegations" – was the protected disclosure itself. What is said about this is that the tribunal have mistakenly concluded that because they found that Mrs Dobson had not in fact fabricated the story relayed by her to Mrs Soulieman, therefore the Trustees could not have dismissed her on the grounds that they in fact believed she had fabricated it. Mr Sonaike referred to the tribunal's findings in paragraph 20, which I have quoted, and said that this was a finding that the, or at least a, ground of dismissal was not the making by Mrs Dobson of the disclosure, but the belief that she had fabricated the allegations so disclosed.
17. Secondly, as to the second ground of misconduct, namely the failure to follow procedure by failing to call in an interpreter, Mr Sonaike said that the tribunal's finding that this was "part and parcel of the protected disclosure" was perverse. It was nothing of the sort: it was an omission to do something which cannot rationally be part of the positive act of disclosure which later followed it. It may have been a reasonable and proper omission; but whether or not it was, the fact remained that it was one of the reasons for the dismissal, being one which could not be characterised as the making by Mrs Dobson of the protected disclosure.
18. Mr Sonaike made the like point in relation to the alleged breach of confidentiality by Mrs Dobson in first disclosing the matter to Dr Gurnah. That disclosure was not itself a protected disclosure and cannot be regarded as part of the disclosure which was protected. In so far as it was a reason for the dismissal, it was one which again cannot be characterised as the making by Mrs Dobson of the protected disclosure.
19. Overall, therefore, Mr Sonaike submitted that the tribunal were in error in finding that the three reasons for the dismissal were either jointly or severally reasons which could be summarised as being "that Mrs Dobson had made a protected disclosure". It is said that, in so concluding, the tribunal misdirected themselves in law, or else had arrived at a perverse decision. Another way of putting the case would be, I suppose, that there was no evidence justifying the tribunal's conclusion that the reason, or principal reason, for Mrs Dobson's dismissal was that she had made the protected disclosure.
20. Having set out and considered Mr Sonaike' careful argument, I find myself in real doubt as to whether His Honour Judge Reid's summary dismissal of the grounds of appeal on the basis that they are merely an attempt to relitigate the facts was justified. I will say no more than that I am satisfied that there is here a real point which deserves to go through to a full hearing by a judge and two members. ..."
He also allowed one aspect of the wrongful dismissal claim to proceed – to which we will turn in due course.
The Respondent's case
"40.9 It is our understanding that it is the tribunal's task to objectively assess whether or not in law and by reference to the evidence and findings a protected disclosure has been made. Clearly the respondents came to a diametrically different conclusion to the one we have reached. Insofar as it is necessary for us to explain why this could have occurred, we think we need say no more than that it was clearly entirely inappropriate for Ms A Soulieman to investigate this serious matter where the alleged abuser was her own sister. There was an inevitable conflict of interest which was likely to give rise to a very high risk of the wrong conclusion being reached and the wrong approach being followed. This is what occurred."
The Claimant's case
The Legal Principles
"29
3) 'by reason that'
Contrary to views sometimes stated, the third ingredient ('by reason that') does not raise a question
of causation as that expression is usually understood. Causation is a slippery word, but normally it is used to describe a legal exercise. From the many events leading up to the crucial happening, the court selects one or more of them which the law regards as causative of the happening. Sometimes the court may look for the 'operative' cause, or the 'effective' cause. Sometimes it may apply a 'but for' approach. For the reasons I sought to explain in Nagarajan v London Regional Transport [1999] IRLR 572, 575-576, a causation exercise of this type is not required either by a 1(1)(a) or s.2. The phrases 'on racial grounds' and 'by reason that' denotes a different exercise: why did the alleged discriminator act as he did? What, consciously or unconsciously, was his reason? Unlike causation, this is a subjective test. Causation is a legal conclusion. The reason why a person acted as he did is a question of fact."
18. In certain cases a question of causation is raised in which it is not enough to ask the question "but for" but to go on and consider further matters. In other words, applying that to our case: if it would have been the position of the Respondent that it would have been dismissed the Claimant in any event then that is a matter relevant to the decision as to the reason for dismissal. See Lord Hoffman in Khan.
19. There is a very strong public interest in the vindication of whistle blowers so that their action is protected. This does not mean that all of their claims and allegations have to be supported. They have to be investigated and provided the disclosure meets the terms of the Employment Rights Act 1996, action against them is unlawful. See for the social policy behind the Act and its application in employment cases ALM v Bladon [2002] ICR 1444 Street v Derbyshire above, our judgement in Lucas v The Chichester Diocesan Housing Association EAT/0731/04, and the approach of Dame Janet Smith in the Shipman Enquiry which adopted evidence given to it by Public Concern at Work.
20. In the assessment of compensation the principle is loss: see s123 of the Employment Rights Act.
"Section 123(1) Employment Rights Act 1996
123 Compensatory award
(1) Subject to the provisions of this section and sections 124, 124A and 126, the amount of the compensatory award shall be 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."
Conclusions
The Reason for Dismissal
The Wrongful Dismissal Claim
"We consider that the statutory protection which Parliament has given to an employee who makes a protected disclosure would be entirely illusory if an argument such as that put forward by Mr Sonaike could succeed. Assuming, on the basis of the limited evidence we heard on the point that the respondent's students were not prepared to be taught by the claimant; that in our judgment was caused by the respondent's mishandling of the inquiry following the disclosure. That situation is unlikely to have arisen if the respondent had dealt with the matter properly. Even if it had occurred in any event, it would have been for the employer to manage the situation and it would have had a duty to protect the claimant from suffering any detriment because a disclosure had been made."
Appeal