At the Tribunal | |
On 28 January 2005 | |
Before
THE HONOURABLE MRS JUSTICE COX
SIR ALISTAIR GRAHAM KBE
BARONESS M T PROSSER
APPELLANT | |
RESPONDENT |
Transcript of Proceedings
JUDGMENT
For the Appellant | MR TOM LINDEN (of Counsel) Instructed by: Messrs. McDermott, Will & Emery Solicitors 7 Bishopsgate London WC2N 3AQ |
For the Respondent | MR STUART BRITTENDEN (of Counsel) Instructed by: Messrs. Thompsons Solicitors Congress House Great Russell Street London WC1B 3LW |
SUMMARY
Unfair Dismissal
Unfair constructive dismissal of an architect where the Employment Tribunal found that changes in her contractual duties required by her employers had the effect of deskilling her as an architect and amounted to a fundamental breach of contract entitling her to resign. Employment Tribunal Decision upheld on appeal.
THE HONOURABLE MRS JUSTICE COX
Reserved Judgment
The Facts
"You will perform to the best of your ability all the duties of this post and any other post you may subsequently hold and any other duties which may reasonably be required of you and will at all times obey all reasonable instructions given to you."
Her duties were set out in a job description dated 7 January 1988, which she worked to from the time of her promotion to the senior position in 1992. This document was entitled "Role Specification, Senior Project Leader ACED". It set out her main duties, all of which she carried out save those referred to at paragraph (d), which were carried out by a quantity surveyor; and those at (i), which she was not in fact required to carry out but which she accepted she could have been asked to perform. The Tribunal summarised these duties at paragraphs 12 and 13 of their Decision but, in view of their importance in this appeal, we shall refer to them in full:
"Aims of the Job
To undertake, within the framework of Departmental and Corporation procedures the overall design, planning and management of major projects which pose particularly complex problems; the monitoring of consultants; the control of Design and Build contracts; all dependent on the procurement method selected by the Department's management.
Main Duties
(a) The post holder will be nominated Project Leader, or ACED Co-ordinator, for major and important projects or for a number of interrelated projects.
(b) Liaison with the Users and other Directorates to ensure that all relevant factors affecting the project are discerned and evaluated.
(c) Responsible for the preparation of feasibility studies, outline designs, budget estimates and target programmes for the implementation of capital projects. This aspect is particularly important when a project is ultimately to be handled by consultants.
(d) Responsible for estimating costs, including obtaining contributions from other Departments and assisting in progressing the project to financial authorisation.
(e) Responsible for the co-ordination of the efforts of other contributing Departments, consultants and contractors in executing the project to agreed cost and time targets.
(f) Responsible for maintaining control of project funds and advising on the possible financial and time impacts of User variations and ensuring that these receive appropriate financial authorisation in good time during both the development and execution stages.
(g) Responsible for keeping Senior Management informed of the state of the project and drawing attention to possible problems that may impact on project cost or progress, or the Corporation's overall plans.
(h) The post holder may be the Corporation's leading expert on a specific area of building and engineering work on broadcasting facilities (eg acoustics) and will maintain contact at the highest level with industry, consultants and advisor committees.
(i) The post holder may control these aspects of a Group's work which call for a measure of standardisation throughout the Corporation and will act as the Departmental contact on such matters seeking senior advice on matters of policy. This aspect may involve the development of new expertise rather than project responsibility.
(j) The post holder will be responsible for staff allocated to him eg Project Leaders, Architects and Engineers.
Required Knowledge and Expertise
He/she should satisfy the requirements for Corporate Membership of an appropriate professional Institution. The post holders should have a deep understanding of the requirements of broadcasting building facilities. He/she must have considerable experience of substantial capital project works and be able to communicate and motivate a range of professional staff, consultants and contractors. This calls for qualities of diplomacy and management skills of a high order."
"Preliminary services:
A Inception – discuss the client's requirements including timescale and costs, give general advice on how to proceed.
B Feasibility – carry out studies to ascertain the feasibility of the client's requirements
Basic services:
C Outline proposals – with other consultants, analyse the client's requirements, prepare outline proposals and an approximate cost for preliminary approval.
D Scheme design – with other consultants, develop a scheme design, prepare a cost estimate, give possible start and completion dates. The scheme is designed in sufficient detail to allow the client to agree the spatial arrangements, materials and appearance. Make where required a planning application.
E Design detail – with other consultants develop the scheme design, obtaining the client's approval for type of construction, qualify of materials, coordinate any design work done by consultants, specialist contractors, sub contractors and suppliers, obtain quotations in connection with specialist work. Carry out costs checks where necessary, advising the client of the impact of any subsequent changes on the cost and programme. Make applications for building control and other statutory requirements.
F & G Production information and bills of quantities – with other consultants, prepare production information including drawings, schedules and specification of materials and workmanship; provide information for bills of quantities, information completed in sufficient detail to enable a contractor to prepare a tender.
H Tender action – advise and obtain the client's approval to the list of tenderers. Invite tenders from approved contractors, appraise and advise on tenders submitted.
J Project planning – advise the client of the contractor and the responsibilities of the client, contractor and architect under the terms of the building contract and arrange for it to be signed by the client and the contractor; provide production information as required by the contract.
K Operations on site – administer the terms of the contract during operations on site; visit the site as appropriate to inspect the progress and quality of the work; with other consultants make regular financial reports to the client including any variations on the construction cost.
L Completion – administer the terms of the contract relating to the completion of the works; give general guidance on maintenance; provide the client with a set of drawings showing the building services."
