Woodcock v Cumbria Primary Care Trust

UKEAT/489/09

Case details

Case citations
[2010] UKEAT 0489_09_1211 · [2011] ICR 143
Court
Employment Appeal Tribunal
Judgment date
12 November 2010
Judgment text

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Subjects
Employment law Age discrimination Unfair dismissal
Keywords
automatic unfair dismissal s.98A justification proportionality cost plus consultation redundancy Employment Equality (Age) Regulations 2006 windfall procedural safeguards
Outcome
appeal allowed in part
Judicial consideration

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Summary

It is incorrect to treat s.98A(2) of the Employment Rights Act 1996 as capable of curing a breach that gives rise to "automatic" unfair dismissal under s.98A(1).

Cost considerations are admissible when justifying age-based measures, but an employer relying upon them must show proportionality. A “cost plus” approach (cost considered with other factors) is orthodox; however the Tribunal expressed doubt whether cost could never by itself suffice.

Procedural safeguards such as consultation remain important but may, in narrow and particular circumstances, yield to proportionality-based justification.

Factual background

This is an appeal from an Employment Tribunal at Carlisle which dismissed claims for unfair dismissal and age discrimination after redundancy and reorganisation. The employee had been unsuccessful in selection for a successor chief executive post and was kept in temporary roles before being given twelve months' notice shortly before an age-critical birthday.

The Tribunal found the dismissal fair on the basis that following the statutory procedure would have made no difference. It also found that the timing of the notice, though age-related, was justified. The employer concedes the Tribunal erred on unfair dismissal but defends the age discrimination finding. The central questions are (1) whether the Tribunal was wrong to refuse an automatic unfair dismissal finding under s.98A(1); and (2) whether the timing of dismissal was objectively justified under the Employment Equality (Age) Regulations 2006.

Held

(1) The appeal is allowed on the unfair dismissal ground. The Tribunal was wrong in law to apply s.98A(2) so as to avoid a finding of automatic unfair dismissal under s.98A(1). The Employment Appeal Tribunal substitutes a finding that the dismissal was automatic unfair dismissal under s.98A(1). (See paras [26], [36].) (2) The appeal is dismissed on the age discrimination ground. The Tribunal correctly identified the discriminatory act as the timing of the dismissal and treated the aim as avoidance of a windfall pension cost. The Tribunal's reliance on a "cost plus" approach was lawful. In the particular facts the Tribunal was entitled to conclude that preventing a windfall and avoiding disproportionate pension costs was a legitimate aim and that the measure was proportionate. The Tribunal's factual findings on consultation and alternative employment were not perversely reached and supported justification. (See paras [77]–[84], [31], [36].) (3) The EAT expressed doubt whether the existing formulation that "cost alone" can never justify discrimination is strictly correct, but it declined to depart from the established "cost plus" approach and did not need to decide that issue for disposition of this appeal. (See paras [31]–[32].) (4) Outcome: substitute declaration of automatic unfair dismissal; no alteration to the Tribunal's decision on age discrimination. No order for reinstatement or re-engagement and no remittal for remedy because the redundancy payment extinguished awards in practice. (See paras [26], [58], [76].)

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Appellate history

  1. Employment Appeal Tribunal: Appeal from the Employment Tribunal at Carlisle; judgment delivered 12 November 2010; neutral citation [2010] UKEAT 0489_09_1211.
  2. Employment Tribunal (Carlisle): First instance hearing May 2009; judgment and reasons dated 12 August 2009; decision dismissed the unfair dismissal and age discrimination claims (subject to points now overturned by the EAT).

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