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You are here: BAILII >> Databases >> United Kingdom Employment Appeal Tribunal >> Tradition Securities & Futures SA v X & Anor [2008] UKEAT 0202_08_1808 (18 August 2008) URL: http://www.bailii.org/uk/cases/UKEAT/2008/0202_08_1808.html Cite as: [2009] ICR 88, [2008] IRLR 934, [2008] UKEAT 202_8_1808, [2008] UKEAT 0202_08_1808 |
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At the Tribunal | |
On 22 July 2008 | |
Before
THE HONOURABLE MR JUSTICE BEAN
MRS A GALLICO
MR D J JENKINS OBE
APPELLANT | |
MS Y |
RESPONDENT |
Transcript of Proceedings
JUDGMENT
For the Appellant | MR PAUL GOULDING Q.C. and MR DAVID CRAIG (of Counsel) Instructed by: Messrs Mishcon de Reya Solicitors Summit House 12 Red Lion Square London WC1R 4QD |
For the Respondents | MR JAMES LADDIE (of Counsel) Instructed by: Messrs Russell Jones and Walker Solicitors Swinton House 324 Gray's Inn Road London WC1Z 8DH |
SUMMARY
SEX DISCRIMINATION: Jurisdiction
JURISDICTIONAL POINTS: Working outside the jurisdiction
Where an employee of French nationality had worked for a French registered company for three years in Paris followed by two years in London, and alleged a course of sex discrimination and harassment against her extending over the whole five year period, the allegations of discrimination in Paris were not justiciable in an English employment tribunal.
THE HONOURABLE MR JUSTICE BEAN
The territorial jurisdiction appeal
"It is unlawful for a person, in the case of a woman employed by him at an establishment in Great Britain, to discriminate against her…."
"For the purposes of this Part… employment is to be regarded as being at an establishment in Great Britain unless… (a) the employee does his work wholly outside Great Britain…"
In 2005 this was amended to provide that employment is to be regarded as being at an establishment in Great Britain "if… the employee does his work wholly or partly in Great Britain", but it is agreed on all sides that the pre-2005 text is the relevant one for present purposes.
"11 To characterise the issue as one of "territorial jurisdiction", as the employment tribunal did,… does not shed much light on the problem. Indeed, it does not accurately reflect the basis of protection, as it exaggerates the territorial aspect of Part II of the 1976 Act. Territoriality was the theme of the submission of the Ministry of Defence that "all of the material events took place in Cyprus". In some respects territory is irrelevant to the question whether an employee is protected by Part II of the 1976 Act. The fact that, for example, an act of race discrimination is alleged to have been committed by an employer against an employee outside Great Britain does not of itself deprive the employment tribunal of jurisdiction to determine the complaint. If the employment of the employee is regarded as being at an establishment in Great Britain, Part II of the 1976 Act applies. It does not cease to apply simply because the employee was outside Great Britain, either at work or even away from work, at the time when the alleged racial discrimination occurred or because the alleged acts of discrimination took place outside Great Britain.
12 As will be explained, the history of the employment relationship has a greater bearing on protection from racial discrimination than the geography of where the alleged discriminatory acts occurred or where the applicant was when they occurred. The focus of the provisions in Part II defining who is entitled to protection is on whether "employment" is to be regarded as being at an establishment in Great Britain and on whether the employee "wholly or mainly" does his work outside Great Britain.
13 Unfortunately it has not proved possible (and it probably never will be possible) to achieve legal certainty in this area, either by the legislation or by the judicial interpretation of it. The practical difficulty in framing the legislation and in judicial generalisations about its effect is that employment relationships are increasingly complex, flexible and dynamic: they can endure for varying lengths of time; during the course of the relationship places, patterns and countries of employment can change; acts of discrimination may occur before the employment begins, during the period of employment or after the employment is over; and the discrimination may be a one-off act in one place, or a number of one-off acts in different places, or it may be an act extending over a period in one place or in a number of different places. In these circumstances it is difficult to find a satisfactory formula for fixing the boundaries of protection from discrimination and of the jurisdiction of the employment tribunal to determine complaints."
"17(5) Employment is not to be regarded as being at an establishment in Great Britain if the applicant "does his work wholly or mainly outside Great Britain". If that is the case, the applicant is excluded from protection and the employment tribunal has no jurisdiction to determine a claim of race discrimination. That would be so even if the alleged act of discrimination was committed against an employee in Great Britain.
(6) A complaint to an employment tribunal must relate to an unlawful act committed against the complainant contrary to Part II of the 1976 Act: section 54(1). A person has no right to complain to the employment tribunal about acts of race discrimination, if, at the time when they were committed, it was lawful to commit them against the complainant. If the complainant did his work wholly or mainly outside Great Britain at the time of the alleged discrimination, he had no right to present a complaint of race discrimination to the tribunal. Section 8(1) excluded him from the protection of Part II.
