EMPLOYMENT APPEAL TRIBUNAL
58 VICTORIA EMBANKMENT, LONDON EC4Y 0DS
At the Tribunal
Before
THE HONOURABLE MR JUSTICE UNDERHILL (PRESIDENT)
MR B M WARMAN
MINISTRY OF DEFENCE RESPONDENT
Transcript of Proceedings
JUDGMENT
APPEARANCES
(of Counsel) Instructed by: Russell Jones & Walker 50-52 Chancery Lane London WC2A 1HL |
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(of Counsel) Instructed by: The Treasury Solicitor’s Department One Kemble Street London WC2B 4TS |
SUMMARY
SEX DISCRIMINATION – Other losses
RACE DISCRIMINATION – Other losses
Appellant gives notice to leave the Army as a result of sex and race discrimination (see [2010] IRLR 471) – During notice period offered a new posting on the basis that it would resolve the childcare difficulties which had given rise to the discrimination claim – Offer not accepted - At remedy hearing awarded compensation for injury to feelings but no compensation for loss of earnings, on the basis that she had failed to mitigate her loss, and no aggravated damages.
Held, dismissing appeal:
(1) Tribunal entitled to find that Appellant had failed to mitigate her loss – Wilding v British Telecommunications Plc [2002] ICR 1079 followed
(2) Tribunal not obliged to make an award of aggravated damages
THE HONOURABLE MR JUSTICE UNDERHILL (PRESIDENT)
INTRODUCTION
2. On 30 April 2007 she commenced proceedings in the Employment Tribunal against the Ministry of Defence (“the MoD”), alleging indirect discrimination under the Sex Discrimination Act 1975 and the Race Relations Act 1976. There was also a claim for unfair dismissal, but it was in due course appreciated that the Employment Tribunal had no jurisdiction to entertain such a claim in the case of a serving soldier, and the claim was dismissed. Her discrimination claims were upheld by an Employment Tribunal sitting at London Central chaired by Employment Judge Gordon, following liability hearings in June and September 2008; and the decision of the Employment Tribunal was itself upheld by this Tribunal in October 2009. The question of liability involved some interesting issues but we need not set them out here; more detail can be found in the judgment of this Tribunal given by Cox J and reported at [2010] IRLR 471. The only specific point that we ought to mention, because it is material to the issues that we have to decide, is that a central aspect of the Appellant’s case was that the immigration rules (for which the MOD as part of “the Crown was” held to be responsible) were insufficiently flexible to allow someone in the Appellant’s position, i.e. a Commonwealth soldier who was a single mother, to obtain the support of a family member: the Appellant’s half‑sister would have been willing to come to this country on a long‑term basis to help look after her child, but she was unable to obtain the necessary leave.
(A) LOSS OF EARNINGS/FAILURE TO MITIGATE
“R SIGNALS & INT CORPS MCM DIV OFFER OF EMPLOYMENT AT BLANDFORD
1. Introduction. You will recall that an offer for you to work at Blandford, the home of the Royal Corps of Signals, was made to you on interview by your present Officer Commanding, Major J E Toze R SIGNALS on Friday 21st September 2007. This letter will set out the details of the offer made by Royal Signals and Intelligence Corps Manning and Career Management Division (from now on throughout this letter referred to as just MCM Div).
2. Outline Career Plan. Move to Blandford as soon as reasonably possible and be employed in Technical Maintenance (TM) Troop. Progress onto your Class One Systems Engineer Technician Training (T1), this would last about 12 months. Then remain at Blandford for a full 36 month Assignment after your T1. The effect of this move would see you stable at Blandford until at least 2012. Your daughter would by then be about 7 years old.
3. The Detail. Given the situation you face presently in London, living in the Greater London area and working in Chelsea Barracks, you find yourself challenged by meeting both childcare and work/duty commitments.
