it’s not apportionment – but it certainly looks like it

Hackney_town_hall

If anyone wonders just how expensive and protracted an employment dispute can be the Court of Appeal decision in London Borough of Hackney v Sivanandan is well worth reading. Lord Justice Mummery introduces his judgment as follows:

"It is 12 years since this discrimination dispute began. It arose out of two unsuccessful job applications at the end of the 20th century. The case is now a 21st century version of a 19th century Chancery saga. And it is not over yet.

"The reader of this judgment will be spared what Underhill J (the President) described in the Employment Appeal Tribunal (EAT) as the “complex and extraordinarily long history”. It is a Dickensian narrative of allegations and counter-allegations, applications and cross-applications, misunderstandings, objections, complaints, hearings, adjournments, reviews, appeals and cross-appeals and repeated wrangling about procedure, case management matters, schedules, and even about the bundling and delivery of documents."

However, it is not the extraordinary length and complexity of the proceedings which justifies this item. Rather, the Court addressed the question of whether a tribunal is entitled, where there is more than one discriminator, to apportion liability between respondents.

Ms Natasha Sivanadan failed to get a post as a Training and Development Co-ordinator for Hackney Action for Racial Equality (“HARE”). Subsequently she brought discrimination proceedings against Ms White, an employee of Hackney Council (“Hackney”) who was on the interview panel for the job, a number of others involved in the recruitment process, and Hackney itself, on the basis that Hackney was vicariously liable for its employees’ actions. At two separate hearings, an Employment Tribunal awarded compensation of £1,905.41 against Ms White, and £421,415 against Hackney, the latter including aggravated damages of £25,000.

Hackney appealed two aspects of the award of compensation. First it challenged the element of aggravated damages (but not the calculation of the rest of the compensation) and, second, it argued that the Tribunal could not award any more compensation against it than the £1,905.41 it had awarded against Ms White. Continue reading

new compensation limits but will they last?

money

As is usual at this time of year the Government has published a statutory instrument which upgrades some of the maximum awards which may be made by a tribunal.

  • The compensatory award increases from £72.300 to £74,200.
  • A “week’s pay” increases from £430 to £450.
  • The minimum basic award in applicable cases increases from £5,300 to £5,500

As I’ve mentioned before it is unusual for compensatory awards for unfair dismissal to reach the maximum. According to the latest report from the Ministry of Justice the median award for unfair dismissal was £4,560 and the average award £9,133, with just 49 claims resulting in awards of over £50,000.

However, this should not be seen as a cue for complacency on the part of employers. The highest award for race discrimination was £4,445,023 (average £102,259), with sex discrimination claims averaging £9,940, disability discrimination £22,183 and age discrimination £19,327. It is also worth bearing in mind that these figures do not include claims settled without a hearing.

There has also been a trend towards a much higher number of discrimination claims being accepted by tribunals. Continue reading

A trivial comment or blasphemy?

Pope benedict

In Heafield v Times Newspapers Limited an Employment Tribunal was concerned with the practical application of protection from religious discrimination. Mr Heafield worked as a sub-editor, proofing and finalising articles for publication in what was undoubtedly a high pressure environment. Stories would be given abbreviated names for quick reference. On the evening in question one such story concerned an allegation of concealment by the Pope of child abuse by a priest. In the course of the evening Mr Heafield’s line manager shouted across the room “can anyone tell me what’s happening to the ****ing Pope?”.

Mr Heafield did nothing at the time but, two days later, complained that the statement was “offensive, unnecessary and blasphemous”. No specific action followed the complaint. Instead the chief night editor took no action, believing that “these things tend to sort themselves out if left alone”.

Mr Heafield’s claim failed because although there was unwanted conduct which had the effect of upsetting Mr Heafield as a Catholic, ultimately the conduct was not “related to religion” and it was not reasonable for it to have had the effect claimed by Mr Heafield. It was a trivial comment which was made neither as an insult nor on the grounds of religion. In what is clearly a carefully prepared decision the Tribunal took the view that there was unwanted conduct because Mr Heafield was genuinely upset but it could not reach a finding that the purpose of the words used was to violate Mr Heafield’s dignity.

The Tribunal took into account that it was not disputed that Mr Heafield was unhappy about coverage in The Times of allegations of child abuse by Catholic priests. He felt that this demonstrated the newspaper’s “anti Catholic sentiments”.

I believe that many might have predicted a different outcome and, yet again, this emphasises that this is a notoriously difficult area of law in which it is dangerous to make assumptions. However, what is not in doubt is that in not dealing with the matter as a formal complaint, Times Newspapers had a lucky escape.