"22. The Tribunal took into account that the Applicant's first duty was to be project leader or ACED coordinator for "major and important" projects. Furthermore, the first "aim of the job" was to undertake the "overall" activities necessary for "major projects". We took into account as well that, although the specification did not appear expressly to require her to undertake all RIBA work stages, she was instructed almost invariably to undertake them. The "procurement method" selected by management for the projects she was selected to lead was very largely the full service method.
23. Given the terms of the specification, the depth of her expertise and experience, and the work she was actually assigned at the BBC, we found that her principal contractual duty was to lead on large or complex projects in which she would have a hands-on role from inception to completion. Although the BBC could, and on occasions did assign her to projects that fell short of that role, the parties intended those projects to be a secondary or subsidiary part of her work. Alternatively, we found the duty was incorporated into her contract by custom and practice. At the time the parties entered into the contract, they must have intended to incorporate such a term, which did not contradict the express terms, and was required in order to give business efficacy to the contract. In the absence of such a term, the BBC may not have been able to require the Applicant to undertake those projects. Such a term, furthermore, was reasonable and, by the parties' conduct over a substantial period, it was established, well known, and certain."
"5 That way of deciding on a redundancy does not wholly accord with the statutory definition, and there was no evidence that the BECTU agreement was incorporated into the Applicant's contract of employment. In fact the contractual redundancy "agreed statement" simply recites the statutory definition as its own. Nevertheless, the parties acted in accordance with the agreement throughout the events leading to the Applicant's resignation, as if it were a contractual term, and they premised their evidence and arguments upon it before the Tribunal. We took into account as well that it is more advantageous to employees than are the statutory provisions.
6 In the circumstances, the Tribunal took the view that the 50% question was irrelevant to determining whether any variation by the Respondent of the content of the Applicant's work amounted to a fundamental breach. The issues were whether the disputed content was contractual and, if so, whether any variation of it by the Respondent amounted to a fundamental breach.
7 However, in fairness to the parties, when we considered whether the Applicant may in fact have been redundant, as she contended, we did so in accordance with the terms of the BECTU agreement. Thus the issue for determination was whether the Respondent varied the content of the Applicant's work by more than 50%, because its business requirements for her to carry out the unvaried work had diminished. On everyone's view, working out the percentage change had to be a fairly subjective exercise, and we bore in mind Mr Youngson's frank acknowledgement on behalf of the Respondent that our decision on the point was likely to be a matter of "impression".
"30 After the transfer in November 2001, the Applicant was not assigned any full service projects. The Respondent had framework agreements with external consultants, and typically used those for all but the early work stages. The financial value of her projects declined significantly, to an average of £0.58m, although a £7m project, for which she did work stages A-D before it went to external architects for detailing, was cancelled. Her time sheets show that her time was not being fully utilised. She said that, insofar as she was appointed as lead designer, she did only the scheme design, and that she had no real control over the detailing, as she would have had at the BBC. She said, "If the external architects came up with detail I wouldn't do, I couldn't change it." She was not the only architect affected. The number of BBC projects coming into the department was significantly fewer than anticipated before the transfer. Furthermore, the team were not assigned to any other work in the Respondent's very large property portfolio, although they had been assured that it was likely to be available.
31 Mr Lucey gave evidence that had the Applicant not resigned, one of the projects to which she was assigned was full service, and on another three she would have worked "from inception to completion". That was contrary to the Applicant's evidence that the projects she did for the Respondent were in fact carried out, after the initial stages, by external consultants. On two projects, she was assigned at stage K. It did not appear necessary for us to decide this dispute. Our task was to examine the position at the time of the Applicant's resignation. There was no dispute that, at that time, she had not undertaken any full service project. Furthermore, she did not believe the Respondent's assurances that its intention was for the architects to undertake the full range of architectural duties."
"35 It appeared to the Tribunal that Mr Lucey perhaps missed the point of the architects' anxieties. The Applicant did not deny that, in the course of a full service project, a number of tasks were managerial in nature, and her role specification and the RIBA list show it to be the case. What concerned the architects is that they perceived their duties for the Respondent were becoming wholly or largely management duties, that they were no longer "someone involved in the project" as an architect, but as a manager of architects. The Applicant's unchallenged evidence was that, if she was not involved in work stages E-H, detail design, product information, tender action and project planning, then her specialist knowledge and skills would soon be obsolete. Furthermore, coming in only at stage K, contract administration, would be difficult because she would not [be] sufficiently familiar with the requirements of the particular contract."
"Effective use of skills and experience within the workforce and appropriately designed posts to deliver contractual requirements; an optimum balance between the use of in-house and external resources to best provide the range of services demanded by the customer; an appropriately sized team with the ability to respond to fluctuations in work load."
The "key aims" included allowing designers "to respond quickly to changes in volume and a range of customer demands". The "structural considerations" for the proposals included the following:
"…The almost total reliance on in house staff based in London has limited the breadth and responsiveness of the service provided to some customers. The new structure will separate Project Delivery from Project Design… A reduced number of Associates will lead teams undertaking the full range of design work and will focus on design concepts at project inception, specialist design, design control, contract administration as well as delivery of single discipline projects. Design will be undertaken by in house teams or external consultants depending on the location and nature of the work. Contract administration will be undertaken by either the Design or Delivery teams."
"1 Full Service: "Where strategically necessary."
