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United Kingdom Employment Appeal Tribunal |
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You are here: BAILII >> Databases >> United Kingdom Employment Appeal Tribunal >> Cunningham v. Quedos Ltd & Anor [2003] UKEAT 0298_03_1411 (14 November 2003) URL: http://www.bailii.org/uk/cases/UKEAT/2003/0298_03_1411.html Cite as: [2003] UKEAT 298_3_1411, [2003] UKEAT 0298_03_1411 |
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At the Tribunal | |
Before
HIS HONOUR JUDGE J MCMULLEN QC
MISS G MILLS
MR F MOTTURE
APPELLANT | |
(2) JOHN WYETH & BROTHER LTD |
RESPONDENT |
Transcript of Proceedings
JUDGMENT
Revised
For the Appellant | MS CLAIRE McCANN (of Counsel) Instructed by: Messrs Denison Till Solicitors Stamford House Piccadilly York YO1 9PP |
For the Respondent | MS HELEN GOWER (of Counsel) Instructed by: Messrs Morgan Cole Solicitors Apex Plaza Forbury Road Reading Berks RG1 1AX |
HIS HONOUR JUDGE J McMULLEN QC
Introduction
The Issues
Legal Basis of the claim against the 2nd respondent
10 "Wyeth were not and would never have been the applicant's employer. The applicant's claim against Wyeth cannot therefore be brought under section 6 of the Sex Discrimination Act, since that deals only with discrimination by employers. The claim is brought under section 42 of the Sex Discrimination Act on the basis that Wyeth, by failing to put forward the Applicant for employment with Quedos (assuming their failure to do so was influenced by the applicant's pregnancy), would have been aiding Quedos to do an unlawful act. Quedos' subsequent refusal to employ the applicant, acting on Wyeth's instruction or recommendation, would then have been tainted with discrimination. Quedos would have been acting unlawfully within section 6 (1) (c) of the Act by refusing or deliberately omitting to offer the applicant employment.
11 Had it been necessary to decide the point, this might have raised an interesting question as to what the words "knowingly aids" mean in section 41 (1), particularly if the tribunal were to find unconscious sex discrimination on the part of Wyeth interviewers. On the facts, as found by the tribunal, it was not necessary for the tribunal to consider that point."
The Decision
The Legislation
42 "Aiding unlawful acts
(1) A person who knowingly aids another person to do an act made unlawful by this Act shall be treated for the purposes of this Act as himself doing an unlawful act of the like description.
(2) For the purposes of subsection (1) an employee or agent for whose act the employer or principal is liable under section 41 (or would be so liable but for section 41(3)) shall be deemed to aid the doing of the act by the employer or principal.
(3) A person does not under this section knowingly aid, another to do an unlawful act if -
(a) he acts in reliance on a statement made to him by that other person that, by reason of any provision of this Act, the act which he aids would not be unlawful, and
(b) it is reasonable for him to rely on the statement.
(4) A person who knowingly or recklessly makes a statement such as is referred to in subsection (3) (a) which in a material respect is fa1se or misleading commits an offence, and shall be liable on summary conviction to a fine not exceeding [level 5 on the standard scale]."
63A "Burden of proof: employment tribunals
(1) This section applies to any complaint presented under section 63 to an employment tribunal.
(2) Where, on the hearing of the complaint, the complainant proves facts from which the tribunal could, apart from this section, conclude in the absence of an adequate explanation that the respondent -
(a) has committed an act of discrimination against the complainant which is unlawful by virtue of Part 2, or
(b) is by virtue of section 41 or 42 to be treated as having committed such an act of discrimination against the complainant,
the tribunal shall uphold the complaint unless the respondent proves that he did not commit, or, as the case may be, is not to be treated as having committed, that act."
Employment Tribunal Directions
12 "It was agreed with both counsel that the tribunal should follow the approach set out in the well known case in King v Great Britain China Centre [1991] IRLR 513, as endorsed by the House of Lords in Zafar v Glasgow City Council [1998] IRLR 36. Moreover, the tribunal should if necessary bear in mind the recent provisions of section 63A of the Sex Discrimination Act on the burden of proof."
The Facts
2 "The background facts to this dispute were that Wyeth, as we shall call it, is a manufacturer of drugs. It had an agreement with Quedos that Quedos would employ a sales team to promote Wyeth's products. Wyeth wanted a sales team put together, and arranged with Quedos that Quedos should put forward candidates for consideration by Wyeth at interview.
3 Ms Cunningham was a sales representative with Quedos at a time when she was pregnant; she applied for a post on the Wyeth sales team to Quedos; she was in fact put forward, but only after some protest, and her belief was that the reason she was not being put forward in the first place was because in her opinion she was treated in a discriminatory way because she had fallen pregnant. Nonetheless, after her protests, she was put forward for interview by Wyeth and Wyeth rejected her. The case put forward by Ms Cunningham was that she was rejected by Wyeth because she was pregnant. The case, as eventually put forward against Wyeth, was on the basis that Wyeth had provided knowing assistance to acts of discrimination by Quedos under section 42 of the Act.
