Mr E Eden v Skills and Work Solutions Ltd: 2402683/2017
Employment Tribunal
Published on 17 August 2018, 12:26
- Summary
- Employment Tribunal decision.
- categories
-
breach-of-contract redundancy
- country
- england-and-wales
- decision date
- 2017-11-14
Change History
-
Addition of Reasons.
-
First published.
Full Decision Text
Raw text extracted from the official documents.
Case No. 2402683/2017
1
EMPLOYMENT TRIBUNALS
Claimant: Mr E Eden
Respondent:
Skills and Work Solutions Limited
HELD AT:
Manchester ON: 23 and 24 October 2017
BEFORE: Employment Judge Aspden
REPRESENTATION:
Claimant:
Respondent:
Mr Mensah, Counsel
Mr Lewinski, Counsel
JUDGMENT
The judgment of the Tribunal is that:
1. The respondent is required to pay to the claimant a redundancy payment
under section 135 of the Employment Rights Act 1996 in the amount of £12,933.00.
2. The respondent breached the claimant's contract of employment in failing to
pay a redundancy payment. The claimant's claim of breach of contract in relation to
redundancy pay is made out. In addition to the amount required to be paid under
section 135, the respondent is ordered to pay to the claimant the sum of £25,000.00
as damages for breach of contract.
3. Written reasons have been requested by the respondent and will be provided
in due course. This judgment, and the reasons that follow, will be uploaded to the
online database of employment tribunal judgments, which can be accessed at
https://www.gov.uk/employment-tribunal-decisions .
Employment Judge Aspden
Date______14 November 2017______
JUDGMENT SENT TO THE PARTIES ON
17 November 2017
FOR THE TRIBUNAL OFFICE
Case No. 2402683/2017
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NOTICE
THE EMPLOYMENT TRIBUNALS (INTEREST) ORDER 1990
Tribunal case number: 2402683/2017
Name of case: Mr E Eden v Skills And Work Solutions
Limited
The Employment Tribunals (Interest) Order 1990 provides that sums of money
payable as a result of a judgment of an Employment Tribunal (excluding sums
representing costs or expenses), shall carry interest where the full amount is not paid
within 14 days after the day that the document containing the tribunal’s written
judgment is recorded as having been sent to parties. That day is known as “the
relevant decision day”. The date from which interest starts to accrue is called “the
calculation day” and is the day immediately following the relevant decision day.
The rate of interest payable is that specified in section 17 of the Judgments Act 1838
on the relevant decision day. This is known as "the stipulated rate of interest" and
the rate applicable in your case is set out below.
The following information in respect of this case is provided by the Secretary of the
Tribunals in accordance with the requirements of Article 12 of the Order:-
"the relevant decision day" is: 17 November 2017
"the calculation day" is: 18 November 2017
"the stipulated rate of interest" is: 8%
MR S ARTINGSTALL
For the Employment Tribunal Office
Case No. 2402683/2017
1
EMPLOYMENT TRIBUNALS
Claimant: Mr E Eden
Respondent:
Skills and Work Solutions Limited
HELD AT:
Manchester ON: 23 and 24 October 2017
BEFORE: Employment Judge Aspden
REPRESENTATION:
Claimant:
Respondent:
Mr Mensah. Counsel
Mr Lewinski, Counsel
Judgment having been sent to the parties and written reasons having been
requested in accordance with Rule 62(3) of the Employment Tribunal Rules of
Procedure 2013 the following reasons are provided:
REASONS
Claims and Issues
1. The Claimant brings a reference to determine his entitlement to a statutory
redundancy payment under the Employment Rights Act 1996 (ERA) and makes a
claim for damages for breach of contract.
2. So far as the breach of contract claim is concerned, the Claimant contends
that the Respondent failed to pay him a redundancy payment to which he was
entitled under the terms of his contract of employment.
3. At the beginning of the hearing the parties agreed that the issues were
considerably narrower than had previously been discussed at the case management
hearing. The parties now agreed that:
a. the Claimant was dismissed by the Respondent
Case No. 2402683/2017
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b. the reason for his dismissal was redundancy as defined in the
Employment Rights Act 1996
c. the Claimant's employment terminated on 30 November 2016
d. the Respondent made an offer to the Claimant to renew his contract or reengage
him before his employment terminated
e. the Claimant did not accept the offer that had been made.
4. The only outstanding issues for me to determine, therefore, were:
a. whether the Claimant lost the right to a statutory redundancy payment by
operation of ERA s141; and
b. if not, the amount of the statutory redundancy payment due to the
Claimant under ERA.