2 Inception. Where necessary to provide strategic advice at the outset.
3 Feasibility: where necessary to undertake studies to resolve options…
4 Presentations: necessary reports and presentations as required.
5 Design audits: as a team, undertake the necessary design audits at key stages.
6 Design standards: to establish, maintain and implement them.
7 Specialist advice: as necessary on technical matters, eg, procurement, contracts, construction failures.
8 Troubleshooting: As required, investigate problems and advise."
This list was not fully inclusive but was said to give "an indication of the core functions and skills required". The goal was said to be "the marriage between design and business…a redefinition of the team's core skills and obligations…" The Tribunal found that this strategy paper was not distributed until December 2002 and was then distributed only to the six retained architects.
• "To be a professional architectural specialist with a proven and demonstrable track record in a specified area of architectural expertise.
• To contribute to management and resource planning of architectural expertise and advice.
• To ensure standards of conduct, workmanship, quality and health and safety.
• To be a source of expertise.
• To assist the Associate in selection and monitoring of consultants.
• To assist the Associate in drafting policy on methods and standards.
• To contribute to health and safety within the organisation.
• To be the lead designer for defined projects and coordinator for specified projects.
• To maintain contact with industrial, commercial and professional bodies.
• To ensure contract documentation is prepared so as to minimise dispute.
• To assist the Association in selection and training of new staff.
• Any other duties considered by the Associate to be consistent with grade and general responsibilities of the post.
• To undertake a full range of professional architectural functions. This point was followed by the list of functions in Mr Lucey's confidential August document set out in paragraph 48 above. The one change was that Full Service was moved from 1) to 8)."
The new list of functions was therefore as follows:
"1 INCEPTION: Where necessary, to provide strategic architectural advice including design concepts at the outset of a scheme to ascertain that the project is correctly defined, the brief clearly resolved and the correct architectural resource appointed.
2) FEASIBILITY: Where necessary to undertake various design studies to resolve options and clarify the clients' intentions, aspirations and requirement. This will include the preparation of design proposals, analytical problem solving balanced with professional experience and knowledge of the clients business.
3) PRESENTATIONS: Prepare necessary reports and presentation materials as required.
4) DESIGN AUDITS: To undertake the necessary design audits at key stages to ascertain the brief, design and best practice have been met.
5) DESIGN STANDARDS: To establish, maintain and implement design standards for all construction work both internally and externally in accordance with industry best practice.
6) SPECIALIST ADVICE: To advise as necessary and required on technical matters within the discipline, e.g. procurement, contract advice, construction failures etc.
7) TROUBLESHOOTING: As required to investigate problems and advise at any stage in the construction process including post-contract.
8) FULL SERVICE: Within set criteria undertake full professional architectural service where this is strategically necessary on business, broadcast, criticality or professional grounds. The high level of interaction with the client during implementation will underpin the professional skill base."
Following the list of functions was a list of seven specific health and safety responsibilities.
"68 After detailed consideration, we found that the duties in the new job description were substantively different from those in the old one. Where the old description made the Applicant "responsible" herself for carrying out or assigning the various tasks, the new description required her to "contribute" to a task, or to "ensure" that a task was carried out properly, or to "assist" the Associate in carrying out a task. We found further that, as the Applicant contended, the duties generally, although an architect might ordinarily discharge them, appeared substantially managerial in nature. The hands-on duties appeared to have been largely omitted. We did not overlook that the old description required the Applicant to undertake inter alia the "…management of major projects", but we found that, in the context of her contractual work at the BBC, her managerial tasks were carried out when necessary in the course of her full service role; managerial tasks were not the substance of her role.
69 It appeared to us that Mr Lucey had, on business criteria rather than on consideration whether or not the Respondent was entitled to vary the Applicant's contract in such a way, selected certain tasks from the many, set them out as "main duties", and omitted the remainder. We found that he thereby transformed the Applicant's contract from one that required her principally to undertake all the hands-on tasks of major projects, to one that required her to undertake only the specified duties, and we bore in mind that "any other duties" got 0% on both sides of Mr Lucey's chart. It appeared that if the Applicant had been so minded, under the new contract she might have refused to undertake more than a very few large, full service projects, she could have relied on the Respondent's representation that large projects would be carried out by external architects, on the placement of full service at number eight on the list of functions, and on her description as lead "designer". We noted too that the Respondent never explained or set out what were the "set criteria" for carrying out full service projects, nor when it might be "strategically necessary" to do so, nor did it expand on what the "defined projects" might be on which the Applicant would be lead designer. Such terms might mean anything or nothing. In any event, they do not indicate that the Respondent intended the Applicant to be regularly working hands on.
70 Further, where the new job description required her to be the lead designer, the old one required her to lead on major full service projects, and we noted the Respondent's intention that the architectural team would "emphasise" inception and feasibility, with larger projects being carried out by external architects either alone or together with the in house team. We took into account the Respondent's intention that the design function should "not become eroded by requiring all staff to undertake all functions". We took into account that the "full range of professional architectural functions" set out in the new description do not appear to reflect the full service duties in the RIBA list, and that "Full Service" appeared last on the numbered list. No duty in the new description appeared to require the Applicant to undertake work stages E-H, and it was just those omissions about which the Applicant complained. It did not appear to us on the evidence that a lead designer would be responsible for detailing, production information, tender action and project planning, and it was undisputed that the Applicant had done no such for the Respondent. We noted in particular that the Applicant's and Mr Lucey's tables agreed that design and construction should get the highest percentage, whether of effort or share of responsibility, under the old description, whereas lead designer got the highest percentage under the new in Mr Lucey's table.
71 Moreover, the duties numbered 3) through 5), and 7), appeared to us to have no equivalent, as distinct tasks, either in the old job description or the RIBA list. They were tasks an architect might carry out in the course of a full service project, but they were not the substance of any duty in the description on the list. We took into account as well the Applicant's undisputed evidence that, if she were not involved in work stages E-H, the duties at 4) through 7) would become progressively more difficult as she became progressively out of touch with developments in her field. We found that, if the Appellant worked to the new job description in the way proposed, she was likely to become deskilled in the way she contended. The new job description set out a different role to the one she performed in accordance with the old description."