4 She was interviewed, as we have said, on 23 January 2002; Wyeth's case was that she scored very badly compared to other candidates. One of the interviewers knew that she was pregnant, the other one that the Employment Tribunal found that it did not; Ms Cunningham said the whole interview was a sham. However the Employment Tribunal accepted the evidence of the interviewers that there was no bias and that she was fairly scored, even if the Employment Tribunal did not agree with every marking of her by the interviewers. The conclusion of the Employment Tribunal, having gone through all the evidence and considered in particular the evidence at the interview in great detail, was that they were:
"satisfied by the explanation given by the Second Respondent (that is Wyeth) for their failure to put the Applicant forward for employment by Quedos. She was not selected solely because, on the day, her performance at interview did not sufficiently impress her interviewers. It had nothing to do with her pregnancy. The question of drawing an inference, of sex discrimination or otherwise, does not therefore arise. The Second Respondents did not treat the Applicant less favourably by reason of her sex and her claim for sex discrimination against them therefore fails"."
16 "The tribunal found this a difficult decision. The tribunal could readily understand why the applicant believes that she is the victim of a co-ordinated series of actions designed to stop her getting a post in the new sales team because of her pregnancy. Certainly some of her treatment at the hands of Quedos calls for a detailed explanation in rebuttal, and the tribunal is conscious that it has not heard that. Much of the evidence, and certainly most of that relating directly to Wyeth's involvement, is neutral in itself; and equally consistent with the applicant's discrimination claim, or with the employer's innocent explanation.
17 In trying to resolve the conflict between the parties, the tribunal have focused on the numerous points in dispute between them over what happened at the interview…"
22 "It follows from our specific findings above that the tribunal are satisfied by the explanation given by the second respondent for their failure to put the applicant forward for employment by Quedos. She was not selected solely because, on the day, her performance at interview did not sufficiently impress her interviewers. It had nothing to do with her pregnancy. The question of drawing an inference, of sex discrimination or otherwise, does not therefore arise. The second respondents did not treat the applicant less favourably by reason of her sex, and her claim for sex discrimination against them therefore fails."
The Applicant's Case
7 "This ground of appeal is pursued on the basis that a "main allegation" against the Respondent was that the Respondent "knowingly assisted Quedos to unlawfully discriminate against the Applicant in not appointing her to 1 of the new roles."
8 The Applicant's case was not presented in this way at the Tribunal hearing. The Applicant was represented by Counsel. At the start of the case the Chair asked the Applicant's Counsel to formulate the case against the Respondent in the light of the withdrawal of her case against Quedos. The Applicant's Counsel indicated that the case was put on two bases:
(a) the Applicant was not selected because the second Respondent knew she was pregnant and
(b) the interview was a "face saving" exercise or a "sham" because the Second Respondent was aware of earlier events involving Quedos and was covering up for them (or that this should be inferred from the close relationship between Quedos and the Respondent at senior management level).
9 Both these allegations related to the conduct of the interview, although the second involved an issue to some extent of the Respondent's knowledge of earlier events.
"In preparing to hear the case, it was noticeable that the Originating Application never stated what the legal basis of the claim was. So far as the claim against Quedos was concerned, this was not unusual. It could readily be assumed that the claim was brought under Part II of the Sex Discrimination Act, probably Section 6, since Quedos was her employer. However, once the claim against Quedos was compromised, the claim against John Wyeth & Brother Ltd, the Second Respondent, was not so clear. Whilst the Originating Application outlined an allegation of discrimination, within Section 1 of the Sex Discrimination Act 1975, it did not state which part of the Act made this discrimination unlawful.
I have therefore raised this question with Mr Mason, Counsel for the Applicant, at the start of the hearing against the Second Respondent, once the claim against the First Respondent had been dealt with. After some hesitation, and discussion, he agreed that the claim against the Second Respondent was brought under Section 42 of the Sex Discrimination Act 1975, on the basis that if the Applicant succeeded on the facts against Wyeth (that is she established that they had rejected her application for employment with Quedos because she was pregnant), and, on the facts she established that Quedos would have acted on Wyeth's selection (or rejection), then Wyeth would be liable within Section 42. This discussion with Mr Mason is reflected in paragraph 10 of the Tribunal's Extended Reasons. …
"Looking at my notes of the two parties' submissions, the point was dealt with by Miss Gower for the Second Respondent, who went first, as follows. She said that the case against Wyeth had originally been put in two ways. It was alleged that the Applicant had been rejected by Wyeth:
(a) because the Wyeth interviewers knew she was pregnant and did not want to have a pregnant sales executive.
In the alternative,
(b) because the Wyeth interviewers were aware of Quedos's earlier allegedly discriminatory actions, and acted in concert with Quedos to further their discriminatory purpose, by refusing to select the Applicant then, on her merits, she should have been selected.