5. It was agreed by the parties that the Claimant’s contractual claim on its merits
stood or fell with the claim for a statutory redundancy payment. In other words if the
claim for a statutory redundancy payment succeeded so would the contractual
redundancy pay claim, and vice versa - if the statutory claim failed so would the
contractual claim.
6. It was agreed that, if the right to a contractual redundancy payment had
arisen, the amount of the payment far exceeded to statutory maximum amount I can
award of £25,000. As identified in the case management order, there was an issue,
however, as to whether there should be further offsetting of the amount of the
statutory redundancy payment so as to reduce the award further.
The Facts
7. I heard evidence from the Claimant and, for the Respondent, from Mr
McDonald, an operations manager with the company. I was also referred to a
number of documents.
8. The Claimant worked for the Respondent company until his dismissal took
effect on 30 November 2016.
9. At the time of his dismissal he was employed in the role of
Mentor/Employment Training Consultant (Offender Services). He had been doing
that job since April 2009. He performed that role from two different geographical
bases. Four days a week he worked at Vektor House and one day a week from a
base in Wigan.
10. I was referred to the Claimant’s job description (pages 52-53 of the bundle). It
referred to the job title I have already given. It mentioned his reporting line. He
reported to a Service Manager (Offender Services). He worked in the department
known as Offender Services. His job level was 9. The job purpose was described as
follows: ‘Through the delivery of a range of guidance and training services for
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unemployed offenders; contribute to individuals’ progression into employment
training, education and a life free from crime.’ That document went on to identify key
responsibilities in bullet points. The first bullet said that a key responsibility was: ‘To
case manage offenders on intensive community orders and provide advocacy,
mentoring, advice and guidance and training interventions that meet the needs of
individual offenders and support the achievement of skills and progression towards
sustained employment.’ Over the page there was another section headed
‘Dimensions’ referring to the customers that the Claimant was to work with. It
referred to them as ‘including young offenders and 18-24 year old male offenders
referred by various agencies and bodies’. There were then details of knowledge
skills and experience needed to do the job. Again various bullet points were listed.
There is no suggestion that the Claimant did not have the skills and experience to do
the job that he was doing, I find as a fact that he did.
11. The Claimant had not always done this job when he worked for the
Respondent. He had had at least one previous job as evidenced by document 41
which purports to be a contract of employment dated March 1998 and said the
Claimant’s job at the time was a Development and Account Manager. I was not
referred to any contractual documents dating back to when the Claimant moved to
the role he was in when his employment ended, but it is clear to me, and I find, that
the contract that I was referred to did not accurately reflect all of the terms of the
Claimant's employment at the date of his dismissal in light of that change of role.
12. Returning to the role that the Claimant was in at the time of his employment
ending, he had been in that role since 2009. Mr Donald said the Claimant had been
one of the ‘original mentors’ – he used the word ‘mentors’ in his evidence to describe
the Claimant. I find the document at pages 52-53 accurately represents what the
Claimant did in this role.
13. In evidence there was a disagreement as to the function of the Claimant's
role. The Respondent’s case was that the Claimant's job was really all about getting
offenders into employment training and education. The Claimant’s case, on the other
hand, was that his job was not just about getting offenders into employment, training
and education but was also about preventing re-offending. In support of the
Claimant’s case I was referred to page 52, which specifically refers to a ‘life free from
crime.’ For the Respondent I was referred to the evidence of KPIs for the role
showing that what was being measured was the number of customers that were got
into employment training and education. I accept that was measured and the
Claimant knew that was being measured, but notwithstanding that I find that the
Claimant perceived his role as being somewhat broader than simply being involved
in achieving that aim. I find he genuinely believed that his job involved more than
simply getting offenders into employment training and education.
14. The contract document dating back from March 1998 stated: ‘The employee’s
normal place of employment is initially at Manchester TEC, Great Bridgewater Street
Manchester, or such other place of business as the TEC may from time to time
direct.’
15. At the time of dismissal the Claimant was no longer working at Lee House. He
was working four days in an office at Vektor House in Manchester and one day a
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week in Wigan. Mr McDonald’s evidence for the Respondent was that the Claimant
had worked at Vektor house for 7-8 years. I asked Mr McDonald about the reference
in the contract to Great Bridgewater Street and Mr McDonald that the Claimant’s first
job had been based there but that he had since moved to other roles and he moved
to Vektor House with a change of role. There was no evidence before me that the
Claimant had been moved to that role by his employer unilaterally and I infer that the
move to Vektor House was by agreement, as was the move into a different role, and
the two happened at the same time. As for the work based in Wigan, that started
later; Mr McDonald could not say exactly when but suggested it might have been a
couple of years ago. It was clearly a settled state of affairs that the Claimant would
work one day a week at Wigan.