"79 All four grievances were heard together on 15 December 2002. Mr Shields, with Mr Goldacre attending, conducted the hearing and Mr Lesslie represented the architects. Mr Shields said in evidence that no one took notes: "I believe I was able to retain the information." Mr Goldacre, however, told us he did take notes, but they had been "mislaid". In an event, no notes were available to the Tribunal.
80 Mr Shields's focus was the question of redundancy, ie, whether the role changes amounted to more than 50%. He told us the grievance hearing was "a listening exercise" that took an hour or less. He said he asked maybe half a dozen questions, probably most about "what an architect does" from the RIBA full service list. He said, as he is not an architect, it would be "difficult to say I understood all the points. I believe I had a grasp. I don't think I needed to be an architect to make a decision." He believed he was best placed to deal with the grievance, "as I was able to stand back from the situation and make an objective judgement," although he needed assistance, "to appreciate the technical points." He had not seen Mr Lucey's table before the hearing, and it was not mentioned. He did not believe there was any mention of "the 25% change". Neither had he seen the BECTU Redundancy Report, but he knew the rest of the architects had expressed concerns. So far as he understood it, the Applicant claimed her position was redundant because, "there would be no design element in her role…"
81 The Applicant relied on a pre-prepared document that consisted of the RIBA list, plus her comments on each of the duties in the new senior architect job description. Under "8) Full Service", she wrote: "What clearly is missing are the following stages identified by the RIBA as being key to the role of an Architect: detail design, production information, tender action, project planning, site supervision, completion." The Tribunal found that Mr Shields's view of the Applicant's claim was significantly too narrow, and that that view was likely to have informed his subsequent discussion with Mr King and Mr Lucey, and thus his decision.
82 Mr Shields accepted that it was not possible for him to make decisions on the grievances without further investigation. He therefore spoke to Mr Lucey and Mr King. He did not believe he showed them the architects' various documents, but said, "I put across to them what the Applicant said". They talked about the 50% issue on a "generic basis", and then about each grievance. The four architects made different points, but "with a consistent approach that the job had changed by more than 50%." The three managers talked for about an hour and a quarter altogether, and for the first time Mr Shields was made aware of Mr Lucey's table: "He walked me through it." He told us, "I preferred Mr Lucey's analysis…because he is an architect, and he worked in the BBC, so he understood the role of an architect", and in particular, "Mr Lucey had a better view of what the new role would entail", although he knew Mr Lucey took an opposing view to the Applicant's.
83 Mr Shields did not go back to the architects to get their views on the matter, "Because I believed I had the evidence to answer the grievance." He reread the Applicant's documents. "They did not show percentages, so I took Mr Lucey's chart, and I used that. I would have accepted Mr Lucey's information whatever, as he had held a supervisory role…" In his statement, Mr Shields said: "Indeed, Norman Lucey was the only person within LST who could assist me with the extent to which what Jane Thornley was being asked to do now differed, or did not differ, from what she had done at the BBC."
84 On 28 January 2003, Mr Shields wrote to the Applicant that, after hearing her grievance, he had decided that her position was not redundant. He testified that it was a standard letter to all the architects whose grievances he heard. In the letter he said, "I acknowledge that to a degree there is a shift to Architectural duties that are concerned with project management and reviewing the work of other external Architects under our framework agreements. This is more apparent in the senior role although I understand from Norman Lucey that for a number of years prior to your transfer to Land Securities Trillium this had always been part of the Architects responsibilities…Managing advising and controlling the work of other contributors to projects is an activity that is consistent with an Architect's responsibilities and is by no means a unique arrangement…The analysis conducted as part of the consultation exercise quantifies that the shift in role is at most 25% for the Senior Architect…This analysis was reviewed independently by the Construction Management Director."
85 The Applicant and Mr Lesslie testified that the letter contradicted what Mr Shields expressed during the grievance hearing. Their evidence was that Mr Shields said, as there was more than a 50% job change, there was a redundancy situation. Mr Shields denied saying it. In her resignation letter, responding to Mr Shields's, the Applicant wrote, "I am surprised that you have completely reversed the opinion you expressed at our meeting after I had explained my position when you agreed there was more than a 50% job change and that this was therefore a redundancy situation." In his reply Mr Shields wrote, "…I did not express this opinion."
86 The Tribunal took into account all that evidence, but also Mr Shields's and Mr Goldacre's contradictory evidence regarding whether or not notes were taken at the grievance hearing. In the circumstances, it concerned and surprised us that, if notes had been taken, Mr Goldacre subsequently "mislaid" them. We found that Mr Shields did make the admission attributed to him by the Applicant and Mr Lesslie.
87 On 13 January 2003, the Applicant wrote to Mr Shields giving notice in accordance with her contract. In addition to the passage set out above, she wrote, "I do not consider that you have dealt adequately with my grievance. I understand from reading your letter that the entire analysis has been done by Norman Lucey and Roger King, neither of whom can be considered as independent as they designed the disputed new structure…the issues which concern me directly…have not been addressed namely: the loss of the design, development, tendering and job running processes which were all integral parts of my previous role…the new role which is being imposed on me fundamentally breaches my contract as I was employed by the BBC as an architect yet I am currently being denied the opportunity to practice all the necessary skills of an architect. I consider that I am entitled to resign without notice…" Her last day was 12 May 2003.
