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We're expecting the Employment Rights Bill to finish its legislative journey any day, and we got the first taste of what some of the detailed regulations underpinning the new protections might look like. EAT decisions highlighted key points about procedural fairness in misconduct dismissals and unfair dismissal compensation for employees approaching retirement.
The Employment Rights Bill has its next (and possibly final) stage in the House of Lords on 28 October. If the Lords accept the Bill, it will become law when it receives Royal Assent. The Lords won’t usually block a government’s manifesto commitments, so it looks likely to pass.
Royal Assent isn’t the end of the story. Many changes won’t take effect for twelve months or more and the full impact of the legislation won’t be clear until the government publishes further legislation. The government promised it would consult on the new regulations and produced the first consultation exercises in late October, giving a clearer idea of how some areas may work in practice.
The initial consultations cover bereavement leave, enhanced protection against dismissals for pregnant employees and new mothers, the new trade union right to access workplaces and the employer duty to inform workers about their right to join a union. You can read about the consultations in more detail here.
One key feature of a fair disciplinary process is for an employee who’s accused of misconduct to have sufficient information about the allegations to be able to defend themselves. Another is for disciplinary managers to approach hearings with an open mind and to hear the evidence before reaching a decision. In Alom v The Financial Conduct Authority, the EAT considered whether not giving an employee a transcript of interviews conducted during a disciplinary investigation, or using a prepared script to conduct the hearing, made a dismissal unfair.
Mr Alom was accused of sending a harassing and threatening anonymous email to a colleague. He received a copy of the email before his disciplinary hearing, but not the transcript of interviews held with the colleague during the investigation. At the hearing, the disciplinary manager relied on a document prepared by the HR department which was described as a “script”. This described the email as unpleasant and said Mr Alom’s response when asked about it was evasive.
Mr Alom appealed to the EAT when his unfair dismissal claim failed. He said not giving him the transcripts meant he didn’t have sufficient information about the charges against him, and that the script showed that the disciplinary manager had prejudged the issue.
Neither argument succeeded. The ACAS Code of Practice requires the accused to have sufficient information to allow them to respond, which depends on the facts of the case. Mr Alom knew that he was accused of committing serious misconduct by sending an anonymous email with threatening content and why the employer believed he was the author.
Although parts of the script suggested that the decision maker had certain views, it didn’t follow that he had prejudged the decision or that the HR team had taken the decision. The tribunal accepted the disciplinary manager’s evidence that he decided to dismiss after hearing and considering all the evidence. The script didn’t suggest a particular outcome to the process and the tribunal could reach the conclusion it did.
How to calculate an unfair dismissal compensatory award for someone approaching state retirement age was the question for the EAT in Davidson v National Express Ltd. Ms Davidson’s dismissal was procedurally unfair, but the tribunal imposed significant deductions for contributory fault and to reflect a high chance that she would have been dismissed after a fair process.
Ms Davidson was 63 when the tribunal awarded compensation. It only awarded loss of future earnings until her 65th birthday, despite her evidence that she would work to age 70 because she could not afford to retire. It said this was just and equitable because she had already received loss of earnings for two and a half years and it was not certain that she would work beyond 65.
However, in an unfair dismissal claim, the question isn’t whether compensation is just and equitable in the round, but whether it is just and equitable having regard to the loss sustained because of the dismissal. Tribunals must evaluate that loss as best they can in light of the evidence, applying industrial common sense. The tribunal should have balanced the evidence that Ms Davidson intended to work beyond state retirement age against the risk that this would change, perhaps because of ill health or other circumstances beyond her control. Compensation for loss of future earnings shouldn’t be reduced simply because of the period of loss before the award.
Authored by Ed Bowyer, Stefan Martin, and Jo Broadbent.