4. Having considered several alternative postings that may alleviate your perceived childcare burden, while at the same time offering you a greater degree of work-life balance and stability, I suggest Blandford as a suitable move for you as you are due to undergo T1 training in the near future and would have to move to the Royal School of Signals, Blandford for that course anyway. You will be aware that the T1 course carries with it a three year return of service obligation that you would have to sign up to before starting that course. This three year return of service period would start on successful completion of that course. This you would serve at Blandford. Given the non deployable nature of being employed at Blandford, I regard this as your best course of action. Having discussed this proposal with you in June, you were not keen on my further action as I could not guarantee this move would take place at the time, for a period of five years duration after you moved. I have since engaged with MCM Div in September and obtained written confirmation (by email on 19 Sept 07) that subject to your application for NTT being withdrawn (here, it would be your action to apply to MCM Div on an AF C 6848 for withdrawal of NTT), then it would be up to MCM Div to consider your application to withdraw NTT, MCM Div were confident (should they decide to retain you) that you could move to Blandford in the very near future and enjoy a five year period of stability. You could settle for a significant period and concentrate on career while being supported. This would see you moving away from Blandford if you applied as such not before 2012.
5. From MCM Div, Maj(Retd) Brian Campbell (94561 3252), OC Support Trade Wing has made this offer to you and this can be found at Enclosure 1.
6. I have made some simple background checks and I can report that Blandford Camp has a school, Downlands School on (01258 453348) should this be required in time. More importantly for you, I can report that the Childcare network at Blandford is strong. The Childcare Coordinator is Mrs Shona Fullerton (01258 454 676). I spoke to her recently and she assured me that there was capacity for your two‑year‑old daughter. I have also visited the Blandford Camp Website at the below URL:
http://www.army.mod.uk/royalsignals/rss/blandford/index.htm
In addition, ARMY Child Welfare Support Information is available at the following URL:
http://www.army.mod.uk/soldierwelfare/familysupport/childws/index.htm
7. Career Implications and working routine. I can find no evidence to suggest that a move to Blandford would have an adverse effect on your career. On the contrary, you will be aware that Signals Office in Chief (Army) (SOinC(A)) himself is keen that the very best officers and soldiers across the Corps are sent to training establishments; here, Blandford as you know is the Phase Two training school for the Royal Signals. That said, working in a training environment will come with its own set of challenges and your time at Blandford, should you decide to go, will not be plain sailing every day. As a soldier and JNCO, you can expect to do your fair share of normal daily working, as well as your share of duties and short deployments on exercise into the local area. The positive here will be that this type of routine can be planned well in advance, and your line managers will endeavour to give you and your peers sufficient notice; this is a reasonable expectation of any serving soldier. As a single mother, you are not alone, and you may meet other soldiers in a similar situation. Here, it is up to you to make friends and together, you may find structuring your work and home/family time easier to manage.
8. Financial Implications. You will be aware that you are entitled to Service Families Accommodation. While I do not know the exact sum you would pay in rent every month, I am confident that you would find it difficult to live more cheaply outside the Army. Travel to and from work would cost nothing as you would live where you worked. The cost of moving your daughter to and from school/child care would also be minimal depending on where you sought this facility. There is medical and dental support for both you and your child on camp. As you know, this is free. Eligible parents can make use of UK Government Child Tax Credits and the childcare element of Working Tax Credits. This can offset the cost of childcare by up to 70% for the least well off families and is well worth investigating further. There is further advice on the HM Customs and Revenue or Service Families Task Force websites. Blandford camp is in my view a ‘one stop shop’ for all your needs in this regard and presents a very cost effective solution to your situation.
9. Your Action. As you are now aware, the CO has reviewed the two Formal Warnings that were issued to you on 07 February 2007 and 17 May 2007. As a result of new detailed legal advice, he has decided that they were procedurally flawed and as such has taken steps to remove them from your file. I now need you to consider this proposal and write back to me with your decision. I would appreciate this reply within the next 14 days.
