Fetter Lane, London, EC4A 1NL |
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B e f o r e :
MR NICK AZIZ
MR STEVEN TORRANCE
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MS M GLOVER |
Appellant |
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(1) LACOSTE UK LTD (2) MR R HARMON |
Respondents |
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NATHAN ROBERTS (instructed by Stephenson Harwood LLP) for the Respondents
Hearing date: 20 December 2022
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Crown Copyright ©
SUMMARY
SEX DISCRIMINATION
The employment tribunal erred in law in holding that the determination at an appeal hearing that the claimant must work a fully flexible part-time work pattern did not involve the application of a PCP because the decision was revoked after the claimant's solicitors had sent a letter before action. The only possible determination was that the PCP was applied. The matter was remitted to a newly constituted employment tribunal to determine the remaining live issues.
HIS HONOUR JUDGE JAMES TAYLER
Introduction
The claim
The decision of the employment tribunal
61. Section 19(1)(c) is whether the arrangement puts or would put the employee at the disadvantage. The principal dispute in this case is whether the respondent applied a provision criterion or practice to the claimant at all. The respondent submits not only that the claimant was never required to work full-time, as that requirement was abandoned at the appeal stage, but also that the claimant was never, in the event, required to work flexibly. She was put on furlough on 21 March when her maternity leave and annual leave ended, as the store was still closed, and was still on furlough when on 23 April they conceded her original request. The claimant, by contrast, argues that she was subject to detriment by reason of the original decision on 8 March, and still subject to detriment at the date of the appeal decision on 7 April, because she had been told, and believed, she had to return to work fully flexibly, on four days a week.
62. The respondent relies on Little, to the effect that while the process was ongoing, the provision never applied. The appeal tribunal in that case assumed in favour of the claimant that "the statutory tort was prima facie completed" when her initial application for flexible working was refused, but that reversing the decision on appeal meant that it was never applied. The claimant argues that Little was wrongly decided and that in the light of Buckland a repudiatory breach could not be cured by subsequently reversing the decision, an act of discrimination being arguably a breach of contract. This tribunal is, however bound by the decision of the Employment Appeal Tribunal, which in Little had already discussed both Buckland and Cast.
63. The claimant further relies on Keohane, to the effect that where there was a real risk of an adverse outcome, that was a detriment, even if it was later reversed (in that case the dog was eventually returned, some months after her maternity leave had ended and she had returned to work). She had suffered in anticipating that she would have to work flexibly.
64. The tribunal prefers the argument of the respondent. This case differs from a little on the facts in Little, in that the statutory process was completed against the claimant, but it was then reversed before she was ever required to start work on the flexible terms. It was distressing for the claimant to anticipate that she would have to resign because she could not find or afford flexible childcare, but she was never in practice required to do it. It might be different if she had resigned, like Ms Little, but (unlike Ms Little), she had postponed a resignation until after the appeal outcome, nor did she resign. Instead she tried again, though making it clear that she might well resign if there was no change, and fortunately this time she succeeded. Taken overall, whether the decision was taken within or without the statutory process, she was never in fact required to work flexibly. We could not see that it made a difference for the purpose of section 19 that the decision was altered after the internal appeal was decided, when she had not yet had to work on the employer's proposed flexible four-day week. It had not been applied to her. At most, it was proposed that it would apply to her.
65. These facts also differ from Cast, where the claimant had returned to work on the terms she did not want, managing it by using up leave, while continuing to seek reconsideration, because in that case the requirement to work on her old terms was applied to her on her return to work.
66. If we consider the facts in Keohane, the dog had already been removed; of itself that was not considered a detriment; the appeal had proceeded on the basis of an implicit understanding that there was detriment, given police policy to remove dogs and not return them, in that the claimant would have no dog on return from leave, and that this was an inherent part of the employer's decision. The appeal tribunal had accepted that "with reservations". The set of events that implied "real risk" of loss of earnings and career loss without a dog had already started. Here, nothing had yet happened after the flexible working request appeal, and before the claimant had to return to work the decision had been reversed. We concluded that her apprehension of detriment was not enough. It was not a "real risk" as in Keohane, where removal of the dog meant the process of implementing the policy that would lead to reduced earnings and career loss had already started The policy had not yet been applied to her, she had asked for reconsideration at a point when she was still not required to work, and the policy was in the event not applied to her.
67. The statutory wording is "applies or would apply" the PCP to persons not sharing the claimant's protected characteristic; the reference to "would apply" is intended to cover situations where, as it happens, there is no one without the protected characteristic, but there might be – like the hypothetical comparator in direct discrimination. Where subsections (b) and (c) speak of "would put", we understand that to mean the same set of facts, namely, that the PCP affects everyone, regardless of the protected characteristic, but as it happens there is no one without the protected characteristic. It is not understood to mean that if carried out it would put the claimant at disadvantage.
68. In our finding, the claimant has not passed the hurdle of section 19 (1)(c) [sic], so we need not go on to consider justification, but in case we are wrong, we went on to consider this.