16. The Respondent’s staff handbook contained provisions regarding
redundancy, including the right to severance pay. Those provisions were
incorporated into the Claimant’s contract of employment.
17. On 18 August a letter was sent or given to the Claimant. It was a letter from
the Respondent giving notice of termination by reason of redundancy. That notice
was due to expire on 30 November 2016. In that letter the employer said that if the
Claimant was not redeployed he would be entitled to a redundancy payment of
£59,014.44. The Claimant was subsequently told that the correct figure was
£59,605.20.
18. On 15 November, 15 days before that notice was due to expire, the Claimant
received an email attaching a letter dated 4 November that he had not previously
seen. That letter purported to withdraw the Claimant's notice of termination (page
101 of the bundle). The letter said:
‘I am delighted to confirm that a vacancy of Employment & Training
Consultant (substance misuse) within Substance Misuse Team was become
available. This role is the same salary and terms and conditions as your home
role. Despite the difference in role title the duties are substantially similar (i.e.
95%) to that of your home role. This means you are now matched and we will
therefore rescind your notice of redundancy.’
19. The letter went on to say, ‘This letter confirms you in post as Employment &
Training Consultant within The Work Company from 1 December 2016’. The letter
also said there would be no trial period and said this was due to the significant
degree of similarity between the roles.
20. Attached to that letter was a copy of a role profile which appears at pages 54-
55 of the bundle. That role profile was in the same format as the one for the
Claimant’s existing role at pages 52-53. The job was described as ‘Employment &
Training Consultant (substance misuse)’. There was no mention in the job title of
‘mentoring’. The document said that all incumbent in the role reported to a Service
Manager (substance misuse) in the Substance Misuse Department. The job level
was 9 as per the Claimant's existing role. The job description was set out as follows:
‘through the delivery of a range of guidance and training services for customers in
treatment contribute to individuals’ progression into employment training and
education’.
Case No. 2402683/2017
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21. Key responsibilities were set out as per the previous role profile document in
bullet point form, and those responsibilities were very similar to those set out in the
Claimant's existing job description. There were also, however, some differences. In
particular I refer to the first bullet point which refers to ‘delivering advice, guidance
and training interventions that meet the needs of customers’. Although that also
appears in the profile for the Claimant’s existing role on page 52, there is no mention
on page 54 (the proposed alternative role) of advocacy or mentoring as there was on
page 52 of the Claimant’s existing role profile.
22. It was clear from the job purpose and over the page in the section on
‘Dimensions’ the Claimant would, in this new role, have be working with a different
client base, or cohort as Mr Lewinski described them. In respect of the proposed
alternative role these were described as people in treatment services for alcohol or
drug dependency, substance misuse treatment providers and a range of other
bodies. This is different from the client base that the Claimant worked with under his
existing role. The Claimant agreed, however, and I find, that there was a
considerable overlap between the two client bases, or cohorts, with some individuals
coming within both groups. A significant number of those dealt with as young
offenders, or aged 18-20, had substance misuse issues and the Claimant would
have dealt with them and addressed those issues with them as part of his existing
role.
23. This brings me onto the knowledge, skills and experience set out in the
proposed alternative role profile. These were very similar indeed to those that were
set out in the Claimant's existing role profile. One way in which they differed was that
the new role referred, under ‘experience’, to working with customers in the treatment
for substance misuse and/or disaffected and marginalised from mainstream services,
etc. This did not appear in the job description for the Claimant’s current role,
understandably, because it was a different client base, but as I have said I accept
there was an overlap between the cohorts and I find as a fact that in his existing role
the Claimant had gained experience of working with customers in the treatment for
substance misuse and who were disaffected and marginalised from mainstream
services.
24. On 16 November, after receipt of those documents, the Claimant emailed Mr
David Vaughan saying he wanted to discuss whether the ‘implied match is suitable’.
There then followed a meeting on 17 November between the Claimant, Mr McDonald
and another manager, Mr Vaughan. Mr Vaughan explained some more about the
proposed role.