10. Summary. I feel that having looked at your present situation, and having taken a long term view of both your career and your family situation, I am convinced that a posting to Blandford has the potential to alleviate your current situation. Both the employment opportunity and child care setup is in place and ready for you to make good use of from now until at least 2012. I hope you share this view in that remaining in the Army is of benefit to both your own career and your child’s needs.”
9. On 31 October the Appellant wrote again refusing the offer. Her letter reads as follows:
“RE: R SIGNALS & INT CORPS MCM DIV OFFER OF EMPLOYMENT AT BLANDFORD
Reference:
A. Interview at Chelsea Barracks with Major T Toze.
B. Letter dated 17th Oct 07.
1. In reference A I was informed of an offer being made for me to move to Blandford, after discussions with MCM Division. These discussions were presented to me in the form of a series of e‑mails. This interview was the first any such offer was made to me, contrary to one of these e‑mails. I was given three days in which to make a decision and in an e‑mail dated the 26th September 2007, I informed major J Toze of my appreciation of the offer and my decision to decline explaining my reasons.
2. Having considered the offer and the events and conversations that have transpired in the situation as a whole I decided to decline the offer. As I previously pointed out, though this offer will offer me some degree of stability in the interim it will not solve the problem, it will only cover it. Subsequent to this posting the problem of my implied inefficiency will remain as there will still be a requirement for someone to care for her outside school hours.
3. In reference B, you proposed the exact same offer. You pointed out that I am not alone as a single mother; however, I am unaware of any other single mother in a situation similar to mine. I have considered this along with the financial implication you pointed out. I parental right [sic] and a legal responsibility to ensure my child is cared for and having been informed that the needs of the army come first, I would like to have some pointed [sic] clarified.
4. In paragraphed [sic] 9 of Reference B, you informed me that the Formal Warnings issued to me on 07 February 2007 and 17 May 2007 were procedurally flawed and are to be removed from my file. I would like you clarify to me [sic] where the procedure went wrong and the army policy with regards to the childcare provision for Foreign and Commonwealth soldiers. Can you also confirm whether the issuing of the Formal Warning were [sic] of a discriminatory nature and whether here [sic] is anything in army policy that will or should prevent this type of events [sic] from reoccurring. Your clarification of these points will be greatly appreciated and will help me arrive at a decision.
5. I await your response on the matter at hand.”
“58. Our approach to the question of mitigation is that it is for the Respondent to show to us by evidence and/or submissions that the Claimant was unreasonable not to accept the offer. The test is objective and should be made on the totality of the evidence. This includes the circumstances in which the offer was made and refused, the attitude of the employer, the way in which the Claimant had been treated and also the Claimant’s state of mind. In assessing the question of reasonableness, it is necessary for us to understand why the Claimant made the decision to reject the offer and to consider whether the reasons were unreasonable that we can find a breach of the duty to mitigate. The standard of reasonableness which we apply should suit the circumstances of the case. We would not for example, expect an employee who was angry confused and anxious as a result of an actionable wrong committed by the employer to be able to make a perfect decision. And we need to take into account that if it were not for the employer’s wrong, the employee would not need to make the decision in the first place. For these reasons we should not set the line between reasonableness and unreasonableness too high.
59. The Blandford offer would effectively have ended the indirect discrimination which we have found occurred because it would mean that the Claimant would no longer be particularly adversely affected by the provision criterion or practice which was applied to her. This is because the duties which the Claimant would have had at Blandford and the child care arrangements there, were such that she would be able to care for her child without the need for any assistance from her half sister. So this would mean that in practical terms the Claimant was put back on a ‘level playing field’ with soldiers who were British subjects which was her main concern in the Tribunal proceedings. She was or should have been aware that this was the case. The Claimant had been to the Blandford base and was aware of the facilities there. The letter of 17 October 2007 explained the position clearly and gave her the Blandford camp website address and the Army Child Welfare Service website address. It also gave the telephone numbers of the school and of the childcare co‑ordinator in case she wished to make enquiries. The Claimant was aware that her anticipated duties in Blandford and the child care facilities there were such that it was feasible for her to be posted there and to be able to look after her child too.