59. However, we did consider there was particular disadvantage in the requirement to work flexibly, namely any five days in seven, or (as offered on appeal) any four days in seven, subject to four weeks' notice. With respect to care by family members, a child's partner may be working, and so do many grandparents. It will be unusual for other employers to be so flexible as to accommodate changes in work pattern, even at four weeks notice. As for nurseries, a large proportion of their running costs are related to staff wages, and they are required by statute to maintain a particular staff-child ratio. Unless they had a large bank of nursery nurses they would be unlikely to be able to lay on or lay off care on particular days of the week for individual children, and even with bank nurses, they would be unlikely to cover the cost of an additional nurse without other children requiring care on that particular day. We have no evidence of affordable nurseries able to provide this drop-in drop-out care, and all the nurseries we have heard of require commitment to particular patterns of use. There often waiting lists for particular days of the week. A working arrangement at the level of flexibility required by the respondent initially, or as envisaged by Scott Collingham in his June 2021 email about changing the claimant's days when the sale footfall was low, would be very difficult without a family member able to provide backup at short notice.
60. Even a fully flexible working arrangement at four weeks notice would be difficult. It would depend on finding a nursery or childminder for those particular days at four weeks notice. The claimant did not discuss what notice of changes in nursery would require, or whether there were restrictions on particular days of the week. However, the real difficulty in what the respondent proposed for people with childcare responsibility was the requirement to fully flexible at weekends. Few nurseries open over the weekend. The claimant's evidence was that a limited number of childminders were available, but they were fully booked. We understood from evidence that the child's grandmothers both had to work at weekends, and her partner's availability on Saturdays was subject to his own employers' needs. Her partner was paid triple time for Sunday working, so we understand how the couple would be reluctant to give that up. We considered that particular disadvantage was shown in respect of the requirement to work flexibly, even with four weeks' notice, when it included weekend working. It is not always easy to find childcare at the weekend; having to do so flexibly made it very difficult indeed.
The appeal and response
The law
(2) An employer (A) must not discriminate against an employee of A's (B)—
(a) as to B's terms of employment;
(b) in the way A affords B access, or by not affording B access, to opportunities for promotion, transfer or training or for receiving any other benefit, facility or service;
(c) by dismissing B;
(d) by subjecting B to any other detriment.
19 Indirect discrimination
(1) A person (A) discriminates against another (B) if A applies to B a provision, criterion or practice which is discriminatory in relation to a relevant protected characteristic of B's.
(2) For the purposes of subsection (1), a provision, criterion or practice is discriminatory in relation to a relevant protected characteristic of B's if—
(a) A applies, or would apply, it to persons with whom B does not share the characteristic,
(b) it puts, or would put, persons with whom B shares the characteristic at a particular disadvantage when compared with persons with whom B does not share it,
(c) it puts, or would put, B at that disadvantage, and
(d) A cannot show it to be a proportionate means of achieving a legitimate aim.
20.1. general application of a PCP – ss 19(1) and 19(2)(a)
20.2. particular disadvantage to the group that shares the claimant's protected characteristic – s 19(2)(b)
20.3. disadvantage to the claimant – s 19(2)(c)
20.4. detriment to the claimant – s 39(2)(d)
In my judgment, this ground of appeal is subject to the same objection as the last. It starts by reference to the application to the applicant of a requirement, at the latest on 10 May 1993, a date at which, according to her complaint, she knew she could not comply with it. However, it denies it the quality of an act of discrimination of which she complained until she suffered its consequence on leaving her employment on 6 July 1993. It is not the suffering of such a consequence which amounts to an act of indirect discrimination against a woman; it is the application to her of a requirement, whether or not yet invoked or enforced, which is to her detriment because she cannot comply with it.
In reaching this conclusion I reject the employers' submission that a contractual term is not "applied" to a party to the contract until it is invoked against her. In my view the inclusion of a contractual term which imposes an obligation on a party to the contract amounts to an application of a requirement or condition against that party. Counsel for the employers effectively concedes as much by accepting that, had Mrs. Meade-Hill been compelled to refuse the offer of promotion because of the mobility clause, she might have complained to an industrial tribunal of indirect discrimination contrary to section 6 of the Act of 1975. But section 6 has no application in the absence of discrimination, and where indirect discrimination is alleged that brings in section 1(1). That in turn involves giving to the word "applies" the meaning which I have indicated. …
In my view there is no escape from the dilemma; either the inclusion of the mobility clause amounts to an application of a requirement against Mrs. Meade-Hill (in which case the requirement must be that which I have stated); or it is not, in which case an applicant for a job who is deterred from accepting an offer of employment by the presence of a mobility clause of the present kind has no redress. I would not accept the latter interpretation unless compelled to do so.
48. Detriment is not defined in the Act (although section 212(1) excludes it from claims which might otherwise be characterised as harassment, a refinement which has no relevance to the facts of the present appeal). However, there was agreement before me that the applicable law is in Shamoon v Chief Constable of the Royal Ulster Constabulary [2003] ICR 337, and particularly in the opinion of Lord Hope of Craighead at paras 33–35.