(7) How does the employment tribunal determine whether or not an applicant did his work "wholly or mainly outside Great Britain"? There is no express provision in Part II preventing the employment tribunal from taking into account the fact that, before the period during which the alleged unlawful acts of discrimination occurred, the employment of the applicant was at an establishment in Great Britain. On the contrary, it is, I think, implicit in the "wholly or mainly" formulation in section 8(1) that, on a challenge to the applicant's assertion that his employment was at an establishment in Great Britain, the tribunal should take into account the employment of the complainant over a longer period of time than the period to which the alleged acts of discrimination relate. What is the relevant period of time for this purpose? That is the key question, to which I shall return when considering the decisions of the employment tribunal and the appeal tribunal."
[It should be noted that with effect from 16 December 1999 the words "or mainly" were omitted from section 10 (1) of the SDA and from Section 8 (1) of the RRA.]
"26…. Although the right to present a complaint to an employment tribunal has to be addressed by reference to the situation of the employment of the applicant as at the time of the alleged unlawful discrimination, there is no express or implicit requirement that, in deciding whether the applicant did his work wholly or mainly outside Great Britain at that time, account should only be taken of where the applicant did his work during the period of time to which the complaint of discrimination related.
27 In my judgment section 8(1) contemplates that the relevant period for determining whether the applicant did his work wholly or mainly outside Great Britain is the whole period of employment. "Employment" is the entire relationship between employer and employee. It extends over a period of time. Normally the employment should be taken into account as a whole and not in segments. This approach is indicated by the opening words of section 8(1), under which employment has a continuing existence ("being") and a continuing location ("at an establishment in Great Britain"). The latter part of section 8(1) ("unless the employee does his work wholly or mainly outside Great Britain") also indicates that the whole period of the employment relationship, not just the limited period during which the discrimination is alleged to have occurred, is the yardstick by which it is determined whether, at the time of the alleged discrimination, the employee wholly or mainly did his work outside Great Britain.
28 In my judgment, none of the authorities cited as binding on this court prevent the court from construing Part II of the 1976 Act in the above manner. The cases do not require this court to hold that, as a result of being posted to Akrotiri towards the end of his service, the applicant lost all the protection that he might have acquired under Part II by virtue of earlier employment at establishments in Great Britain over the previous 16 years or so."
"33 As explained earlier, I agree that the questions of the jurisdiction of the tribunal and the right to present a complaint to it have to be considered as at the time of the alleged unlawful discrimination. The tribunal must decide whether, at that time, the applicant "wholly or mainly" did his work outside Great Britain. The Carver case did not, however, lay down a test of how the question of "wholly or mainly" was to be answered or hold that that question was to be answered solely by reference to the period of time during which the alleged discrimination occurred, disregarding the whole of the earlier history of his employment at establishments of the employer in Great Britain. In deciding whether an employee did his work "wholly or mainly" outside Great Britain the tribunal is not precluded by the Carver case from taking the whole employment relationship into account. …"
promulgated on 31 January 2008 they said:-
"The Paris allegations concern sexual harassment, direct sex discrimination and victimisation under the provisions of the Sex Discrimination Act. They are similar types of allegations to those made in respect to what occurred when the [first claimant] was working for the First Respondent in London, although for the most part the perpetrators of the acts of discrimination are different persons. It is also important to note that the claimant's case is that when the claimant worked in Paris up to and including the end of the period when the claimant was working in London. The Tribunal passes no comment on the merits of the allegations, which are for a full Tribunal to determine upon all the evidence, but if it be the case that there was an act of sex discrimination extending over the period from the time of the work in Paris, up to and including the time of the work in London then that is an important factor in determining the territorial jurisdiction point. …
20 The Tribunal considers that the judgment in Saggar makes it clear that, although the question of jurisdiction is to be considered on the basis of the whole period of employment being taken into account, the question is whether or not at the time of the alleged discrimination it could be said that the claimant did her work wholly or partly in Great Britain. It is clear upon the material before the Tribunal at the Pre-hearing Review that at the time of the individual acts which are alleged to have taken place in Paris the [first claimant] did not do her work wholly or partly in Great Britain; it was entirely work done in France. However, if it can be said that the individual acts in Paris were part of an act of harassment, direct discrimination or victimisation extending over a period which covers both the work in Paris and the work in London then it seems to the Tribunal that there would be jurisdiction to consider the allegations in relation to what occurred in Paris as part of a continuing act extending up to and including the period of employment in London. It is not for this Tribunal at the Pre-hearing review to determine whether or not what occurred in Paris is part of a continuing act of discrimination covering the period both in Paris and in London. Indeed, in order to determine that question we would have to hear all of the evidence, which we have plainly not done at the Pre-hearing Review. The question, for our purposes, is whether or not it is arguable that there was a continuing act of discrimination covering both the time in Paris and the time in London.