60. We are quite clear that the Claimant was reasonable in rejecting Major Toze’s offer made on 21 September 2007, but we think otherwise about the offer of Major Grice made on 17 October 2007. There were two critical differences between the two offers.
61. The first crucial difference was that the offer made by Major Toze was not in writing and so could not be relied on to the same extent as that made by Major Grice. The need to have the offer in writing arose from the unique nature of the offer which was being made. The Claimant was well aware of this. The offer was unique because it was based upon the premise that the Claimant would not be deployed on active service until at least 2012 when her child would then be aged seven. This is because it was to be a five year posting in a ‘non‑deployable’ unit. This was contrary to Queen’s Regulations 9.260 which requires that a soldier must be available for worldwide posting at any time. This also appears from Brigadier Cotton’s guidance on 29 November 2002 which we referred to in paragraph 114 of our preliminary decision on liability. Despite this, we can see from the email on page 169 of the bundle that internally a decision was made that the usual rule could be relaxed in this particular case. The offer involved some positive discrimination of the Claimant. If the offer were to be implemented she would be treated differently from other soldiers because of her particular child care difficulties as a Foreign and Commonwealth soldier. And such difference of treatment was not allowed by the Queen’s Regulations. So the Claimant was right to be sceptical about this offer. As she rightly said in response to the offer, it could not be ‘guaranteed’. She did not believe it would be kept to in the long run. This would mean that in her view she would end up being deployed without any proper arrangement for her child. We would emphasise that the Claimant was not unwilling to be deployed, her concern was more for the welfare of her child.
62. When the offer was put in writing in the letter from Major Grice however, it was put in much stronger and clearer terms than had been put to the Claimant in the meeting on 21 September 2007. Whilst it is true that the five year posting without deployment could not be guaranteed, it would be much less likely to happen because of the letter which was a formal document from an officer with apparent authority to make it. We heard from Major Laycock who emphasised to us that every soldier without exemption should expect to be deployed even if they are given a non‑deployable posting, but he also told us that in the light of the offer which had been made in the letter of 17 October 2007, in reality it was very unlikely that this would happen to the Claimant before 2012 as stated in the letter.
63. When testing the question of reasonableness or unreasonableness for the purpose of the duty to mitigate the Claimant’s reasonable knowledge of the likelihood of deployment is important. She was aware there was no guarantee that she would not be deployed before 2012, but from the terms of the letter a reasonable person in her position would have realised that it was very unlikely that this would happen, as Major Laycock has now told us. In the view of the Tribunal it was a mistake not to test this by accepting the offer of the transfer to Blandford and then see what happened. If she then found herself deployed, despite the additional difficulties as a Foreign and Commonwealth soldier and a single parent, on our earlier findings on liability she would have been able to raise a further discrimination case.
64. The second crucial difference was that the offer made by Major Toze did not deal with the Claimant’s disciplinary record. The Claimant was right that this was a serious omission. We have heard evidence and find that the disciplinary record is one of the things of central importance to the promotion board, and the Claimant was aware of this. When however, the Claimant was told on 15 October 2007 and this was confirmed by the letter of 17 October 2007 that the disciplinary record would be removed due to procedural irregularities, in our view she should have accepted this as a resolution of that particular problem.
65. In our finding, the main reason why the Claimant rejected the offer made on 17 October 2007 was that she did not think the five year posting to Blandford without deployment could be guaranteed, with the consequence as she put it that her child care problem was not resolved. As said above, we are of the view that she was unreasonable in not at least taking up the offer and seeing what happened.
66. At different times in her evidence the Claimant gave other explanations for her decision. One was that she did not have time to consider the offer properly. Another was that she was so advanced in her plans to leave the army that she could not change her mind about leaving. We do not think those reasons played an important part in her decision making.