49. Detriment is a word to be interpreted "widely" in this context: Chief Constable of the West Yorkshire Police v Khan [2001] ICR 1065 , per Lord Mackay of Clashfern at para 37 (cited in Shamoon at para 33).
50. The key test for present purposes is for the employment tribunal to ask itself: "Is the treatment of such a kind that a reasonable worker would or might take the view that in all the circumstances it was to his detriment?" It is not necessary to establish any physical or economic consequence for this question to be answered in the affirmative. The requirement that this hypothetical worker is a reasonable person means, of course, that an unjustified sense of grievance would not pass this test. All of this is established by the opinion of Lord Hope (and other cases which he cites) in Shamoon at para 35.
51. Although the test is framed by reference to "a reasonable worker", it is not a wholly objective test. It is enough that such a worker would or might take such a view. This is an important distinction because it means that the answer to the question cannot be found only in the view taken by the employment tribunal itself. The tribunal might be of one view, and be perfectly reasonable in that view, but if a reasonable worker (although not all reasonable workers) might take the view that, in all the circumstances, it was to his detriment, the test is satisfied. It should not, therefore, be particularly difficult to establish a detriment for these purposes.
4. The claimant joined the employer on 8 March 2006 as an evening receptionist. In January 2009 she was promoted to sales executive working full-time. On 14 September 2009 she went on maternity leave prior to the birth of her second child.
5. Between January and May 2010 she applied to the employer for a flexible working arrangement on her return to work following maternity leave in August 2010. The original application was amended and finally, on 12 April, she proposed working Monday to Wednesday, 9 am to 3 pm in the office, adding that she would like remote e-mail access in order to permit her to contact clients or colleagues on Thursdays and Fridays.
6. On 17 June 2010 Ms Gowling, the claimant's line manager, rejected the claimant's application on the basis that it was not feasible for a sales executive to operate on a part-time basis.
7. On 9 July 2010 the claimant appealed against that refusal by letter and e-mail. The employment tribunal found that no e-mail was received by the employer and the letter was received on 14 July. Before an appeal hearing could be arranged the claimant resigned on 19 July. That same day she was asked by the employer to reconsider until an appeal hearing took place. On 22 July an appeal hearing took place before Mr Berelowitz, the operations director. The claimant attended that hearing. Her appeal was upheld to the extent that he offered a three-month trial on the terms she had suggested following her return from maternity leave in August. The claimant did not take up that offer but instead on 26 July she confirmed that her resignation of 19 July stood.
We repeat, this case is particularly fact and claim sensitive.
29. Before the Martin tribunal the issues had been expanded, as appears from para 3 of that tribunal's reasons. Critically, it seems to us, the tribunal was asked, at para 3.5, to determine whether the particular disadvantage relied on by the claimant as framed at para 3.3.2 applied to her as a result of the application of the PCP alleged, that is that all sales executives work full time.
30. In answering that question the Martin tribunal concluded (para 33) that the claimant had not made out personal disadvantage on the facts because Mr Berelowitz agreed (on appeal) that the claimant could work part-time on a trial basis as she had requested. The claimant accepted that in hindsight she could have taken up the offer of the trial period and proved the employer wrong in having doubts about the efficacy of part-time working in the sales executive role. The employment tribunal further found that part-time working on a trial basis did not constitute a detriment to the claimant.
31. Thus, the question arises: was that a permissible approach by the employment tribunal? We have concluded that it was.
34. Secondly, consistent with the approach of the House of Lords in West Midlands Co-operative Society Ltd v Tipton [1986] ICR 192 and the Court of Appeal in Taylor v OCS Group Ltd [2006] ICR 1602 , it is the experience of the industrial members sitting on this appeal that an internal appeal process, consensually pursued, forms part and parcel of the employer's decision-making process. Thus, on the facts of this case, Ms Gowling's decision to reject the claimant's request for part-time working on her return in the future was expressed to be subject to the claimant's right of appeal. To that extent her decision was conditional. She exercised that right and succeeded on appeal (cf Cast v Croydon College [1998] ICR 500 ). The PCP, full-time working, was not to be applied to her when she completed her maternity leave. She did not suffer personal disadvantage under section 1(2)(b)(ii) nor, we would add, any detriment short of dismissal under section 6(2)(b) of the Sex Discrimination Act 1975. Dismissal was not relied on in this indirect discrimination claim.
35. On this analysis we are satisfied that the employment tribunal's approach was not flawed in law. We are not persuaded that the strict contractual approach to curing a repudiatory breach adopted by the Court of Appeal in Bournemouth University Higher Education Corpn v Buckland [2010] ICR 908 causes us to take a different view in the context of an indirect discrimination claim. Accordingly, the claimant's challenge to the employment tribunal's finding of no personal disadvantage fails and is rejected.
That, however, was to view what had happened through the prism of the case law on "dismissal"; to focus on the reinstatement of the Claimant and what that meant for the continuity of his employment rather than on the actual act of which he was complaining, which was the initial dismissal itself. More specifically, the Claimant did not need to demonstrate that this remained a dismissal; he was entitled to complain of this - the failure to offer to retract the notice - as an act of detriment.