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United Kingdom Employment Appeal Tribunal |
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You are here: BAILII >> Databases >> United Kingdom Employment Appeal Tribunal >> Constantine v. McGregor Cory Ltd [2000] EAT 236_99_0302 (3 February 2000) URL: http://www.bailii.org/uk/cases/UKEAT/2000/236_99_0302.html Cite as: [2000] EAT 236_99_0302, [2000] EAT 236_99_302 |
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At the Tribunal | |
On 1 February 2000 | |
Before
THE HONOURABLE MR JUSTICE LINDSAY (PRESIDENT)
MR D J HODGKINS CB
MR S M SPRINGER MBE
APPELLANT | |
RESPONDENT |
Transcript of Proceedings
JUDGMENT
Revised
For the Appellant | MR S GORTON (of Counsel) Messrs D P Hardy & Co Solicitors 3rd Floor 81 Dale Street Liverpool L2 2HT |
For the Respondents | MR T RESTRICK (of Counsel) Messrs Dibb Lupton Alsop Solicitors India Buildings Water Street Liverpool L2 0NH |
MR JUSTICE LINDSAY (PRESIDENT): We have before us by way of a full hearing the appeal of Mr C Constantine in the matter Constantine v McGregor Cory Ltd. After a two day hearing in September 1998 the Employment Tribunal at Liverpool under the chairmanship of Mr N E Coles sent its extended reasons to the parties on 17th December 1998. The unanimous decision was:
"(i) the applicant was unfairly dismissed
(ii) the respondents are ordered to pay to the applicant compensation in the sum of £350."
On 26th January 1999 Mr Constantine lodged a Notice of Appeal. It came before the Employment Appeal Tribunal for a preliminary hearing on 25th May 1999. Mr Gorton then appeared for Mr Constantine and it was his amended Notice of Appeal that was permitted to come forward this full hearing. Mr Gorton also appears for Mr Constantine today and Mr Restrick appears for the respondent employer.
"2. The applicant's complaint to the Tribunal was that he was unfairly dismissed by the respondents by reason of the fact that he was dismissed by reason of redundancy on 20 March 1998, that the procedure adopted by the respondents in relation to such dismissal was unfair and that he was unfairly selected for such redundancy."
"6. The Tribunal is satisfied, and the applicant's representative did not dispute this, that by the end of 1997 a redundancy situation existed by reason of the fact that the respondents major customer, Makro, had decided to withdraw its business from them. Although the respondents had been successful in partially replacing that lost business with a new contract with Kellogg's, the nature of the work involved in that new contract would be different from that which had previously operated with Makro."
"7. The applicant described himself in his Originating Application to the Tribunal as a forklift truck driver. As such he was also a warehouse operative but other warehouse operatives had traditionally been involved in and become experienced in "picking" and "loading". The Tribunal is satisfied that the applicant was more keen on forklift truck driving than picking and loading and had been reluctant to engage in such when asked to do so. He was a good forklift truck driver and regarded such activity as his principal responsibility."
"8. The redundancy situation having come about, the respondents decided on criteria for selection for redundancy which was on a points basis. Contrary to their own procedure, the respondents failed to consult with the recognised trade union, USDAW, before choosing that particular selection criteria. The union was, however, told about the proposed selection criteria and, it is accepted by the applicant's representative, did not object to it. The Union was in a difficult position since any criteria adopted by the respondents could potentially be prejudicial to some of its members. Nevertheless, the Tribunal is satisfied on the balance of probabilities that the respondents acted unfairly in failing to consult with the union before deciding upon the selection criteria."
"9. The Tribunal was also concerned about the fact that the respondents own written guidelines for selection criteria in redundancy situations were not followed. It was also concerned about the fact that the points system used by the respondents referred to "attitude" and "flexibility" for which the applicant received such low points as to justify the respondents in dismissing him. Those criteria were unclear and misleading and, in the Tribunal's view, contributed to its conclusion that the dismissal was unfair for procedural reasons."
"11. Mr Heaton dismissed the applicant on the recommendation of Mr Austin and there was no consultation with the applicant before that decision was made. This, in the Tribunal's view, also rendered the decision unfair from a procedural point of view."
"13. For the reasons stated above, and having regard to the provisions of Section 98(4) of the Employment Rights Act 1996, the Tribunal concluded that the dismissal of the applicant was unfair. However, the Tribunal went on to consider whether, if a correct procedure had been gone through, the decision to dismiss the applicant would have been different, on the assumption that the respondents would have acted fairly."
"10. … the applicant was given the opportunity to relocate to the Huyton site which may have given him the opportunity to return to the Knowsley site should business improve. The applicant was not prepared to do this, principally by reason of distance from his home, but the Tribunal did not feel that the applicant gave adequate consideration to such option."
"14. The Tribunal is satisfied that the applicant was essentially a forklift truck driver and did not possess the wider skills and experience which other warehouse operatives who were retained possessed. The Tribunal is therefore satisfied, on the balance of probabilities, that even if the applicant had been more properly consulted before the decision to dismiss was made, and even if a different format of selection criteria had been adopted, it would nevertheless have been reasonable for the respondents to select the applicant for redundancy by reason of his restricted work experience."
"15. It was for that reason that the Tribunal concluded that the only financial loss sustained by the applicant as a result of his unfair dismissal was his net loss of earnings during a proper period of consultation. That was assessed by the Tribunal at 2 weeks net wages amounting to £350. The applicant had received a redundancy payment which was in excess of the basic award for unfair dismissal."
"The Employment Tribunal in any event failed to consider:
(1) The Appellant's claim for reinstatement/reengagement …"
"(1) This section applies where, on a complaint under section 111, and employment tribunal finds that the grounds of the complaint are well-founded.