67. But there was a secondary reason why the Claimant rejected the offer. This was that she was upset by all that had happened, she had lost faith in the army and had lost hope in the system. This is what she was referred [sic] to in her letters of 26 September 2007 and 31 October 2007 when she referred to ‘events and conversations involved in the entire situation’. We agree that the Claimant had every reason to feel this way. The strength of this disillusionment with the army was balanced however, by the Claimant’s love of the army. Despite all that had happened she did not wish to leave the army. This comes from her own evidence and is also demonstrat4ed by her letters of 18 September 2007 sent to the Treasury Solicitor and also the Tribunal showing that she was willing to consider a solution which would enable her to stay with the army. And so it is our finding that although the Claimant did justifiably feel let down by the army, this was not why she refused the Blandford offer, nor did it stop her from making rational decisions about the offer.
68. In addition to this, the Claimant did have access to legal advice if she wanted to take it. And she did have a further six months in the army before her notice to terminate expired when she could have reconsidered the Blandford offer if she had wished to.
69. For these reasons we find the Claimant’s decision not to accept the Blandford offer to be unreasonable and in breach of the duty to mitigate her loss.”
13. We should say by way of preliminary that the Amended Notice of Appeal suggests that the case raises some important questions of principle about the approach to the issue of mitigation in cases like this, where an employer offers fresh or different employment to an employee who has been unfairly and/or discriminatorily dismissed. We do not, however, believe that there is any real doubt about the relevant principles. They were reviewed in the discrimination law context in the decision of the Court of Appeal in Wilding v British Telecommunications PLC [2002] ICR 1079. The leading judgment is that of Potter LJ, with whom Brooke LJ agreed. At paragraph 37 of his judgment Potter LJ set out and endorsed the following summary of the relevant principles, which was common ground between the parties. (We note in that connection that both parties were represented by leading counsel who subsequently became Judges of this Tribunal.) Paragraph 37 reads as follows:
“As was made clear in the judgment of the EAT, (at paragraph 64) the various authorities referred to by the Tribunal (see paragraph 22 and 23 above) and Payzu v Saunders [[1919] 2 KB 581] are apt to establish the following principles which (in a form which I have somewhat recast) were accepted as common ground between the parties. (i) It was the duty of Mr Wilding to act in mitigation of his loss as a reasonable man unaffected by the hope of compensation from BT as his former employer; (ii) the onus was on BT as the wrongdoer to show that Mr Wilding had failed in his duty to mitigate his loss by unreasonably refusing the offer of re-employment; (iii) the test of unreasonableness is an objective one based on the totality of the evidence; (iv) in applying that test, the circumstances in which the offer was made and refused, the attitude of BT, the way in which Mr Wilding had been treated and all the surrounding circumstances should be taken into account; and (v) the court or tribunal deciding the issue must not be too stringent in its expectations of the injured party. I would add under (iv) that the circumstances to be taken into account included the state of mind of Mr Wilding.”
Although that summary is expressed by reference to the facts before the Court of Appeal, it is nevertheless an authoritative statement of principle as to the proper approach. Sedley LJ delivered a short judgment valuably clarifying that the essential question is not whether it was reasonable for the employer to make the offer in question but whether it was unreasonable for the employee to refuse it. At paragraph 55 (p. 1100 A-B) he said:
“This is a real distinction. It reflects the fact that if there is more than one reasonable response open to the wronged party, the wrongdoer has no right to determine his choice; it is where and only where the wrongdoer can show affirmatively that the other party has acted unreasonably in relation to his duty to mitigate that the defence will succeed.”
That point, though, as we say, important and valuable, is not in any way inconsistent with the overall summary given by Potter LJ.
14. Ground 1 in the Amended Notice of Appeal begins as follows:
“The Tribunal failed to identify the correct legal test and/or apply it to the material facts and/or consider or give sufficient weight to the relevant factor that where the offer of alternative employment comes from the wrongdoing employer itself, a court is likely to take a relatively relaxed view in favour of the employee as to what reasonableness requires […].”