25. There was a dispute in the evidence as to what was said in that meeting
about where the work involved in that role might be performed. The Claimant’s
evidence in chief was that Mr Vaughan had said the role might involve operating
from various locations in the North West. Mr McDonald was adamant that that was
not said and that it simply was not the case that the role might involve operating from
various locations in the North West. The Claimant did, as I understand it except on
cross examination he might have misunderstood. I accept Mr McDonald’s evidence
that neither he nor Mr Vaughan said that the job would be carried out across the
North West. Mr McDonald’s evidence was that they told the Claimant that the new
role would be based at Phoenix Mill, and I accept that is what the Claimant was told.
Case No. 2402683/2017
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However, I also find that the Claimant was under a genuine misapprehension as to
where he would be working if he accepted this new role. The Claimant referred in
documents that he prepared, in the context of what was described at one point as an
appeal, a long note setting out what he believed appeared to him to be the
differences between the two roles, and he referred there to the new role involving
work around the North West. I find that that reflected a genuine understanding, albeit
a misunderstanding, on the part of the Claimant, as to what that job would involve.
26. There followed an email from the Claimant of 21 November which records that
the Claimant questioned in that meeting of 17 November whether the role that was
being proposed for him was really a match for the role he was currently doing; in
other words whether it was really substantially the same as was being suggested.
That email also records that the Claimant had said in that meeting that he felt he
should be offered a trial period for that job. I find that the Claimant did make these
points in the meeting.
27. Mr McDonald responded to that email of 22 November saying the new role
was essentially the same as the old role and that therefore there would be no trial
period. The Claimant replied by email of 22 November referring again to having
reservations about the new role, repeating his suggestion that he should be offered a
trial period in the new role. He also said he continued to regard himself as within his
redundancy period, the notice period ending on 30 November. Mr McDonald replied
on 23 November by email, repeating his position that the roles were essentially the
same. He said that if the Claimant did not agree he would need to appeal and he
stated that if the Claimant left it would be treated as a resignation and not
redundancy.
28. On 25 November the Claimant followed that up with an email to a Mr Gerry
Stokes. He raised again his expectation that he would have a trial period. He
referred again to the reservations he had about whether the roles were as similar as
was being claimed, and repeated again that he considered he was being dismissed
because of redundancy. Mr Stokes replied the same day, suggesting that it would be
best to hear the Claimant's concerns about the role in a face to face meeting and
asking the Claimant to outline before the meeting why he did not think the jobs were
a match. That was followed by an emailed letter inviting the Claimant to what was
described as an appeal meeting. There was then some correspondence about
whether this really was an appeal meeting, what the purpose of the meeting was and
an acknowledgement from the Respondent that they understood the Claimant was
not appealing against the redundancy, it was relating to the redeployment issues.
29. There was an appeal meeting which took place on 1 December. On that day
the Claimant had emailed Mr Stokes ahead of the meeting with documents that set
out in more detail his view of why he thought the jobs were different. He referred
again in his email to his objection to not being offered a trial period. The notes he
attached set out what he saw as differences between the old role and the new
proposed role. Those differences were set out under headings which included
context, client base and outcomes. It was then followed by a table purporting to
compare the two jobs side by side. Amongst the differences that were suggested to
exist, the Claimant:
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a. made the point in the document that in his existing role he was employed
primarily as a mentor and that the employment training and education
element was secondary; whereas in the new role the employment and
training consultancy was the sole purpose
b. highlighted again the different client base
c. referred to a difference in locations, suggesting that the new role could be
in various locations around the North West as opposed to on one site
d. referred to a wider range of targets and outcomes being applied to the
existing role; and
e. referred to a different IT system being in operation and a different
knowledge base, as he described it.
30. Towards the start of that meeting the Claimant said again that he was not
appealing the theory of redeployment, as he put it. He said: ‘All I’m asking is that I
am afforded a minimum one month trial’. The HR Business Partner said the
redundancy had been ‘rescinded’. That was repeated again. The Claimant repeated
his view that there should be a trial period. He said he felt that failing to offer him a
trial period was outside legislation and outside company policy. He also said that if a
trial period could not be offered ‘there is nothing further to discuss’. The
Respondent’s position was repeated again, that as it was a match there was no trial
period. There was then a discussion based on the documents the Claimant had
prepared setting out what he felt were the differences between the jobs. The issue
was raised as to the primary role and whether that was as a mentor in the current
employment. The Claimant repeated that this was his primary role. He also said that
the purpose of that role was to prevent reoffending. Mr Stokes clearly did not agree
with that and suggested that everything the company did was employment led. The
Claimant highlighted again the different client base and explained that his existing
work was with a group who typically were young male offenders who were immature,
volatile, violent, aggressive and at risk of going into custody again.