21 The case presented on behalf of the claimant is that there was within the First Respondent's organisation a culture of discrimination which revealed itself both in Paris and in London, effectively connived at by the First Respondent's senior management and that under the Hendricks principle, it is arguable that the individual acts of discrimination are to be properly seen as part of an act extending over a period. Whilst the Respondents in their submissions have made a number of good points in opposition to that contention, bearing in mind that the Tribunal at this stage only has to be satisfied that there is an arguable case of a continuing act, we conclude that we cannot say without hearing the evidence relating to the acts in question, that there is no act extending over a period. Accordingly, it will be for the Tribunal at the merits hearing determine whether or not the acts committed in Paris are part of acts extending over a period, parts of which took place when the Claimant was employed in London. If the Tribunal so determines upon the evidence then the Tribunal will have jurisdiction to determine upon the evidence then the Tribunal will have jurisdiction to determine [her] complaints about the discrimination which took, place whilst she was in Paris."
"the [Race Relations] Act was brought into remedy a very great evil. It is expressed in very wide terms, and I should be slow to find that the effect of something which is humiliatingly discriminatory in racial matters falls outside the ambit of the Act."
The waiver of privilege appeal
"(para 21) We went to see a lawyer, Samantha Mangwana at Russell Jones & Walker the day after the meeting, but at that stage it was too difficult for either of us to speak very much about what had happened to us. I remember that both [my sister] and I were just crying and crying when we went to see Ms Mangwana and started to talk about what had just happened. Instead of words, it was mainly tears that came out. I felt so emotional when [my sister] was talking about the photograph incident, and then found it almost impossible to speak; she was crying also. It was difficult enough for both of us just trying to summarise what had happened at our meeting; we were both in a terrible state. It was not for many months that is became easier to talk about everything that had happened; at that stage we were both still very repressed, and neither of us had come to terms with matters enough to talk about them, even to our lawyer."
"went to meet with our barrister for the first time to seek his advice. We had to discuss precisely what had happened to us during our work in London, and we started to speak in detail about what the men at the desk had done to us. This was a highly traumatic experience, and I felt ashamed and embarrassed. The more we spoke about it, the more we realised what had happened to us, and the more ashamed and upset we both felt. Actually talking about, and expressing out loud to our lawyers, the daily hell we had faced at hell had brought it all back and it was as if we were living those years of hell all over again. We had survived until then by trying to block everything out, to forget it all. At that meeting, it was as if everything we had repressed came crashing out."
"This really affected our ability to prepare our case. Our lawyers would write us emails seeking further information, but we couldn't bring ourselves to answer them. After a while, we stopped turning the computer on, as we were too scared about what we might find in our email inbox. But we were still obsessive about work, and thought about our case all the time. I would lie in bed thinking about what my lawyer had asked me to do, but I couldn't bring myself to write back to her. She would write more and more emails, but it took us over two weeks to build up the strength to write back to them. It was like a vicious circle. I would avoid my lawyers' emails as I didn't want to think about my case, but the more I avoided them, the more guilty I felt. I felt broken hearted and black inside."
"However it is important to note that these passages in the witness statement in essence describe the claimant's state of mind and not the detailed contents of the communications to her solicitors or counsel. In so far as there is any reference to the contents of the clients/lawyer communications such reference is in the view of the Tribunal fleeting and tangential. Indeed it serves only to provide a context for the descriptions of the claimants' states of mind. This conclusion is one which it was submitted on behalf of the claimants the tribunal should draw, and we agree with these submissions….
6… It must be remembered that the purpose of the evidence which is referred to in the witness statements is to enable the Claimants to set out material upon the basis which they will be in a position to submit that it is just and equitable to extend time in order for a Tribunal to properly consider that contention. It is necessary for the Tribunal to have regard to all the circumstances and so the Claimants have to explain:
that they were unable to give full instructions to their lawyers and
why they were unable to do so
The Claimants should be in a position to be able to do that without waiving legal professional privilege. Of course, whether they have waived privilege depends upon the extent to which they go in giving evidence. The Tribunal concludes that the evidence in the various paragraphs referred to above is plainly directed towards the Claimants' inability to articulate what had occurred because of their mental state. In so far as there is any reference to the contents of the client/lawyer communications we agree with the submission made on behalf of the Claimants that such references are fleeting and tangential, serving only to provide a context for the descriptions of the Claimants' states of mind. The evidence that they have given is not truly evidence of the contents of the privileged communications but only evidence of their own state of mind and ability to give instructions over the material period of time.
7…In those circumstances the Tribunal concludes that by virtue of the passages in the witness statement which are relied upon by the First Respondent, the Claimants have not waived privilege and in those circumstances, the principle of legal professional privilege must apply and the First Respondent's application for disclosure which is supported by the Second Respondent is refused."
The length of hearing appeal
"As to the duration of the hearing, the Judge considered it proportionate that the evidence should be concluded in 8 weeks, giving each party 4 weeks for cross examination of the other side's witnesses. This time estimate was on the basis of statement being taken as read. A particular factor which the judge took into account was the fragile mental health of the Claimants and the risk that if their cross examination was unduly extended that the toll on their health would be too great, resulting in the trial becoming ineffective."