(2) The tribunal shall-
(a) explain to the complainant what orders may be made under section 113 and in what circumstances they may be made, and
(b) ask him whether he wishes the tribunal to make such an order.
(3) If the complainant expresses such a wish, the tribunal may make an order under section 113."
Section 113 provides:
"An order under this section may be-
(a) an order for reinstatement (in accordance with section 114), or
(b) an order for re-engagement (in accordance with section 115),
as the tribunal may decide."
"… It is noteworthy that an industrial tribunal may, if it thinks fit, make an order for re-engagement under that section and in so doing exercise a very wide discretion as to the terms of the order. In a case where an industrial tribunal held that dismissal on the ground of redundancy would have been inevitable at the time when took place even if the appropriate procedural steps had been taken, I do not, as at present advised, think this would necessarily preclude a discretionary order for re-engagement on suitable terms, if the altered circumstances considered by the tribunal at the date of the hearing were thought to justify it."
"… The question for the court is therefore whether we should overturn the decision of the industrial tribunal, which was upheld by the Employment Appeal Tribunal, that the employers' motion for leave to lead additional evidence should be refused."
"… The industrial tribunal had concluded that the employers had failed to show that their method of selection was fair or applied reasonably. There were two reasons for this conclusion. One was lack of proper consultation. The other was that the industrial tribunal found it impossible to decide whether the selection criteria had been fairly applied in the absence of evidence from those who had made the relevant markings when assessing employees for redundancy. The court found it unnecessary to determine whether the industrial tribunal were well-founded upon this second matter. …"
"… Because of the absence of evidence from those primarily responsible for the selection these are not cases in which we feel able to assess the applicant's chances of escaping selection for redundancy had been there been adequate consultation."
"Before turning to consider the parties' submissions in more detail, it is appropriate to identify more precisely what evidence it was that the employers sought to lead, but were refused leave to lead. In giving their reasons for the refusal, the tribunal say that counsel sought leave lead evidence 'from witnesses who … would say that if there had been consultation, and if the applicants had had at that point the opportunity to say to the employers what they had said to us about the marking in the individual assessments, the applicants would still have been dismissed.' …Put shortly, it appears that the hypothetical consultation which would have been covered in the proposed evidence would have related specifically to these individual assessments, within and according to the adopted method and criteria, and would not have been a broader consultation as to the appropriateness of that adopted method or those criteria. In considering whether it was right to refuse leave to lead the evidence, it is of some importance to bear in mind what the proposed evidence was – and was not."
"… In broad terms, it appears to us that there will be situations where one can say that what went wrong was 'merely' procedural. Equally, in broad terms, we think there will be situations where one can say that an employee has been deprived of 'something of substantive importance', to use a phrase of Lord Coulsfield's. We see no need to discard entirely terminology of this kind; and while in many cases it may inappropriate to allocate the particular facts of either category, or to do without enquiry, it seems to us that a distinction between the 'merely' procedural, and the more genuinely 'substantive' will often be of some practical use, in considering whether it is realistic, or practicable, or indeed 'just and equitable' to embark upon an attempt ton construct a hypothesis, enabling one to assess what would have happened, if only it had. If there has been a 'merely' procedural lapse or omission, it may be relatively straightforward to envisage what the course of events would have been if procedures had stayed on track, rather than briefly leaving the track in this way. If, on the other hand, what went wrong was more fundamental, or 'substantive', and seems to have gone 'to the heart of the matter', it may well be difficult to envisage what track one would be one, in the hypothetical situation of the unfairness not having occurred. It seems to us that the matter will be one of impression and judgment, so that a tribunal will have to decide whether the unfair departure from what should have happened was of a kind which makes it possible to say, with more or less confidence, that the failure made no difference, or whether the failure was such that one simply cannot sensibly reconstruct the world as it might have been. It does not seem to us that there is anything very wrong in using the word 'substantive' in connection with this latter situation."
"So far as Lord Bridge's observations in Polkey are concerned, it is no doubt correct to say that he is not drawing a categorical distinction between 'procedural' cases and 'substantive' case, or excluding the latter as a category from the possibility of what has become known as a Polkey reduction. … we cannot read him as trying to lay down a general proposition, to the effect that an employer will always be entitled, however fundamental his unfair course of action may have been, and however speculative the question of what would have happened but for these acts and omissions, to insist upon a tribunal hearing a tract of evidence, designed to reconstruct the world that never was, and ask for a finding as to the likelihood of the employee having been dismissed in that speculative world."
"On the whole matter, we are satisfied that the proposed evidence should not be allowed, and we will refuse the appeal."
"… The Tribunal is therefore satisfied, on the balance of probabilities, that even if the applicant had been more properly consulted before the decision to dismiss was made, and even if a different format of selection criteria had been adopted, it would nevertheless have been reasonable for the respondents to select the applicant for redundancy by reason of his restricted work experience."
"There is no need for an 'all of nothing' decision. If the industrial tribunal thinks there is a doubt whether or not the employee would have been dismissed, this element can be reflected by reducing the normal amount of compensation by a percentage representing the chance that the employee would still have lost his employment."
"… First, as was pointed out by Browne-Wilkinson J in Sillifant's case, if the industrial tribunal, in considering whether the employer who has omitted to take the appropriate procedural steps acted reasonably or unreasonably in treating his reason as a sufficient reason for dismissal, poses for itself the hypothetical question whether the result would have been any different if the appropriate procedural steps had been taken, it can only answer that question on the balance of probabilities. …"
"… But if the likely effect of taking the appropriate procedural steps is only considered, as it should be, at the stage of assessing of compensation, the position is quite different. …"