Employer's justice - the worker had his hours cut and suffered racial discrimination yet the Court of Appeal finds his dismissal 'equitable' and 'fair'

Orr v Milton Keynes Council [2011] EWCA Civ 62

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22/02/2011

  • So long as the decision maker makes a fair decision on the facts known to him at the time, his decision is unassailable.
  • Caselaw dictates that the truth emerging at a later date will not change matters; a tribunal will not be allowed to take a fresh look at the case.
  • The paradox was mentioned of dismissal decisions normally being a matter for the employer whilst discrimination may be pursued at tribunal.

The worker of Jamaican origin was on one occasion insubordinate and on another occasion rude to his line manager. An investigation was made by another manager who then conducted the disciplinary hearing. He found the worker (who took no part in the hearing) guilty of gross misconduct and dismissed him for reason of both incidents. The worker was represented on appeal but the dismissal was confirmed. It later emerged that the worker's line manager had provoked the second incident through his use of discriminatory language and had also previously acted in an underhand way to reduce the worker's hours.

In light of the facts the claimant argued that his dismissal should be declared unfair. Bedford Employment Tribunal found the dismissal was fair but that there had been unlawful race discrimination. The EAT and now the Court of Appeal have both rejected the claim for unfair dismissal (with Sedley LJ dissenting).

In unfair dismissal claims evidence that emerges after the dismissal is discounted by tribunals. The Court of Appeal needed to decide whether the fact that the worker's line manager knew all the time the truth about what had really happened, meant that the employer could be understood to have known the facts about the matter. This was despite the decision-maker himself being kept in ignorance of the truth. If the employer was understood to have by way of the line manager to have been in possession of the fact that the claimant's behaviour on the second occasion had been provoked, the basis for the dismissal would be undermined.

At issue was Section 98 (4) of the Employment Rights Act 1996 (based on s.24(6) of the Industrial Relations Act 1972) whereby it needs to be determined, 'whether the dismissal is fair or unfair, (a) whether the employer acted reasonably or unreasonably in treating it as a sufficient reason for dismissing the employee, and (b) in accordance with equity and the substantial merits of the case.

Although the approach as to whether a dismissal had been fair was non-technical ( Phillips J in Grundy v Wills [1976] ICR 323 & Earl v Slater and Wheeler (Airlyne) Ltd [1972] ICR 508 )the Wednesbury rationality test was adopted after the EAT decision in British Home Stores v Burchell [1980] ICR 303. At the hearing of Burchell the employee was unrepresented and failed to appear whereas the employer was represented by a distinguished barrister. Burchell however became authoritative after its approval by the Court of Appeal in Weddel and Co v Tepper [1980] ICR 286, and Foley v Post Office [2000] ICR 1283.

Sedley LJ's view that the line manager could be held to be of a sufficient level of authority in the institution for the institution itself to be considered as having knowledge of what really transpired, and to make the decision-maker's decision void. Sedley argued that the decision maker appointed by the employer should be expected to know all the relevant facts already available to the employer. According to Sedley LJ it should be possible that, "a bona fide decision can be undone through no fault of the decision-maker, but that is a price which both equity and the substantial merits of the case make it fair for an organisation to pay." The Court of Appeal majority decision rejected this approach.

Lord Sedley cites the paradox of dismissal being a matter for the employer (so long as procedures were carried out properly) whilst discrimination may be pursued at tribunal.

For Lord Sedley what is important is, "the totality of information which the employer holds when deciding whether or not to dismiss an employee. No corporation, and certainly not a public law body such as the respondent, can ordinarily plead that its left hand did not know what its right hand was doing", and s.98(4)(b) should be treated as "a requirement for a final look". Caselaw however prevents this.

This is surely a sad state of affairs where the second highest court in the land feels itself bound to make what it sees as a patently unjust decision, where a worker was dismissed on the basis of lies and discrimination. It is maybe time for the Supreme Court to be given an oversight role in cases that are not the subject of appeal to it, but nevertheless bring up important matters of caselaw. The Devis v Atkins based application of s.98(4)(b)is overdue for this treatment. Maybe the Court of Appeal would be able to put questions to it for rulings on specific points of law, in the same way as happens with regard to the ECJ on points of european law.

Other cases cited:

Campion v Hamworthy Engineering Ltd [1987] I.C.R. 966;     Enable Care and Home Support Ltd [2010] UKEAT/0366/09/SM;     Foley v Post Office [2000] I.C.R. 1284;     Gilham v Kent County Council (No. 2) [1985] I.C.R. 233;     Hadden v Van Den Bergh Foods Ltd [1999] ICR 1150      Hampshire Land [1896];     Iceland Frozen Foods Ltd. v. Jones [1983] I.C.R. 17;      Lindford Cash & Carry Ltd v Thompson [1989] ICR 518      London Ambulance Service NHS Trust v Small [2009] EWCA Civ 220, [2009] IRLR 563('range of reasonable responses' where an employment tribunal may not substitute itself for the employer);     Meridian Global Funds Management Asia Ltd v Securities Commission [1995] 2 A.C. 500;      Monie v Coral Racing Ltd [1981] I.C.R. 109;      Morgan v Electrolux Ltd [1991] I.C.R. 369;     Neale v Hereford and Worcester County Council [1986] I.C.R. 471;     Weddel v Tepper [1980] I.C.R. 286;     West Midlands Co-operative Society Ltd v Tipton [1986] 1 A.C. 536;    

Transcript of the judgement:-   Orr v Milton Keynes Council [2011] EWCA Civ 62
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