Salisbury NHS Foundation Trust v Wyeth (Unfair Dismissal: Automatically unfair reasons) [2015] UKEAT 0061_15_1206

EAT
Salisbury NHS Foundation Trust v Wyeth (Unfair Dismissal: Automatically unfair reasons)
[2015] UKEAT 0061_15_1206 · 2015-06-12
[43]“ 43. … liability arises if the protected disclosure is a material factor in the employer’s decision to subject the claimant to a detrimental act. … Igen [that is a reference to the discrimination case on the burden of proof of Igen Ltd v Wong [2005] IRLR 258 CA] is not strictly applicable since it has an EU context. However, the reasoning which has informed the EU analysis is that unlawful discriminatory considerations should not be tolerated and ought not to have any influence on an employer’s decisions. In my judgment, that principle is equally applicable where the objective is to protect whistleblowers, particularly given the public interest in ensuring that they are not discouraged from coming forward to highlight potential wrongdoing.” 25. Turning, then, to the protection against dismissal, he continued:[44]I accept … that this creates an anomaly with the situation in unfair dismissal where the protected disclosure must be the sole or principal reason before the dismissal is deemed to be automatically unfair. However, it seems to me that that is simply the result of placing dismissal for this particular reason into the general run of unfair dismissal law. As Mummery LJ cautioned in Kuzel v Roche Products Ltd [2008] IRLR 530 at paragraph 48, in the context of a protected disclosure claim:
‘Unfair dismissal and discrimination on specific prohibited grounds are, however, different causes of action. The statutory structure of the unfair dismissal legislation is so different from that of the discrimination legislation that an attempt at cross fertilisation or legal transplants runs the risk of complicating rather than clarifying the legal concepts.’
[45]In my judgment, the better view is that s.47B will be infringed if the protected disclosure materially influences (in the sense of being more than a trivial influence) the employer’s treatment of the whistleblower. If Parliament had wanted the test for the standard of proof in s.47B to be the same as for unfair dismissal, it could have used precisely the same language, but it did not do so. ” 26. Moreover, when asking what was the reason or principal reason for a dismissal, that is a “reason why” question, which is not the same as a “but for” test, see as put by HHJ Peter Clark in the case of Arriva London South Ltd v Nicolaou [2012] ICR 510 :
“28. The reason why question must not be confused with the “but for” test. … In short, whereas the but for test may be appropriate in “criterion” cases … it is the reason why question which prevails in circumstances where the employer’s mental processes (conscious or subconscious) are in issue. The latter question arises in the present case.”
[27]It can, furthermore, be the case that an employer may dismiss an employee in response to a protected disclosure but still (see Martin v Devonshires Solicitors [2011] ICR 352 EAT, at paragraph 22) say that the reason for the dismissal “ was not the complaint [the protected disclosure] as such but some feature of it which can properly be treated as separable ”. Martin v Devonshires was a case involving a protected act for victimisation purposes, but the reasoning can be read across to a protected disclosure claim. The classic example of this distinction might be a dismissal that apparently takes place in relation to the making of a protected disclosure but where it is not, in fact, that disclosure that is the reason for the dismissal but the manner in which it was made.28. A subsequent division of the EAT, in Woodhouse v West North West Homes (Leeds) Ltd [2013] IRLR 773 per HHJ Hand QC, warned that ETs should not be too quick to see cases as fitting within the Martin v Devonshires template; that would generally be the exception rather than the rule, and it was right that appellate courts remain mindful that the assessment will be for the ET as the first-instance Tribunal (as acknowledged in Martin ) .29. Returning to the case-law on protected disclosures, it has been further recognised that there can be a distinction between the protected disclosure and the way in which the Respondent responds to it, see per Carnwath LJ, sitting in the EAT in Price v Surrey County Council and Governing Body of Wood Street School [2011] UKEAT/0450/10/SM:
“52. This approach in our view reflects a misconception of the statutory scheme. It is about the protection of “whistle-blowers”
. The purpose is to ensure that employees do not suffer simply because they have had the courage to speak up about problems affecting their workplace. Thus it is the “making” of the protected disclosure which is the focus of attention, and which must be the principal reason for the dismissal, or for the other detrimental action or inaction. In this case, by contrast, Mrs Price’s forced resignation came about, not because of the making of her complaint as such, but because of the inadequacy in one important respect of the authorities’ response to it.” 30. Where an ET has to identify whether a protected disclosure was the reason or principal reason in constructive dismissal case, it will be important to ensure that the correct focus is maintained. As was held in Berriman v Delabole State Ltd [1985] ICR 546 CA:
“… It is the employers’ reasons for their conduct not the employee’s reaction to that conduct which is important. …” (page 551B) 31. In such a case, the ET will have identified the fundamental breaches of contract that caused the employee to resign in circumstances in which she was entitled to claim to have been constructively dismissed. Where no reason capable of being fair for section 98 purposes has been established by the employer, that constructive dismissal will be unfair. Where, however, the reason remains in issue because there is a dispute as to whether it was such as to render the dismissal automatically unfair, the ET then has to ask what was the reason why the Respondent behaved in the way that gave rise to the fundamental breaches of contract? The Claimant’s perception, although relevant to the issue why she left her employment (her acceptance of the repudiatory breach), does not answer that question. Submissions The Respondent’s Case 32. Ms Balmer candidly acknowledged this was a case where the Respondent had not covered itself in glory; it had acted unfairly and had breached the Claimant’s terms and conditions. She equally accepted that the appeal might be seen to be academic: the section 98 unfair dismissal finding was not contested and the compensation due might prove to be the same in either event. All that said, the case raised an important legal issue on the section 103A complaint: if the ET had applied the correct test, the result would have been different. 33. The Respondent relied on the distinction in approach between section 103A and section 47B ERA . The latter required only that the protected disclosure was a material factor. Section 103A required it to be the reason or principal reason (see Fecitt , CA). 34. The first question that arose was how the ET was to go about constructing the reason for the constructive dismissal. The answer was (see Berriman ) all about identifying the employer’s reason for its conduct. So the ET had to identify the acts that gave rise to the constructive dismissal, giving each such weight as was correct. The ET here seemed to have focussed on two acts: (1) the failure to act on the Claimant’s complaints and call him as a witness to the investigation; (2) moving the Claimant to the day shift. 35. When then turning to the reason for those acts, a “but for” test was not the right approach. A “but for” test effectively held that, if X had not happened, then Y would not have happened. That was not the same as “the reason why”, which was not determined by the contextual fact of a protected disclosure having been made but required a careful examination of what was in the employer’s mind. Moreover, if an employer gave an account of why it has so acted, other than the protected disclosure, the ET needed to determine whether that reason was false; only then should it go on to consider the alternative prohibited reason. And, if it so found the employer’s reason to be false, it would need to explain why it had done so. 36. In this case, following from the way in which the Claimant had put his argument, the ET had wrongly applied a “but for” test. It had failed to make reference to the relevant case-law and had erred in seeing the context provided by its recitation of facts at paragraph 86 as determinative of the question before it (see paragraph 87). 37. Alternatively, if the ET had applied the “reason why” test, then it had failed to analyse Mrs Hope’s reasons; it did not consider the other reasons that may have led her to act as she did and it needed to do so. 38. On the Respondent’s moving the Claimant to the day shift, the Claimant’s case was that that was a deliberate act to make his life difficult. The ET did not make that finding but arguably accepted the Respondent’s arguments (see paragraph 69). If it had not accepted those arguments, it would have needed to explain (given the evidence adduced by the Respondent) why. This was crucial; it went to the reason for one of the matters the ET found caused the Claimant to leave. The ET had needed to make clear findings as to what were the reasons in the Respondent’s mind. It was not sufficient merely to refer to unfair process, lack of consultation. That might go to fairness but could not of itself support a finding that the reason for taking the Claimant off the night shift was the protected disclosure. 39. As for the apparent finding that Mrs Hope wanted to exclude the Claimant from the investigation, although the ET concluded that she wanted the Claimant off the night shift for the period of the investigation so he would play no part in it, the ET’s own finding (at the end of paragraph 87) was the best indication of what really motivated Mrs Hope; that was that it was her concern that if he was interviewed, it would indicate she had not deemed it necessary to carry out an investigation in 2011. So the reason, or principal reason, was management face-saving. The protected disclosure provided the context but was not itself the reason. The Claimant's Case 40. Mr Wyeth first referred me to paragraph 66 of Fecitt in the EAT, where a balance of probabilities test was applied, which, he observed, was the same approach as adopted by the ET in this case. He did not accept that the ET here had applied a “but for” test. He relied on the reasoning at paragraph 87, in particular where the ET found that, on a balance of probabilities, Mrs Hope did not want him working on the night shift. 