88 In accordance with the evidence and previous findings, the Tribunal found that the effective cause of the Applicant's resignation was the Respondent's imposition of variations to the content of her contractual work."
The Tribunal's Decision
"94 The Respondent, by imposing the new job description on the Applicant, fundamentally breached the term of her contract that her principal duty was to lead on large or complex projects in which she would have a hands-on role from inception to completion. In effect, as we found, the Respondent thereby required the Applicant to cease doing her principal job and to take up a new one. The impact of the alteration was that, over a foreseeable period of time, the Applicant would be deskilled. If she did not undertake, in particular, work stages E-H, she would soon be out of touch with the rapidly evolving technology, etc. inherent in her specialism, and of course hers was not a lonely voice. Her colleagues came to the same conclusion. Thus, by imposing the new role on the Applicant, the Respondent evinced an intention not to be bound by her contract (Hilton v Shiner).
95 The flexibility clause in the Applicant's contract did not entitle the Respondent to change the content of her work so substantially as to change its nature. The Applicant was required to undertake "all" the duties of her post, not "some" or "any" of them as directed from time to time, "and" such other duties as were reasonably required. The "other duties" were additional to all the duties of her post, not a substitute for them and, on the Respondent's account set out in Mr Lucey's table, she had not been required before the transfer to undertake any such additional duties, nor would she be required to undertake them after the transfer, so it cannot be said that the new duties fell within the flexibility clause. Further, it cannot be a reasonable requirement that she discharge duties so different from those of her original contract that the effect would be to deskill her.
96 Given our finding that the effective cause of the Applicant's resignation was the imposition of the new job description, and the conclusions set out above, it follows that the Applicant was entitled to resign and to be treated as having been dismissed. She did not "jump" too soon, because her experience working for the Respondent over fourteen months was that its assurances of continued hands-on work were not founded in reality. Up to the time of her resignation, she was assigned no full-service projects, and her experience was that the projects on which she worked were contracted out to external architects after the early stages, or that she was assigned at the end of the process, and she knew that that way of working was the Respondent's express intention in the proposals and clarifications, in Mr Lucey's strategy paper, and at the consultation meetings. Moreover, had she waited to see, she would have been at risk of being taken to have affirmed the new contract. As Lord Denning MR said in Western Excavating v Sharp, an employee "…must make up his mind soon after the conduct of which he complains for, if he continues for any length of time without leaving, he will lose his right to treat himself as discharged."
97 Neither did the Applicant continue too long. She resigned within two weeks of the decision on her grievance, ie, when it became clear that the Respondent had no intention of abiding by the contract.
98 The Applicant was accordingly constructively dismissed.
99 The Respondent's reasons for thus dismissing the Applicant was that its business requirements for her to carry out the unvaried work had diminished, ie, her dismissal was attributable to redundancy. The Respondent did not require architects to carry out major, full service projects. It said as much. For that reason it substantively changed both her contractual duties and her actual functions, and we did not construe Murray as precluding consideration of the issue by way of those factors. It certainly did not say that we were permitted to ask only if the Respondent's requirements "for employees" had diminished.
100 The Tribunal concluded further the new job description entailed a change in her duties of more than 50%. We did not found that conclusion solely on the Applicant's table, although we took it into account, but we took into account as well that her union reps assessed the change as more than 50% and they, unlike Mr King and Mr Shields, had substantial experience assessing such change.. Moreover, as we found, the new description created a different role to that in the old one. In the new one, the Applicant was left with only a residue of narrow and sometimes vague duties. Thus, on the evidence, our considered view, our "impression", was that more than half the content of the Applicant's old duties changed or disappeared. Accordingly, she was redundant within the meaning set out in the BECTU agreement.
101 Further, we took the view that the Respondent was wrong to rely only on Mr Lucey's assessment, and not just because he was the begetter of the new description, although that ought to have been a consideration. Of equal significance, the Respondent plainly overlooked the obvious fact that, like Mr Lucey, the Applicant also worked for the BBC for many years, and that she too had supervisory experience. That experience is, after all, what they prayed in aid to argue that the management duties they proposed for her were nothing new. Likewise, they overlooked the expertise of the union. We considered that those failings were the hallmark of the Respondent's consultation process, and a fortiori of the grievance procedure.
102 The grievance hearing itself was seriously flawed. Mr Shields had seen none of the material on which Mr King and Mr Lucey based their view. It is little wonder, then, that his impression was a change exceeding 50%. More significantly, although he knew that the 50%+ criterion was the issue, he did not ask any questions of the architects to get their view. A grievance hearing, like a disciplinary hearing, is to decide the matter at issue on all the evidence, and it must be for the person with conduct to elicit crucial evidence if it is not presented by a party. Mr Shields, however, on his own account, had first to understand "what an architect does." He was not in a position to ask relevant questions. In those circumstances, not to go back to the Applicant and her colleagues for their view on what he subsequently learned about what an architect does, with the material in support, and then to act only on that new knowledge, is wholly inadequate. As Mr Shields candidly told us, he would have accepted Mr Lucey's view "whatever", because Mr Lucey was "the only person" who could assist. In effect, he concealed from the architects that, whatever their evidence, regardless of their arguments, he would delegate the decision to Mr Lucey.
103 It is perfectly plain from our findings and our conclusions that the new job description was not an offer of suitable alternative employment.
104 It follows that, in all the circumstances, it was not fair for the Respondent constructively to dismiss the Applicant for redundancy. Her Application succeeds."
We shall set out their findings as to Remedy later on, after determining the issues arising from their decision on Liability.