"something more" required to establish discrimination

In the 2007 case Madarassy v Nomura International the Court of Appeal remarked that:
"The bare facts of a difference in status and a difference in treatment only indicate a possibility of discrimination. They are not, without more, sufficient material from which a tribunal ‘could conclude’ that, on the balance of probabilities, the respondent had committed an unlawful act of discrimination."

Birmingham City Council v Millwood is an illustration of one way of establishing the “something more” needed to reverse the burden of proof where a difference in treatment has been shown.

A black employee was found to have been treated less favourably than an Asian employee. They were in comparable circumstances – both were family support workers but had originally been teaching assistants. The Asian employee was given a permanent contract while the black worker was not. Various explanations were put forward. These included suggestions that there had been administration problems, that funding for the post of family support worker was limited, and that the Asian worker had asked for a permanent contract and had relevant experience. These were not untrue; but they were not enough of an explanation. This, said the Employment Appeal Tribunal was the “something more” needed to shift the burden of proof.

Mr Justice Langstaff (President of the Employment Appeal Tribunal) set out the reasoning applied as follows:

It seems to us that two issues arise for our determination. The first is whether as a matter of law Mr Beever is correct in his submission that whatever the explanations advanced for the treatment of the Claimant and however inadequate or wrong they might be, the Tribunal could not simply upon the basis of the difference in race and status coupled with the inadequacies of the excuses proffered regard the burden of proof as shifting. If he is right in that submission, then the appeal must succeed and the claim must be dismissed. If he is wrong in that submission, we have to ask whether the Tribunal by asking for "something more" identified that which Mr Swanson submits they did: that there had here been a number of rejected explanations put forward for consideration. Continue reading

Equality Act guidance

Nearly two years after most of the Equality Act 2010 came into force, the Government Equalities Office has published a series of guides (27 in total) to the changes made by the Act.

Particularly useful to employers is the “quick start” guide to the restriction on asking about health questions in recruitment (eight pages and full of examples of what you can and can’t do) and the guide for small businesses on age discrimination in the provision of services – these provisions come in to force from 1 October this year.

The guide is very brief and sets out clearly what is covered. For example, shopkeepers will be able to retain those notices which say “No more than 3/4/5 children allowed inside at any time” to restrict the number of children allowed in their shops, because children fall outside the scope of the protection. Continue reading

August employment news from abroad

Welcome to the Employment Solutions Blog from Saint Martin de Gurson (a small village between Bordeaux and Bergerac in South West France). As I hope you’ll understand this month’s report is a condensed version of the usual monthly report but I hope that you find some items of interest.

1. what happens if a claimant refuses to co-operate in obtaining medical evidence

GCHQ v Bacchus is a case in which Mr Bacchus failed to attend an appointent so that GCHQ could obtain its own psychiatric evidence in connection with his claim for disability discrimination based on anxiety. He was ordered by an employment tribunal to attend an appointment but did not do so. The tribunal nonetheless proceeded on the basis that it already had medical evidence (provided by the claimant). GCHQ appealed successfully to the Employment Appeal Tribunal. The EAT agreed with its submissions that it was unfairly disadvantaged by being unable to obtain its own medical evidence. However, the claim was not struck out. Instead, the EAT made an “unless order” requiring the claimant to attend the medical examination, failing which his claim would be struck out.

The case highlights a notable distinction between employent tribunal procedure and that which applies for personal injury claims in the county court. The standard court procedure is for the claimant to nominate proposed medical experts. If one is accepted by the defendant then a single report is prepared. However, the expert is required to make a statement acknowledging that the report is prepared for the court rather than for either party, and should therefore be impartial. On the face of it, there seems no good reason why the same procedure should not apply for tribunals. As I have commented on numerous occasions, taking into account the complexity of many tribunal claims, there is no reason why well tried court procedures should not be adopted.


2. can an employer fairly use a “pool of one” for selection for redundancy

In Wrexham Golf Co v Ingham the Employment Tribunal was asked to consider whether an employer can fairly use a “pool of one” when determining candidates (or, more accurately in this instance, a candidate) at risk of being made redundant. Those who are familiar with redundancy procedures will be aware of the need to be scrupulously fair when selecting a candidate or candidates for redundancy and the need to be able to demonstrate this if called upon to do so. It is generally an essential part of this process to identify what is commonly referred to as a pool of candidates for redundancy from which selections can be made. Often the pool will comprise employees in an under-performing department or those whose duties can be combined so as to reduce the overall number of employees performing a particular type of work. In some cases there might be only one employee performing a job which can de dispensed with.