41. He further made it clear that he had at all times relied on the 2011 complaint as a protected disclosure. 42. As for the Respondent’s evidence before the ET, he took issue with how that had been represented on this appeal. It was, for instance, apparent that Mrs Hope’s evidence to the ET as to her reason for moving the Claimant from the night shift could not be correct, as the dates did not tally with ODP1’s suspension; there was good reason for the ET not to accept it. Moreover it made no sense, as the only instability that had arisen on the night shift arose from Mrs Hope requiring the Claimant to put in a written complaint about ODP2’s bullying and harassment, which she then relied on to move the Claimant on to day shifts. In truth, there was no stabilising to do and indeed the Claimant had worked with ODP2 for a whole week after the bullying incident with no problem. He was only moved after he had put in the written complaint (as he had been told to do). The ET had effectively accepted this (see the finding at paragraph 68 where the ET observed that the Claimant had worked with ODP2 for ten days after the event he complained of) and asked: “If safety was an issue why was the Claimant not moved immediately?”
Mrs Hope’s real motivation was to keep the ODPs on side because the Respondent was operating with only one ODP on night shift, sometimes covering two operations, and that breached regulations. The Respondent’s Submissions in Reply 43. Ms Balmer noted the Respondent’s position that a number of the points the Claimant had raised on the facts were not accepted. Discussion and Conclusions 44. On the automatically unfair - protected disclosure - dismissal claim, the starting point was provided by the ET’s conclusion on the question of dismissal (see paragraphs 72 and 76 to 78). The Claimant was constructively dismissed because he left as a result of the Respondent having conducted itself in a manner likely to destroy or seriously damage the relationship of trust and confidence essential to the employment contract. It did that (on the ET’s findings) by: (1) moving him, without consultation, from the night to the day shift; (2) ignoring the difficulties that had arisen from this sudden move; (3) continuing not to investigate and resolve his complaint of bullying; (4) leaving him “temporarily” working on the day shift; (5) not including the Claimant in the investigation into ODP1; and (6) sending the letter of 21 March 2013 (to the Claimant and other staff) with what might be seen as a veiled warning to him. 45. It was for the ET to decide, on the evidence, what weight to give to each of those factors. From its analysis at paragraph 87, it seems reasonable to adopt Ms Balmer’s identification of the main factors found by the ET to be the move onto the day shift and the exclusion of the Claimant from the investigation. The question for the ET was: what was the reason, or principal reason, in the Respondent’s mind for that conduct? 46. In carrying out the necessary assessment, the ET had to maintain focus on the reason for the dismissal, not simply the context; the question could not be answered by simply applying a “but for” analysis. Understandably the Claimant had put his case on that basis: from his point of view, the position was clear: but for his disclosures about ODP1, none of the other events would have occurred. Adopting that approach might indeed seem to accord with common sense; from his point of view the reason for his constructive dismissal was therefore his protected disclosures about ODP1. The difficulty is that this approach focuses on the context; which is not the same thing as actually identifying the reason for the Respondent’s actions. 47. I do not, however, consider that the ET fell into this error. Setting out the way in which this Claimant put his case is not the same as adopting that approach. In my judgment, the ET kept in mind that it had to find the reason or principal reason operating on the Respondent’s mind; the fact that the Respondent would not have so conducted itself but for the protected disclosure was not enough. In this regard, although it would have been helpful if the ET had set out the relevant legal principles (as summarised above), I do not consider its failure to do so demonstrates it fell into the error of applying a “but for” test to the question it had to determine. 