The Issues on Appeal
(1) The Contract of Employment and Constructive Dismissal
(A)
(1) Clause 1 of the contract (see paragraph 5 above) authorised the Appellants to require the Applicant to undertake all or any of the duties of her post, and thereby conferred a power on the Appellants to require duties from her, rather than a right on the Applicant to undertake those duties. That clause contained further flexibility in that it permitted the Appellants to require her to perform "any other duties which may be reasonably required of you", referring to duties other than the duties of her post which were set out in the job description. This considerably widened the Appellants' discretion and, on its true construction, the only limitation on the additional duties which might be required of the Applicant was that they had to be "reasonably required". He accepts that this requirement of reasonableness would involve consideration of whether the additional duties were so different from those in her original contract that the effect would be to deskill the Applicant. However, contrary to the Tribunal's view, it did not follow from the fact that the change of duties would deskill the claimant that they were necessarily not reasonably required. Determination of the reasonableness issue also required the Tribunal to consider the interests of the Appellants, which they erroneously ignored in reaching their decision that the changes were not reasonably required.
(2) In theory the Applicant could have argued that the Appellants' discretion was not sufficiently wide to cover the changes which were made or that, even if they were within the scope of the contractual discretion, that discretion had to be exercised in accordance with the duty of mutual trust and confidence implied into the contract by law. However, she did not so argue before the Tribunal and with good reason. Such arguments would have presented her with a very high hurdle to surmount, given the wide contractual discretion there was in this case. Further, breach of this term would have required her to demonstrate that the employers acted without reasonable or proper cause. In fact, as the Tribunal found, the Appellants had rational grounds for the way in which they approached the restructuring exercise and the services which the Applicant was to provide in the new regime. Further, a number of authorities emphasise the importance of the scope of the contract in deciding whether changes in job content amount to a fundamental breach; and they suggest that the employee has an onerous duty to co-operate within the terms of his or her contract of employment. Mr Linden relied in particular in this respect on the cases of Nelson v BBC [1977] ICR 649; Cresswell v Inland Revenue [1994] ICR 508; and Peter Carnie & Sons Ltd v Paton [1979] ILR 260. Whilst there have been decisions in which changing the job content of the employee has been held to amount to a fundamental breach of contract, these have been cases where the scope of the contract was clearly limited, there was no flexibility clause or no job description, and the changes were clearly fundamental. See for example Hilton v Shiner limited [2001] IRLR 727 and Coleman v S & W Baldwin [1977] ILR 342. The Tribunal relied on these authorities, one of which (Hilton) was not in fact cited by either party. In doing so they misconstrued the Applicant's contract.
(3) In relation to the 1988 Role Specification, or job description, the aims of the job included "the monitoring of consultants" and "the control of Design and Build contracts", both of which were essentially managerial or administrative roles and therefore clearly covered the functions about which the Applicant complained. Further, they were said to be "all dependent on the procurement method selected by the department's management". Management therefore had a discretion as to the procurement method which would be selected for particular projects and this in turn would affect the role carried out by the Applicant. The contracting out which the Tribunal found to have occurred was therefore expressly contemplated and permitted by the contract.
(4) Similarly main duty (a) provided that the Applicant might "be nominated Project Leader or ACED Co-coordinator for major and important projects or for a number of inter-related projects". The contract therefore contemplated that she might be a project leader or a departmental co-ordinator for major and important projects, that is she might not have a hands-on role in relation to such projects. Furthermore, she might also be co-ordinator for a number of inter-related projects, which were neither major nor important. At paragraph 22 of their Decision the Tribunal failed to take this into account when concluding that the Applicant's principal contractual duty was to lead on large or complex projects. The contract also contemplated, at main duty (c) that, projects might be handled by external consultants, which was the Applicant's main complaint. Further and generally all of the listed main duties involved essentially a managerial, administrative or co-ordinating function, and included a requirement that she communicate with and motivate a range of professional staff, consultants, and contractors. Finally, whilst the job description provided that the job holder should satisfy the requirements for corporate membership of an appropriate professional institution, the Tribunal erroneously described this as a main duty (k) and treated the RIBA standard form of agreement as if it was part of the Applicant's contract of employment, when it was not.
(5) The Applicant's contract therefore conferred on her employers a wide discretion to require her to carry out a wide range of duties, including those of which she subsequently complained. Her complaint was essentially that, in future, the emphasis of her work would shift substantially in favour of the managerial aspects. However this could not amount to a fundamental breach of her contract of employment because the duties were within the scope of the contract. The Tribunal's conclusion to the contrary was an error of law.
(B)
(1) In order to overcome this difficulty therefore the Tribunal sought to introduce into the Applicant's contract a rigidity which was not in fact there. At paragraphs 23 and 94 they adopted the device of grafting on to her contract a new or additional term that "her principal contractual duty was to lead on large or complex projects in which she would have a hands-on role from inception to completion". There was no basis for such a new term. Mr Brittenden, representing the Applicant below, never contended that such an additional term had been incorporated by agreement. The term appears to amount to a variation in the terms of her contract but, on the evidence, the parties had never agreed to vary the contract. The express terms did not give priority to any particular duty or limit the projects or the role the Applicant might have in relation to them. The Tribunal therefore went off on a frolic of their own. If, on the other hand, the Tribunal were construing the contract as including such a term, this amounted to an error of law. In paragraph 22 the Tribunal erroneously had regard to the subsequent conduct of the parties in determining what had been agreed between them at the time the contract was entered into.
(2) Alternatively the Tribunal held that such a term was to be implied into the contract by reason of custom and practice, which had never been contended for by Mr Brittenden. The Tribunal clearly erred in implying such a term in the circumstances, in particular when it was inconsistent with the express terms of the contract and fettered the contractual discretion which the Appellants had.
