At the Tribunal | |
Before
THE HONOURABLE MR JUSTICE SINGH
MS P TATLOW
MR M WORTHINGTON
APPELLANT | |
(2) NSL LTD |
RESPONDENT |
Transcript of Proceedings
JUDGMENT
For the Appellant | MR JOHN CAVANAGH (One of Her Majesty's Counsel) Instructed by: Legal Services to Barnet & Harrow Council P O Box 2 Civic Centre Station Road Harrow HA1 2UH |
For the First Respondent For the Second Respondent |
MR OLIVER SEGAL (One of Her Majesty's Counsel) Instructed by: UNISON Legal Services UNISON Centre 130 Euston Road London NW1 2AY Written Submissions |
SUMMARY
REDUNDANCY – Collective consultation and information
The Appellant is a local authority which was contemplating redundancies of staff and also transfers of some employees to third parties. The Employment Tribunal found that it had breached the consultation and information requirements in section 188 of the Trade Union and Labour Relations (Consolidation) Act 1992 and regulation 13 of the Transfer of Undertakings (Protection of Employment) Regulations 2006 (SI 2006 No. 246). It went on to make a protective award under the 1992 Act and an award of compensation under the 2006 Regulations. In calculating the periods for which those awards should be made it took as a starting point the maximum that is available in law and worked down from that.
Held (1) The Tribunal had misdirected itself in law because the starting point of the maximum was, in accordance with Court of Appeal and EAT authority, only to be used where the employer had not engaged in any consultation at all. Those were not the circumstances of the present case. The case would therefore be remitted to the same Tribunal, which was familiar with the evidence, having conducted a two day hearing, to reconsider its decision in accordance with the judgment of the Appeal Tribunal. (2) The Tribunal had also erred in law in failing to make a declaration that the Second Respondent (the transferee in one case) was jointly and severally liable for breach of the 2006 Regulations under regulation 15(9). A declaration to that effect would therefore be made by the Appeal Tribunal. (3) The Second Respondent's cross-appeal would be dismissed, as any question of apportionment as between that Respondent and the Appellant was a matter for the ordinary courts and not for the Employment Tribunal.
THE HONOURABLE MR JUSTICE SINGH
Introduction
Factual background
Material legislation
"The transferee shall be jointly and severally liable with the transferor in respect of compensation payable under sub-paragraph 8(a) or paragraph 11."
Principal authorities
"I suggest that Employment Tribunals in deciding in the exercise of their discretion whether to make a protective award and for what period should have the following matters in mind:
(i) The purpose of the award is to be provide a sanction for breach by the employer of the obligations in section 188; it is not to compensate the employees for loss which they have suffered in consequence of the breach.
(ii) The Tribunal have a wide discretion to do what is just equitable in all the circumstances. But the focus should on the seriousness of the employer's default.
(iii) The default may vary in seriousness from the technical to a complete failure to provide any of the required information and to consult.
(iv) The deliberateness of the failure may be relevant as may be the availability to the employer of legal advice as to his obligations under section 188.
(v) How the Tribunal assess the length of the protective period is a matter for the Tribunal but a proper approach in a case where there has been no consultation is to start with the maximum period and reduce it only if there were mitigating circumstances justifying a reduction to an extent which the Tribunal consider appropriate."
"29 Mr McDowall reminded us of Peter Gibson LJ's point 6 in Susie Radin where reference is made to taking the maximum award as the starting point and discounting if appropriate the mitigation circumstances and as we understand it he made the same submission to the Tribunal, but that guidance was directed at the case where the employer has done nothing at all and it should not applied mechanically in a case where there has been some information given and/or some consultation but without using the statutory procedure."
The Judgment of the Employment Tribunal
"Mr Segal [Counsel for Unison before the Employment Tribunal and before us] asked us to start with the maximum when considering the period for the protective award whereas Ms Cohen [who appeared for Barnet below but not in this Appeal Tribunal] states that we only do that if there is no consultation." (the emphasised word is in the original text of the Judgment)
"Whether we start with the maximum protective period and work backwards and the description of employees."
"For these purposes we consider together all matters raised (the redundancies and the two transfers) before deciding what it is appropriate to award. In general terms we accept that we have to consider what is just and equitable. The guidance contained within Susie Radin is quite clear and we must consider the seriousness of the breach. We also accept that Susie Radin indicates that we start with a maximum only where there is no consultation and that cannot be said to be the position in this case [we interpose only to say that Mr Cavanagh QC, who has appeared for the Appellant in this appeal hearing, accepted that if the Employment Tribunal had stopped there he would have had no arguable basis for saying that they had fallen into error as a matter of law]. Having said that we are not quite sure where we should start if we do not start with the maximum and work down. It was not put to us by either of the Respondents' representatives that there was a better place to start and given that in our view this is a relatively serious failure we do indeed start with the maximum."
Ground 1 in the appeal
Ground 2 in the appeal
Conclusion