31. The meeting ended without any movement from the company on the trial
period. Looking at the evidence before me in the round, I find that the Claimant did
genuinely believe that there were differences in substance between the role that he
had been doing and the role that was being offered to him. The Claimant was not
willing to take up the alternative role without a trial period and so his employment
came to an end.
Law
32. ERA s141 provides as follows:
Renewal of contract or re-engagement
(1) This section applies where an offer (whether in writing or not) is made to
an employee before the end of his employment—
(a) to renew his contract of employment, or
Case No. 2402683/2017
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(b) to re-engage him under a new contract of employment,
with renewal or re-engagement to take effect either immediately on, or after
an interval of not more than four weeks after, the end of his employment.
(2) Where subsection (3) is satisfied, the employee is not entitled to a
redundancy payment if he unreasonably refuses the offer.
(3) This subsection is satisfied where—
(a) the provisions of the contract as renewed, or of the new contract, as
to—
(i) the capacity and place in which the employee would be employed, and
(ii) the other terms and conditions of his employment,
would not differ from the corresponding provisions of the previous contract, or
(b) those provisions of the contract as renewed, or of the new contract,
would differ from the corresponding provisions of the previous contract but the
offer constitutes an offer of suitable employment in relation to the employee.
(4) The employee is not entitled to a redundancy payment if—
(a) his contract of employment is renewed, or he is re-engaged under a
new contract of employment, in pursuance of the offer,
(b) the provisions of the contract as renewed or new contract as to the
capacity or place in which he is employed or the other terms and conditions of
his employment differ (wholly or in part) from the corresponding provisions of
the previous contract,
(c) the employment is suitable in relation to him, and
(d) during the trial period he unreasonably terminates the contract, or
unreasonably gives notice to terminate it and it is in consequence terminated.
33. In comparing the provisions of an existing contract with those of the new
proposed role, terms cannot be regarded as the same unless they are identical,
unless ‘differences are so trivial that one can fairly dismiss them under the doctrine
of de minimis’ : Rose v Henry Trickett & Son Ltd (No 2) (1971) 6 ITR 211, Div Ct.
34. On the question of whether an employee acts reasonably in turning down an
offer of suitable employment, the question is whether the employee had sound and
justifiable reasons for turning down the offer: Bird v Stoke-on-Trent PCT
UKEAT/0074/11 (21 July 2011, unreported). As was said by the EAT in Everest's
Executors v Cox [1980] ICR 415, ‘The employee's behaviour and conduct must be
judged, looking at it from her point of view, on the basis of the facts as they
appeared, or ought reasonably to have appeared, to [him] at the time the decision
had to be made’.
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35. Linked with section 141 is section 138, which provides that an employee
whose contract of employment is renewed or who is reengaged pursuant to an offer
made before the end of his existing employment is still entitled to a statutory
redundancy payment if he or she terminates that employment within the ‘trial period’
and certain other conditions are met. Those conditions would be satisfied if it was
reasonable for the employee to terminate their new employment and the terms of
that employment differed from the original role as to location or capacity.
Conclusions
36. ERA Section 141 provides that, where subsection (3) is satisfied, the
employee is not entitled to a redundancy payment if he unreasonably refuses the
offer.
37. I must, therefore, consider first of all whether the provisions of the contract as
renewed, or the new contract, would differ from the corresponding provisions of the
Claimant's previous contract as to the capacity in which the employee would be
employed or the place in which the employee would be employed, or as to any other
terms and conditions of employment.
38. If the answer to that question is that there was no difference then I would go
straight on to consider whether the Claimant unreasonably refused the offer. If, on
the other hand, there was a difference, the next question is whether it was an offer of
suitable employment in relation to the employee. If the answer to that is no, then the
claim succeeds. If the answer is yes then again I need to go on to consider whether
the Claimant unreasonably refused the offer.
39. To reach conclusions on the first of these issues I need to consider what is
meant by ‘capacity’. Mr Lewinski submitted that the concept of ‘capacity’ it is not
necessarily just confined to a job description. I accept that submission. ‘Capacity’
can include matters such as the role, function, seniority and responsibilities; it can
include matters such as a job description and which department somebody works in.
Having said that, what I am concerned with here is not what a job involves in practice
but what the contract provides as to those matters.
40. On the facts of this case, the 1998 written contract clearly did not reflect the
provisions of the contract as to capacity that existed when the Claimant was
dismissed.