(C)
Alternatively, the Tribunal failed to adopt a rational and consistent approach to the question whether, if there were breaches of the Applicant's contract, the changes which had taken or would in future take effect were so fundamental as to enable the Applicant to resign and to complain of constructive dismissal. In this respect they disregarded the fact that in April 2001 she was assigned the BBC Norwich project (see paragraph 24 of the Reasons), which was substantial, but in respect of which her role had not been hands-on. At paragraph 66 the Tribunal erroneously failed to take this into account. They also disregarded the fact that, on the Applicant's evidence, one of the projects undertaken by her prior to her transfer to the Appellants' employment was a Design and Build project for BBC London. Similarly, in relation to the Applicant's view that she had not been and would not in future be assigned full service projects, it was clearly relevant to decide whether Mr Lucey was correct when he said that, if she had not resigned, one of the projects to which she was assigned would have been on a full service basis and, on another three projects, she would have worked from inception to completion. If that was right her complaint that she would necessarily be deskilled if she remained in their employment would be seen in a very different light. However at paragraph 31 of their Decision the Tribunal erroneously failed to decide this issue and to take it into account.(D)
Alternatively the Tribunal's findings at paragraphs 68-71 were perverse. It was not the case that the Applicant's hands-on duties had been largely omitted, or that Mr Lucey had selected certain tasks from the many, set them out as main duties, and omitted the remainder. The new job description expressly provided that the architects would undertake a full range of architectural functions and listed the functions as including full service. None of the hands-on duties had been omitted. Accordingly the Tribunal's view that Mr Lucey transformed the Applicant's contract from one that required her principally to undertake all the hands-on tasks of major projects, to one that required her to undertake only the specified duties, was perverse, as was their view that the new job description set out a different role to the one she performed. In this respect the Tribunal erred in relying on the case of Hilton as this was a case in which the contract of employment contained no flexibility clause and there was no job description in existence. In any event the parties were not given an opportunity to make submissions to the Tribunal about this authority.We have considered all these submissions carefully but, having regard in particular to the Tribunal's findings of fact in this case, we find this analysis of their Decision unpersuasive for the following reasons. We agree with Mr Brittenden that, in examining the validity of Mr Linden's submissions, the starting point is the context for this particular contract of employment, which we regard as being of considerable importance in this case. This Applicant is a highly qualified and highly skilled professional who had, throughout her employment as an architect, exercised the skills of an architect in the work she was required to undertake and who had thereby satisfied the requirements for continued membership of her professional institution.
"It is a basic principle of contract law that if a contract makes express provision (as clause 8 did) in almost unrestricted language, it is impossible in the same breadth to imply into that contract a restriction of the kind that the industrial tribunal sought to do."
must therefore be read with the particular contractual term under consideration in mind.
9. …"It is quite clear on the evidence that not only were the buying duties from which Mr Coleman was removed the most interesting and enjoyable ones, and ones to which he attached considerable importance both in terms of job satisfaction and in terms of prestige, but that from a trading point of view they must have been very important; because, as far as Covent Garden Supply Co Ltd as opposed to Baldwins is concerned, he did virtually all the buying and therefore was responsible for the procuring of all the merchandise which it was the business of the company to sell. One has only to state this to see that, on any view of it, it was an important part of the functions of his job which were removed from him.
10. It is perfectly true that the employers had not gone on, as they might have done had Mr Coleman not walked out, to require him to undertake new and additional duties; which, as they would have been new, he could only have been required to undertake if he had consented. It may be that that was the thought which the Industrial Tribunal had in mind. While we appreciate that, it seems to us that there is a more positive way of looking at the matter, and that the correct and positive way of looking at it is this. Here is a man who had been employed by this firm for 36 years or thereabout and who previously had undertaken as part of his appointment certain well defined duties, an important part of which had been removed in 1975. He had assented to that. Then in 1976, a further very important part of his duties had been removed, to which he was not willing to assent, thus leaving him with only the residual duties which, although they might be important, were of a very humdrum character. In those circumstances, looking at it positively, it seems to us that even without imposing or seeking to impose other duties the employers had unilaterally changed the whole nature of Mr Coleman's job; that this was in fact a requirement for him to do something fundamentally different. That is not something which without his consent they are entitled to demand. They can ask, they can negotiate, but they cannot do it unilaterally and by way of ultimatum. In those circumstances we think that Mr Coleman was entitled to say, 'No, I am not prepared to continue to serve you on those terms,' and that this is in fact a true case of constructive dismissal where the employers by their conduct have intimated an intention not to be bound by the original and unchanged terms of the contract. We think that Mr Coleman accepted that, and that it was on that basis that he left on 3 September."
In Hilton v Shiner the Applicant had worked in the Respondent's builder's yard for twenty years. His job description had never formally been reduced to writing but his principal job was to serve customers. He dealt with their purchases and payments and any cash transactions. The employers discovered that on three separate occasions a customer had left the yard with goods for which there was no sales invoice. The employers were not satisfied by his explanation and suspected that he had been guilty of acting dishonestly. However, in view of his long service, they decided not to dismiss him, but to transfer him to other work in the yard. He was told that he was not suitable to be employed in a position of trust and would no longer be permitted to deal with customers' payments or any transactions. The Applicant considered he had been constructively dismissed and resigned. The Tribunal dismissed the complaint. The EAT however allowed the appeal holding that:
"Requiring an employee to cease doing what has been his principal job and to take up a new role will almost always be capable of being a repudiatory breach of contract. Whether in a particular case the breach is sufficiently material to be repudiatory has to be judged objectively by reference to its impact on the employee. The question whether the proposed change was justified is a different and distinct question. Once the breach is sufficiently material to be regarded as repudiatory, the motive underlying it becomes irrelevant. Thus, the presence of an allegation of dishonesty against the employee makes no difference.