However, the decision in Ingham emphasises that identifying the pool is but one part of the process of termination of employment which, overall, must be fair. When a tribunal considers the question of fairness a tribunal must consider whether the actions taken by the employer were within a range of reasonable responses available to a reasonable employer. In this case the tribunal had focused unduly on the question of “the pool” to the exclusion of the wider question of overall fairness in the context of the range of reasonable responses. Accordingly the finding of unfair dismissal, even though Mr Ingham was the sole bar steward at the club, was unfair, and the matter was remitted to a fresh employment tribunal for a full rehearing.


3. philosophical beliefs, the Proms and public protest

The BBC Proms 2012 are in full swing and provide those of us who enjoy them with a delightful selection of the finest classical music as particularly demonstrated by a recent concert of some of Vaughan Williams’ Symphonies which I was lucky enough to catch on BBC4 the other day. By the way, I recommend The Broadway Sound on 1 September, conducted by the remarkable John Wilson. Anyway, back to employment news! Sarah Streatfield is a violinist in the London Philharmonic Orchestra (LPO) who protested about a performance by the Israel Philharmonic Orchestra (IPO) at the 2011 Proms. Her protest took the form of a letter to the Independent protesting about the decision to invite the IPO to participate in the Proms. Three other members of the LPO and twenty other musicians were co-signatories.

She was suspended for six months on full pay for “damaging the reputation of the orchestra”. She claimed that the LPO failed to respect her “humanist beliefs” and claimed direct and indirect discrimination as well as harassment and victimisation.

An employment tribunal accepted that her humanist beliefs were capable of protection under the Equality Act 2010. However, since the LPO had no knowledge of those beliefs the discrimination claims stood no reasonable prospect of success. This resulted in the striking out of her claims for discrimination.

However, her claims for victimistation and harassment were not struck out. The tribunal provided an indication of its view of the prospects of the claims succeeding by requiring her to pay a £250 deposit as a condition of proceeding.

The significant aspects of the decision are that the claims for victimisation and harassment may proceed (subject to payment of the deposit) and, much more importantly as a general proposition, that humanism is a philosophical belief which is capable of protection under the legislation.

Many may take the view that this is a very liberal interpretation of what constitutes a philosophical belief capable of statutory protection. Although the decision is not binding on other tribunals, it might well be thought that the border between political and philosophical beliefs has been breached. An interesting philosophical question!


4. making employees on maternity leave redundant

Most employers are aware that treating employees on maternity leave unfairly is likely to result in an expensive claim for discrimination and, perhaps also, unfair dismissal. However, there are circumstances in which, entirely fairly, employees who are on maternity leave, find themselves at risk of redundancy. Since the factors which can lead to the need to redundancies can arise at any time, it is inevitable that, from time to time, those affected, may be on maternity leave. Those who are uncertain about such matters might reasonably decide to postpone redundancies or to exclude employees on maternity leave from the process.

There is an understandable and entirely approrpriate concern on the part of employers that affected employees should be treated fairly and, with this in mind, ACAS has published a guide for Managing Redundancy for Pregnant Employees or those on Maternity Leave. The guide is commendably well written and straightforward and includes really useful case studies which will undoubtedly assist those employers who face this scenario. It is highly recommended reading.


5. £157bn overtime and “nightcations”

This item comes with a source warning! According to research undertaken by Travelodge one in ten Britons are working an additional 16 hours’ unpaid work per week “in order to keep their bosses happy” and take a night off rather than a holiday in order to “recharge their batteries and boost relationships”. Apparently the value of this unpaid work is £157bn, based on an average 9.1 extra hours per week which equates to an average £5,726.18 unpaid work per working person. The report also states that 66% of adults are suffering “soaring stress levels” while 31% find it “difficult to get through the average week”. Apparently 37% of “workaholic Britons” are opting for “nightcations” instead of longer holidays.

According to Shakila Ahmed of Travelodge:

This year we have experienced a significant rise in just Saturday night bookings compared to previous years. To obtain a better understanding of the rationale behind this trend we commissioned research to investigate how the economic crisis is affecting the psychologies of British holidaymakers.

Our research findings have highlighted that Nightcation breaks are a growing trend amongst Britons as they are an easy to book, cost effective short break that help workaholic Britons recuperate and recharge for the week ahead.

Travelodge tell us that “more than a third of workers recognise that a Nightcation gives their relationship with their partner a much needed boost”.

I leave you to draw your own conclusions as I enjoy another glass of fine St Emilion while writing this newsletter in South West France!


6. finally, (for regular readers) I know that you’d be disappointed if there wasn’t a TUPE item!

In F & G Cleaners Limited v Saddington (the claimant’s name may seem appropriate in a TUPE case for regular readers) the question for the Employment Appeal Tribunal was whether employees who were offered self-employment in the event of a TUPE transfer were unfairly dismissed. The answer might seem obvious for regular readers (and TUPE aficionados) but it is surprising how often this scenario can arise, particularly in the field of contract cleaning.