41. At the time of his dismissal, I find that the terms of the Claimant’s employment
as to capacity must have included his job title as Mentor/Employment & Training
Consultant (offender services) in the Offender Services Department. As far as the
new role was concerned I am not referred to any contractual documents but what I
do have is the letter that was sent to the Claimant purporting to rescind his notice of
termination and which contained the first indication of the new role, and the job title
there is given as Employment & Training Consultant (substance misuse) within the
Substance Misuse Team. Those provisions do differ. I have considered whether that
is a difference in substance, or is de minimis. I find that there do appear to be real
differences of substance. I am assisted in that conclusion by looking at the job role
documents and in particular the first bullet point under ‘key responsibilities’ that my
attention was drawn to in respect of both roles. I have already highlighted that the
Case No. 2402683/2017
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existing role the Claimant was in specifically referred to advocacy, mentoring, advice
and guidance and training interventions etc. The new role is worded similarly but
excluded the words ‘advocacy and mentoring’.
42. Mr McDonald suggested in evidence that the word ‘mentoring’ was simply
included in the Claimant’s job description to satisfy a requirement of those providing
funding. The implication of his evidence was that it was a word that added nothing of
substance. I do not accept that implication reflects reality. It does appear from the
documents that the word ‘mentor’ was not superfluous - it was a term that was meant
to mean something in addition to giving advice, guidance and training interventions.
Indeed Mr McDonald himself described the Claimant as a ‘mentor’. Certainly I do not
feel able to find that there was no difference in the terms as to capacity in the
existing contract as opposed to the contract that was being offered.
43. I turn now to the contractual provisions as to the place where the Claimant
was employed as compared to the contractual provisions as to place of employment
fro the proposed alternative role offered. As far as the new role is concerned the
letter telling the Claimant about the new role contained no mention of any change to
the place of work; in fact it said terms and conditions would remain the same.
However, the Claimant was told by Mr McDonald in the meeting of 17 November that
he would be based at different premises to those he was presently working at. I infer
from that that it was a contractual requirement that the Claimant would work at these
new premises.
44. As far as the old role is concerned, it was suggested by Mr Lewinski that the
only contract term regarding place of work in relation to that old work was the one set
out at page 41 which reads: ‘The employee’s normal place of employment is initially
Manchester TEC, Great Bridgewater Street, or such other place of business as the
company may direct.’
45. I reject the contention that that was the only provision of the Claimant's
contract as at the date his employment ended as to place of work. That clause
referred to the place of work ‘initially’ being at Great Bridgewater Street. It also
referred to the possibility of the Claimant working elsewhere because he was
‘directed’ to do so. Mr Lewinski suggested the Claimant had been ‘directed’ to work
elsewhere but I have found that the change of the Claimant’s place of work came
about with a change of role which I infer the Claimant agreed to, and I infer that there
was an agreed change of place of work and a variation to the contract. As at the
time of termination the provisions in the Claimant's contract as to work included that
he work at Vektor House.
46. The terms of the new contract offered to the Claimant did not provide for the
Claimant to work at Vektor House. Nor, for that matter, did they provide for
employee’s normal place of employment to be ‘initially at Manchester TEC, Great
Bridgewater Street.’ The terms of the role offered to the Claimant would have
required him to work at a different office in Manchester altogether. This was not a de
minimis difference.
47. Other than the difference in contract terms as to capacity and location, I find
there were no differences between the terms and conditions of employment that the
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Claimant was employed under in his existing role and those that were being offered
to the Claimant in the alternative role.
48. Because I have found the terms and conditions were not the same in relation
to capacity and place I need to consider now whether the offer constituted an offer of
suitable alternative employment in relation to the Claimant.
49. As far as location was concerned the alternative role would have involved the
Claimant working not far from where he had previously been working at least four
days a week. I have found that the Claimant was wrong to think that it was going to
involve potentially working all around the North West. The job would not involve
more travel and his hours would be the same. Furthermore, he would, under the new
contract, have been doing very similar work to the work which he had previously
done. The client base would have been different but I have found there would be a
substantial overlap between the two and the Claimant could use the skills gained in
the job he had been working in for several years in the alternative job, because he
had been working with people with substance misuse problems. On his own
evidence that Claimant said he felt he could probably have done the job and it would
not have taken him long to pick it up even if he may not have been able to hit the
ground running on day one. The Claimant referred to differences in the IT system; I
find those would have been minor, however, and did not affect the suitability of the
role. There was going to be no less pay, and no greater expenditure for the Claimant
to do the job. There was no suggestion that there would be a lowering of status, at
least from other people’s perspectives. In all the circumstances I find there job
offered to the Claimant was an offer of suitable employment in relation to him.