48. As the ET identified, the Respondent had not put forward a reason that was capable of being fair for statutory purposes. That meant that the dismissal was unfair under section 98 but did not mean it was thereby automatically unfair under section 103A. The Respondent had put forward some evidence by way of explanation for its conduct. On the move of the Claimant from the night shift, Mrs Hope had explained her concern about what she described as a volatile situation and the need for an experienced ODP to work on the night shift. As she was aware that ODP1 was likely to be suspended (thus, she was already going to be faced with the difficulty of finding alternative cover), she would not wish to move ODP2 as well. Although the ET accepted that evidence at face value, it is unclear whether it also allowed that it might provide a potential explanation for the move of the Claimant or whether it rejected that outright as a potential explanation (having found - see paragraph 68 - that the safety issue had not been made out). Given the importance of this factor (on the ET’s findings), it was fundamental that it engaged with the Respondent’s explanation for why it had acted as it had and made clear findings as to whether that explanation was accepted or rejected and, if rejected, why. 49. As for the exclusion of the Claimant from the investigation process, the ET’s conclusion does seem to identify Mrs Hope’s desire for a face-saving avoidance of disclosure of the 2011 complaint and how she had failed to deal with it (see the end of paragraph 87). If that was indeed the reason - whilst hardly laudable - I can see how that might be said to be other than the protected disclosure itself (albeit the protected disclosure would certainly have provided the context). I cannot, however, be certain that is what the ET ultimately found or as to how that would then impact on its assessment of the reason or principal reason for the dismissal. 50. Although I appreciate this may be difficult for Mr Wyeth to understand, I am bound, therefore, to allow the appeal on the second of the points of challenge, namely that the ET failed to conduct the necessary critical analysis of the Respondent’s reason for its conduct and failed to properly explain its findings and reasoning in that regard. 51. I turn to the question of disposal. The Respondent urges that the EAT should substitute its own conclusion for that of the ET. On my analysis of the ET’s Judgment, however, more than one outcome is possible and it would be wrong for me to adopt that approach. The matter must therefore be remitted to the ET, and the only question which remains is whether it should be the same or a different ET. 52. The Respondent urges I remit the matter to a different ET: (1) that would give it the opportunity to be heard by a full, three-member, panel, which would be preferable (albeit not a statutory requirement) in this type of case; (2) there is always an element of prejudice to a party who has appealed from a decision; (3) time has passed and there is no particular advantage to remit to the same ET; and (4) both parties could approach the matter afresh, taking the findings on constructive dismissal as read: the new ET would then hear the evidence on the section 103A point afresh, and it might be open for the Claimant (depending on how things had been dealt with at earlier stages) to also rely on the 2011 disclosure as a protected disclosure. 53. From his point of view Mr Wyeth frankly acknowledges that his real concern is that the Remedy Hearing on the unfair dismissal case (due to be heard in July) goes ahead. Apart from that, he does not have any particular view as to the order I should make. Ms Balmer has helpfully indicated that the Respondent also considers the Remedy Hearing should go ahead and recognises it might be helpful for that hearing to take place before anything else happens so the likely level of award is known. That, of course, is a matter for the parties and the ET, but I also see no reason why the Remedy Hearing should not take place. 54. I return, then, to the question of disposal. I have in mind the guidance laid down in Sinclair Roche Temperley v Heard and Fellows [2004] IRLR 763 . In terms of the time that has passed, the position is neutral: no doubt this case would soon come back to mind, particularly as the Employment Judge will be conducting the Remedy Hearing. On the other hand another ET would quickly pick up the case, being bound by the findings that have already been made, and not disturbed, on constructive unfair dismissal. Whilst there may be a sense of prejudice for a party who has appealed a Judgment of an ET, I am satisfied that this Employment Judge would approach their task on any remission in an entirely professional way; that would cause me no concern. I do, however, see that there are advantages for both parties to be able to deal with the issues afresh on the basis of the findings made on the constructive dismissal claim. I also consider there is something in Ms Balmer’s point that it is likely to be preferable for this matter to be heard by a full ET, with lay members. It appears that the question of the appropriateness of this case being heard by a Judge alone or a fully constituted ET might have been missed as it seems (reading from paragraphs 1 to 6 of the Judgment) that the section 103A claim got somewhat lost the proceedings. 55. I therefore direct that the matter should be remitted to a differently constituted ET with the recommendation, to the extent practicable, that it be an ET sitting with lay members.