Unsurprisingly the EAT took the view that there was no failure to mitigate by failing to take the offer of self-employment. However, the interesting twist is that it was also held that there could have been a failure to mitigate if the only disadvantage was the inability to claim unfair dismissal. For those who are interested in this point, I’ll leave you to click the link and read the judgment.

In this case the decision not to accept self employment was not a failure to mitigate and (important in employment law) the potential failure to mitigate did not arise when the offers were made but when the dismissals took effect. I doubt that this was a relevant consideration for the employees at the time. Who was the person who ever said that employment law is straightforward and suitable for a summary tribunal process?!

when is the reversal of burden of proof triggered?

The provision of the Equality Act 2010 reversing the burden of proof in discrimination claims (section 136) means that if a claimant can show facts which could amount to discrimination, then a tribunal must find for him or her, unless the employer can show that there was another explanation for those facts.

In Dziedziak v Future Electronics Ltd an employee selected for redundancy sought to rely on this reversal of the burden of proof, claiming, amongst other things, that the use of attendance as part of the selection criteria was indirectly discriminatory, because her attendance record as a single parent with responsibility for a sick child was poor. She failed in this part of her claim, because the tribunal found as a matter of fact that her lateness had not had an impact on her selection. Because she had not established that fact, the reversal of the burden of proof was not triggered, and her claim failed.

Although unsuccessful in this part of her claim, Ms Dziedziak did succeed in an unfair dismissal claim Continue reading

tribunals have no power to allocate liability between joint respondents

Brennan & Others v (1) Sunderland City Council (2) GMB (3) Unison is a case arising from somewhat unusual circumstances, but the decision is one of relevance in many more situations. It is part of the long running equal pay saga arising from changes in NHS terms and conditions. Briefly, the claimants are alleging that the preservation of certain bonuses for male staff in a collective agreement perpetuated unequal pay. As well as making equal pay claims against their employers, some claimants also named their trade unions as respondents to the claims, because they were parties to a discriminatory collective agreement. This decision of the Employment Appeal Tribunal deals with whether employment tribunals have jurisdiction to apportion liability between the respondents to a discrimination claim.

The answer to this question requires a little legal history. It depends on the interpretation of the Civil Liability (Contribution) Act 1978, which updated and extended the Law Reform (Married Women and Tortfeasors) Act 1935 to breach of contract cases. Continue reading

rejected applicants have no right to disclosure of the successful candidate’s details

Do rejected applicants have the right to disclosure of documents relating to the successful candidate if they consider they have suffered unlawful discrimination the the recruitment process? No, said the European Court of Justice (ECJ) in Meister v Speech Design Carrier Systems GmbH which was a claim by an applicant for a job as an experienced software developer, who made a complaint that she had been discriminated against on the ground of her sex, age, and ethnic origin when she was not short-listed for interview. The questions considered by the ECJ were:

  • 1 – does the principle of equal treatment under EU law mean that unsuccessful applicants are entitled to information about the successful applicant; and
  • 2 – does refusal of that information give rise to any presumption of discrimination?

Having answered the first question in the negative, the ECJ went on to say that the second question was one for the national courts of each country to decide.

On the face of it, this decision is a relief: the possibility of routine disclosure of details of successful candidates to unsuccessful ones doesn’t bear thinking of from all sorts of angles: preserving confidentiality; the administrative burden and the sheer nuisance value. But what approach will UK courts take to deciding whether a refusal to disclose details suggests that there may have been discrimination, given that:

it cannot be ruled out that a defendant’s refusal to grant any access to information may be one of the factors to take into account in the context of establishing facts from which it may be presumed that there has been direct or indirect discrimination

Continue reading

indirect discrimination related to retirement is unlawful age discrimination

Another important age discrimination and retirement case this month is Homer v West Yorks Police, which concerned a senior police officer who became a legal adviser at the Police National Legal Database after retiring from the police aged 51. At the time he joined, there was no requirement for advisers to have a law degree, but the PNLD later introduced a new grading structure, which required a degree for promotion to the top grade, with the intention of improving recruitment and retention. At this point, at the age of 62, Mr Homer was allocated to the second highest grade. He made a complaint of indirect discrimination because he would be unable to complete a law degree before his planned retirement age of 65, and so could not get promotion. He failed in both the Employment Appeal Tribunal and in the Court of Appeal, because it was considered that the reason for the discrimination was not his age, but his impending retirement.

The Supreme Court rejected this approach: it did not make sense to compare those approaching retirement with those leaving for other reasons, over which they had a choice, with those faced with a compulsory retirement age, nor was it realistic to treat retirement as unrelated to age. Continue reading