In the absence of a written job description, it is open to an employment tribunal to determine what an applicant's duties under his contract were by looking at the conduct of the parties over the years. In the present case, given the tribunal's finding that the applicant's "principal job" was "serving customers" and that the work he was to return to was described as a "new role" which did not relate at all to dealing with customers, it was almost impossible to come to the conclusion that there had been no fundamental change in the applicant's job. Since it was not possible to say from the tribunal's reasons how they reached a conclusion which could only be justified with some difficulty, the appeal would be allowed.
Although on remission, it would be open to the tribunal to conclude that there was here no change of duties which was sufficiently material so as to make the termination of employment a constructive dismissal, such a conclusion would be so surprising on the facts that the reasoning followed would have to be clear, cogent and full."
"You will perform to the best of your ability all the duties of this post and any other post you may subsequently hold and any other duties which may reasonably be required of you and will at all times obey all reasonable instructions given to you."
In our judgment this clause in the Applicant's contract of employment, correctly construed, does not grant to the Appellants the wide discretion for which Mr Linden contends. It is substantially different from the clause which was considered by the court in Nelson v BBC. Read as a whole the Tribunal were entitled, in our judgment and for the following reasons, to conclude that the extent and nature of the changes to the Applicant's duties imposed by the Appellants did not fall within the scope of the discretion afforded. Firstly, we consider that the words "and any other post you may subsequently hold" indicate a different post which the parties to the contract may agree that the Applicant will hold, as a result of a consensual variation to the contract, and not a post which the Appellants require her to hold against her will. Secondly, the requirement that she perform to the best of her ability "any other duties which may reasonably be required of you" does not afford the Appellants carte blanche to require the Applicant to undertake any duties they wished her to, but expressly imposes a requirement of reasonableness on the employers' request. Once it is found that the duties required by the Appellants were unreasonably required of her, as the Tribunal found to be the case, the fact that there may have been valid, commercial grounds, as opposed to a wholly arbitrary basis, for the Appellants requiring her to undertake them, cannot in a contract of employment cure the unreasonableness of the requirement insofar as the employee is concerned. Employers will often be able to demonstrate that they have valid grounds, commercially, for example, for redeploying an employee to a wholly different department or location in circumstances which, for the individual employee, would be a wholly unreasonable requirement. Once such a requirement is found to be unreasonable for that individual employee, a reasonable basis for making the request cannot mean that it is "reasonably required" of that employee.
(2) The Reason for the Dismissal
(3) The Fairness of the Dismissal
(4) Remedy
"104 The Applicant's claim for the enhanced redundancy payment is not, with respect to Mr Youngson, a claim in contract. Her claim, although we do not in the event have to decide it, was that she was constructively dismissed by reason of the Respondent's failure to make her redundant and pay her according to the contract. If we had had to determine that claim, we would have concluded that the BECTU agreement does not entitle an employee to be dismissed with a contractual redundancy payment once s/he has demonstrated a 50%+ change of work content. The parties cannot have intended that the employer would be obliged to dismiss an employee in those circumstances.
105 On the other hand, the right to a redundancy payment is statutory, not contractual. Parties to employment contracts may, as here, privately agree that, in the event of dismissal for redundancy, the employee will be entitled to a payment greater than the minimum provided by statute, but that does not affect the employee's right to the payment. Such payments are said to be "enhanced", because they are more than the statutory minimum. "Enhanced" does not signify a different legal nature. Thus, the award we make to the Applicant for the loss of a redundancy payment to which she became entitled upon dismissal for redundancy as defined in the BECTU agreement, is not, although by contract it is enhanced, subject to the cap on contractual damages in the Tribunal.
106 We made a Basic Award to the Applicant of twelve weeks times the statutory maximum of £260, but that sum will be deducted from the redundancy payment to avoid double payment.
107 The Applicant's contractual redundancy payment is calculated as annual substantive salary over twelve, times completed years of continuous service, ie. a month's net salary for every full year of continuous service. The Applicant had twelve full years continuous service. We therefore awarded her £39,778.20 as a redundancy payment.
108 The Applicant's gross pay was £43,491.25 per annum, and her net pay was £3,314.85 per month or £764.97 per week. The period from her last working day on 12 May 2003 to the date of assessment on 9 December was thirty weeks. She was unemployed throughout the period, and there was no evidence that she had not mitigated her loss. She had been anxiously looking for fresh employment. We accordingly awarded her thirty weeks net pay for loss of earnings, a total of £22,949.10. She did not claim benefits, so the recoupment provisions do not apply.
109 We took into account that the Applicant is forty-eight years old, and is not finding it easy to get new work. However, architectural vacancies do exist, and she is an architect of proven ability and long experience. We considered that, within the next three months, she was likely to find a new job. We accordingly awarded her three months' net salary for her future loss of earnings, a total of £9,945.55.
110 Given her leading position and substantial salary, we awarded the applicant £300 for the loss of her statutory rights.
111 In addition, in accordance with the principle set out in Daley v AE Dorsett, we decided it would be just and equitable for the Respondent to compensate the Applicant for the loss of her service-related notice entitlement. We awarded her four weeks' pay, a total of £3,059.88.
112 The Tribunal made a total award to the Applicant of £76,032.73, as per the schedule to this Decision, and we order the Respondent to pay the Applicant that sum."