It then goes on to refer to two well‑known authorities on mitigation, Shindler v Northern Raincoat Co Ltd [1960] 1 WLR 1038 and Fyfe v Scientific Furnishings Ltd [1989] ICR 648.
19. Ground 4 refers to the decision of this Tribunal in Cambridge and District Co‑Operative Society Ltd v Ruse [1993] IRLR 156, in which it was held that it was possible for an offer of alternative employment, made for the purpose of the redundancy payment provisions, that was objectively “suitable” nevertheless to be reasonably refused on the grounds of the employee’s perception of the status of the new job. We cannot see how that decision undermines any aspects of the Tribunal’s reasoning.
20. Ground 5 reads as follows:
“The Tribunal erred in law and/or perversely concluded at Reasons [63] that it was a mistake for the Claimant not to test whether or not she would in fact be deployed by accepting the Blandford offer and ‘then see what happened’ where the Tribunal had already found that ‘She was aware that there was no guarantee that she would not be deployed before 2012’ [emphasis added by Mr Sethi] albeit from the terms of the letter a reasonable person in her position would have realised that it was very unlikely.”
We can only say that we see no perversity in the Tribunal’s conclusion.
22. Ground 7 reads as follows:
“The Tribunal erred in law and/or perversely did not take any or any sufficient account of the fact found at Reasons [34] that at the time of deciding to refuse the Blandford offer the Claimant was engaged in pending litigation against the Respondent (Shindler above).”
Shindler lays down no general rule. In fact, in Wilding itself a finding of failure to mitigate was upheld by the Court of Appeal, notwithstanding that the claimant remained in litigation against his employer.
23. Ground 8 was abandoned by Mr Sethi.
(B) CONGENIAL EMPLOYMENT
(C) AGGRAVATED DAMAGES
“Although the Claimant has sought aggravated damages there is nothing in this case which would lead us to make an additional award of that type.”
29. At ground 12 of the Amended Notice of Appeal it is submitted that the Tribunal’s conclusion in this regard was an error of law, in that its own findings about the way in which she was treated, set out in the earlier sections of the Reasons, necessarily involved a finding that she had been treated, in the usual formulation, in a “high‑handed, malicious or oppressive manner” such that an award of aggravated damages ought to be made. There may be room for argument about whether and in what sense “aggravated damages” are indeed a separate head from “injury to feelings”, requiring always to be dealt with by way of a distinct award; but we need not go into that question here. Even if aggravated damages are in principle separate or separable from an award for “ordinary” injury to feelings, the decision of where the latter stops and aggravated damages start is a matter of judgment and evaluation: there can be no bright line. There will be cases where a tribunal takes into account in its award for injury to feelings elements that another tribunal might have compensated separately by way of an award of aggravated damages. That does not matter as long as the elements in question are properly taken into account under one head or the other. It seems to us that all the factors on which Mr Sethi sought to rely – which, as we have already said, derived from the Tribunal’s own express findings – were taken into account in its award of £15,000. Even if some of them could have been considered separately by way of an award of aggravated damages, none of them, it seems to us, had to be; nor, which is what really matters, does an award of £15,000 seem to us to be outside the bracket of possible awards for the suffering that the Appellant unquestionably underwent. Mr Sethi sought to rely on the decision of the Court of Appeal in Scott v Commissioners of Inland Revenue [2004] ICR 1410; but that case was concerned only with the specific question of whether the guidelines given in the very well‑known decision of Vento v Chief Constable of West Yorkshire Police (no. 2) [2003] ICR 318 did or did not cover cases where it was appropriate to make an award of aggravated damages. That does not appear to us to have any bearing on the criticism made by the Appellant in the present case. We repeat that none of the Tribunal’s findings seem to us to have been such as necessarily to compel the making of an award under the separate heading of aggravated damages or in any event a larger award than was in fact made.
CONCLUSION