Kilraine v Lion Academy Trust

The Court of Appeal dismissed the claimant's appeal against the Employment Appeal Tribunal. The central legal principle is that a fixed-term contract ends by the simple effluxion of time and does not require notice of termination unless the contract or clear provisions otherwise provide. The Burgundy Book (Conditions of Service for School Teachers in England and Wales, August 2000) was held to be incorporated into the claimant's contract, but its paragraph 4.1 (and related provisions) do not convert a fixed-term contract into a contract terminable only on notice. The tribunal’s approach of treating the contract as continuing absent formal notice was impermissible; the contract expired on its stated end date.

Other claims in the Employment Tribunal concerning unfair dismissal and detriments under the whistleblower provisions of the Employment Rights Act 1996 were dismissed and permission to appeal those parts to this Court was refused. The Court of Appeal also ordered the appellant to pay the respondent’s costs, summarily assessed at £25,000 inclusive of VAT.

Background and parties:

• The appellant was employed as a teacher at Thomas Gamuel Primary School under a signed engagement letter describing the employment as "fixed-term until 31 August 2014." The Burgundy Book (August 2000 edition) was found to be incorporated into her contract.
• The respondent is the Lion Academy Trust, which became the employing entity by TUPE from 1 January 2014.

Nature of claim and procedural history:

• The appellant brought multiple claims in the Employment Tribunal, including entitlement to three months' notice under the Burgundy Book when her fixed-term contract was not renewed, unfair dismissal and whistleblowing-related detriments under the Employment Rights Act 1996. The ET (Employment Judge Jones) held she was entitled to notice and awarded compensation for lost notice; the unfair dismissal and whistleblowing claims were dismissed. On appeal, Lavender J in the Employment Appeal Tribunal allowed the respondent's cross-appeal on the notice point, holding paragraph 4.1 did not apply to the expiry of a fixed-term contract. Permission to appeal to this Court was granted only on the notice question.

Issues framed by the Court of Appeal:

1. Whether paragraph 4.1 (and 4.4) of part 4 of section 3 of the Burgundy Book applied so as to require three months' notice prior to the expiry of a fixed-term contract, effectively converting a fixed-term contract into a contract terminable only on notice.
2. Whether the specification of the end date in the engagement letter and related starter documentation constituted adequate notice.

Court’s reasoning and decision:

• The court applied the principle endorsed in Department for Work and Pensions v Webley that it is of the essence of a fixed-term contract that it comes to an end on expiry of the fixed term by effluxion of time. There is no general requirement for further notice to bring a fixed-term contract to an end.
• The Burgundy Book provisions on notice were interpreted as addressing the amount of notice required where a contract is terminated by notice (typically in open-ended contracts) rather than as converting fixed-term contracts into contracts terminable only on notice. Paragraph 4.4’s use of the term "termination" was read in context to refer to termination by an act of one party rather than any means by which a contract may come to an end.
• The court rejected the appellant’s argument that the collective agreement should displace the clear express fixed-term in the engagement letter; such a significant change to the parties’ specific agreement would require far clearer provisions.

Other findings and costs:

• The court confirmed the ET’s finding of incorporation of the Burgundy Book but held that its notice provisions did not apply to the expiry of the fixed-term. The appeal was dismissed. The appellant was ordered to pay the respondent’s costs in the sum of £25,000 inclusive of VAT.

Appeal dismissed. The Court of Appeal held that a fixed-term contract expires by effluxion of time and does not require notice of termination under paragraph 4.1 of the Burgundy Book; paragraph 4.1/4.4 addresses notice where a contract is terminated by notice and does not convert a fixed-term contract into one terminable only on notice. The express end-date in the engagement letter governed.

Employment Tribunal (East London, Employment Judge Jones) found Burgundy Book incorporated and awarded three months' notice; Employment Appeal Tribunal (Lavender J) allowed respondent's cross-appeal, holding paragraph 4.1 inapplicable to expiry of a fixed-term contract; Court of Appeal ([2020] EWCA Civ 551) dismissed the claimant's appeal.