50. The next question I must consider then is whether the Claimant unreasonably
refused the offer.
51. As I have said, I have found the Claimant genuinely believed there were
differences between the role he was doing and the role he was being asked to do.
He pressed the Respondent a number of times for a trial period and whilst the
Respondent has suggested that the Claimant really was only interested in a
redundancy payment I do not accept that was the case. I do not accept that the
request for a trial period was some sort of ruse dreamt up subsequently by the
Claimant to attempt to justify his failure to accept the job. It clearly was not. It was a
point that he made throughout the process leading up to the termination of his
employment, and gave reasons as to why he should have a trial period, producing a
lengthy document highlighting what he thought were the differences between the two
jobs.
52. I have considered whether the Claimant’s perception that there were
differences between the jobs was reasonable. In this regard I bear in mind that whilst
the Claimant was extremely familiar with the job he had been doing he would not
have had the same level of knowledge as Mr McDonald would about the new role. I
accept Mr McDonald was in a much better position than the Claimant to judge the
similarities between the two roles. His evidence was that there is very little difference
between the two roles. I accept that in practice that may well be the case but it is
necessary to consider the question about the reasonableness of the refusal from the
Case No. 2402683/2017
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Claimant's perspective and consider what was his understanding of the differences
between the roles and were those beliefs reasonable.
53. I am left with the clear impression that the Claimant believed there were or at
least might be real differences in what the roles entailed based on the job description
he had been given. I note that those job descriptions contained a lot of similarities,
but there were some differences, especially in relation to the omission of any
reference to mentoring and advocacy. The Claimant also, I accept, believed that his
role was not just about getting clients into employment training and education but
steering young men away from offending in a wider sense; I accept that he genuinely
believed that to be a part of his role that was reflected to some extent in the job
description. As far as the alternative role was concerned, the Claimant was at a
disadvantage compared to Mr McDonald because he did not have the knowledge
that Mr McDonald did about the new role and what it would entail.
54. If the Claimant had taken the job he was offered he would have had an
opportunity to discover for himself whether the alternative role suited him without
losing his right to a redundancy payment. Provided he resigned within the trial period
provided for by ERA s138 and provided his decision to leave was reasonable, he
would have retained his right to a redundancy payment. The purpose of that trial
period is to cover precisely the kind of situation in which the Claimant found himself,
where employees are offered an alternative role that they do not have first-hand
experience of themselves – it provides the employee with an opportunity to find out
for themselves whether it suits them.
55. The Respondent’s approach effectively deprived the Claimant of the benefit of
a trial period to assess the suitability of the job. Instead of offering the job with a trial
period, managers dug their heels in and purported to withdraw the notice of
termination, something it could not do under the terms of the Claimant’s contract. It is
true that, in practice the Claimant could have taken the job and if he had left within
the trial period and that decision was reasonable he would not have lost his
redundancy payment, because of course, as a matter of law, the employer is unable
to deprive an employee of statutory rights. Nevertheless that is what the employer
purported to do notwithstanding the Claimant’s repeated requests for a trial period.
56. Mr Lewinski speculated that even if the Claimant had been offered a trial
period it may not have made any difference. He suggested it was ‘moot’ whether the
Claimant would have accepted it. I reject that submission on the facts – the Claimant
repeatedly pressed for a trial period and I infer that, if offered one, he would have
accepted the role. That does not mean he would not have terminated his
employment during the trial period – he may well have done so; we simply cannot
say. What we do know, however, is that if the Claimant had had an opportunity to
discover for himself that the jobs were, as the Respondent said, virtually identical, it
would then have been very difficult for him to subsequently claim that the resignation
was reasonable and that he would be entitled to a redundancy payment. But the fact
remains that the Claimant did not get the chance to find out for himself whether that
was the case.
57. It is suggested that the real reason the Claimant rejected the role is that he
wanted a redundancy payment. There was clearly a large amount of money at stake
Case No. 2402683/2017
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here, and I accept that that may have been in the Claimant's mind. The Claimant did
take up a defensive position, repeating that he still considered he was being made
redundant in a number of emails. However, I find that it was perfectly understandable
in the circumstances because the Respondent was purporting to do something it
could not do as a matter of law, which was to rescind the dismissal notice and
prevent the Claimant accessing a redundancy payment. In the circumstances I do
not accept the submission that that the chance of obtaining a redundancy payment
was in reality the reason why the Claimant did not accept the job.