Both ways of putting the claim are forms of "knowing assistance" or aiding unlawful acts within Section 42. (b) was not pursued before us at the hearing, in the light of the settlement (without admission of liability) with Quedos. Miss Gower urged us to reject it in any event on the evidence.
In his submission, Mr Mason, for the Applicant, did not refer to (b) at all. He directed all his arguments to (a)."
"I am not in a position to comment on the technical legal discussions which occurred at the outset of the hearing and I cannot dispute any of what the Respondent's Counsel or the Tribunal Chairman have stated in relation to my Counsel's final submission simply because I cannot recall it and made no notes at the time."
(a) The change of mind by Wyeth;
(b) The timing of the events including the change of mind.
The chronology which we have set out above is illustrative of both points.
The Respondent's Submissions
The Legal Principles
25 "We therefore consider it necessary to set out fresh guidance in the light of the statutory changes:
(1) Pursuant to s.63A of the Sex Discrimination Act 1975, it is for the applicant who complains of sex discrimination to prove on the balance of probabilities facts from which the tribunal could conclude, in the absence of an adequate explanation, that the respondents have committed an act of discrimination against the applicant which is unlawful by virtue of Part II or which by virtue of s.41 or 42 SDA is to be treated as having been committed against the applicant. These are referred to below as 'such facts'.
(2) If the applicant does not prove such facts he or she will fail.
(3) It is important to bear in mind in deciding whether the applicant has proved such facts that it is unusual to find direct evidence of sex discrimination. Few employers would be prepared to admit such discrimination, even to themselves. In some cases the discrimination will not be an intention but merely based on the assumption that 'he or she would not have fitted in'.
(4) In deciding whether the applicant has proved such facts, it is important to remember that the outcome at this stage of the analysis by the tribunal will therefore usually depend on what inferences it is proper to draw from the primary facts found by the tribunal.
(5) It is important to note the word is 'could'. At this stage the tribunal does not have to reach a definitive determination that such facts would lead it to the conclusion that there was an act of unlawful discrimination. At this stage a tribunal is looking at the primary facts proved by the applicant to see what inferences of secondary fact could be drawn from them.
(6) These inferences can include, in appropriate cases, any inferences that it is just and equitable to draw in accordance with s. 7 4 (2) (b) of the Sex Discrimination Act from an evasive or equivocal reply to a questionnaire or any other questions that fall within s.74 (2) of the Sex Discrimination Act: see Hinks v Riva Systems EAT/501/96.
(7) Likewise, the tribunal must decide whether any provision of any relevant code of practice is relevant and if so, take it into account in determining such facts pursuant to s.56A (10) SDA. This means that inferences may also be drawn from any failure to comply with any relevant code of practice.
(8) Where the applicant has proved facts from which inferences could be drawn that the respondents have treated the applicant less favourably on the grounds of sex, then the burden of proof moves to the respondent.
(9) It is then for the respondent to prove that he did not commit, or as the case may be, is not to be treated as having committed that act.
(10) To discharge that burden it is necessary for the respondent to prove, on the balance of probabilities, that the treatment was in no sense whatsoever on the grounds of sex, since 'no discrimination whatsoever' is compatible with the Burden of Proof Directive.
(11) That requires a tribunal to assess not merely whether the respondent has proved an explanation for the facts from which such inferences can be drawn, but further that it is adequate to discharge the burden of proof on the balance of probabilities that sex was not any part of the reasons for the treatment in question.
(12) Since the facts necessary to prove an explanation would normally be in the possession of the respondent, a tribunal would normally expect cogent evidence to discharge that burden of proof. In particular, the tribunal will need to examine carefully explanations for failure to deal with the questionnaire procedure and/or code of practice."
26 "The right course, therefore, for the Tribunal, had it set out at first to find material facts, but in any event even though it did not quite follow that format, would be to address section 63A and, in particular, to conclude that the burden moves where the applicant has proved facts from which inferences could be drawn that the Respondents have treated the Applicant less favourably on the grounds of sex. It must therefore arrive at a conclusion that there is a prima facie case that the respondent has treated the applicant less favourably on the grounds of sex. Once it has done that, then it passes to consider the respondent's explanations; it must, if it has not already done so, make findings of fact, or draw inferences from findings of fact, for the purposes of concluding whether any of the explanations put forward by the Respondent satisfy them, the burden being on the Respondent to show that the less favourable treatment was not on the grounds of sex."
The President also indicated the following:
45 "We have considered the question whether, notwithstanding the apparently insufficient way in which the Tribunal approached the test under section 63A, and that fact that at no stage, either at the burden stage or after the passage of the burden, have they even used the words "less favourable treatment on grounds of sex", never mind made a finding, prima facie or otherwise, in regard to it, whether what is stated in the Decision in the earlier paragraphs can be sufficient to amount to an answer."
37 "Mr Underwood rightly accepted that it is not an error of law for a tribunal to have failed to follow sequentially the series of steps indicated by Bell J, provided that it is apparent that the tribunal's decision that they had properly applied themselves to considering whether the requirements of the statute were satisfied."
Conclusions
Disposal