58. The Claimant declined the new role because he genuinely and reasonably
believed that there were real differences between his existing role and the new role
he was being offered and he was not afforded the opportunity of a trial period to find
out for himself whether the role was suitable. In all the circumstances I find that it
was reasonable for the Claimant to refuse the offer that was made to him.
59. That being the case I conclude that the Claimant is entitled to a statutory
redundancy payment under section 135 of the Employment Rights Act 1996.
60. It also follows, based on the submissions I have heard and the concessions
that have been made, that I must find that the Respondent breached the Claimant's
contract of employment in failing to pay him a contractual redundancy payment and
the claim of breach of contract succeeds.
Remedy
61. As far as the remedy is concerned I cannot see any basis on which to reduce
the entitlement to a statutory redundancy payment. It has not been paid.
62. Mr Lewinski calculated the amount of the Claimant’s statutory entitlement as
being £12,933.00 based on the Claimant’s age at the effective date of termination
(65), 18 years’ continuous service, and a week’s pay of £479 (taking into account the
statutory cap). Mr Mensah suggested the correct figure was £14370 but could not
explain how that higher figure had been reached and nor could he identify any error
in the Respondent’s calculation. Accordingly I find that the Claimant is entitled to a
statutory redundancy payment of £12,933.00 and the Respondent is required to pay
that amount under section 135 of the Employment Rights Act 1996.
63. As far as breach of contract is concerned, the Claimant’s case was that under
the terms of his contract he was entitled to a contractual redundancy payment of
either £59,605.20 or £59,014.44, depending on which of two figures he had been
given by the Respondent is correct (and there was no suggestion by the Respondent
that neither of the figures was correct).
64. It is not disputed that, pursuant to the Employment Tribunals Extension of
Jurisdiction (England and Wales) Order 1994, the amount I can award by way of
damages for breach of contract is limited to £25,000 even if the Claimant’s losses
exceed that figure.
65. The Respondent submits that the amount of the statutory redundancy
payment should be offset against the capped amount of £25,000 to bring the breach
of contract award down to just £12,067. The suggestion appears to be that the
Case No. 2402683/2017
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Claimant was not entitled to recover £25000 for breach of contract as well as a
statutory redundancy payment because the contract provided for the statutory
payment to be offset against the contractual payment.
66. I reject the Respondent’s submission on this issue.
67. The purpose of damages for breach of contract is to put the Claimant in the
position he would have been in if the contract had been properly performed. Properly
construed, the terms of the Claimant’s contract do not entitle him to the full amount
of £59,605.20 or £59,014.44 in addition to statutory redundancy pay. The contract
provides that, whatever the statutory redundancy entitlement is, it is offset against
the sum that would be calculated applying the provisions of the contract. I must take
that into account in assessing the Claimant's loss. The award of a statutory
redundancy payment reduces the Claimant's loss for these purposes by £12,933.00,
taking that loss down to just over £46,000.
68. Paragraph 10 of the Employment Tribunals Extension of Jurisdiction (England
and Wales) Order 1994 provides as follows: ‘An [employment tribunal] shall not in
proceedings in respect of a contract claim, or in respect of a number of contract
claims relating to the same contract, order the payment of an amount exceeding
£25,000.’
69. It is clear that this provision imposes a cap on the amount that can be
awarded by a Tribunal. That is a cap that is imposed after the loss is assessed. It
does not, as appeared to be suggested on the part of the Respondent, provide that
in calculating the Claimant’s loss, £25,000 is the starting point and the amount
awarded to the Claimant must be further reduced. There is nothing in the provision
that supports the submission made on behalf of the Respondent.
70. Had the contract been properly performed, the Claimant would have received
just over £46,000 as well as his statutory £12,933.00 redundancy payment.
Therefore the Respondent is ordered to pay to the Claimant the sum of £25,000.00
as damages for breach of contract. This is in addition to the amount it is required to
pay under section 135.
__________________________
Employment Judge Aspden
Date______23 February 2018______
REASONS SENT TO THE PARTIES ON
12 March 2018
FOR THE TRIBUNAL OFFICE
Note
Case No. 2402683/2017
15
Reasons for the judgment having been given orally at the hearing, written reasons will not be provided unless a
request was made by either party at the hearing or a written request is presented by either party within 14 days of
the sending of this written record of the decision.
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