Mr K Keld v Kebbell Developments Ltd: 1806302/2020
Employment Tribunal
Published on 27 January 2022, 08:51
- Summary
- Employment Tribunal decision.
- categories
-
unfair-dismissal
- country
- england-and-wales
- decision date
- 2021-11-01
Change History
-
Remedy Judgment added
-
First published.
Full Decision Text
Raw text extracted from the official documents.
Case Number: 1806302/2020
1
EMPLOYMENT TRIBUNALS
Claimant: Mr K Keld
Respondent: Kebbell Developments Ltd
Heard at: Leeds ET (via CVP) On: 20 October 2021
2021
Before: Employment Judge M Rawlinson (sitting alone)
Representation
Claimant In person, not represented
Respondent Mr Clark (solicitor)
RESERVED JUDGMENT
1. The claimant was unfairly dismissed by the respondent.
2. There is, however, a 50% chance that he would have been fairly dismissed
after the completion of a reasonable consultation process which would have
ended 4 weeks’ after his termination of employment on 27 July 2020. Such
reduction in the compensatory award for unfair dismissal will be made under
the principles in Polkey v A E Dayton Services Limited 1988 ICR 142. In
circumstances where the claimant has received a statutory redundancy
payment there is no entitlement to a basic award.
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3. A remedy hearing with a time estimate of 3 hours will be fixed to take place in
due course in order to determine the claimant’s entitlement.
REASONS
Introduction
1. The respondent is concerned in residential development. The claimant
worked for the Respondent as a fork-plant operator on a construction site.
The claimant commenced on the respondent's payroll on 23 October 2017
until his dismissal on 24 July 2020.
2. The claimant claims that his dismissal was unfair within section 98 of the
Employment Rights Act 1996.
3. The respondent contests the claim. It says that the claimant was fairly
dismissed by reason of redundancy as part of a cost saving exercise.
4. The claimant represented himself, and gave sworn evidence. Mr Clark,
solicitor, appeared on behalf of the respondent company. The respondent
called live evidence from Mr Andrew Ramsay, Site Manager at the material
time, and also Mr Mike Mulligan, Regional Director. Both sides adopted the
contents of their witness statements as their evidence. Each side was also
subjected to cross-examination by the other.
5. As well as hearing live evidence, I also considered numerous documents
that had been produced by both parties. These were contained in an
indexed and paginated hearing bundle comprising of some 44 pages.
Issues for the Tribunal to Decide
6. At the start of hearing I went through and agreed with the parties the issues
for me to decide. This had already been canvassed at a previous case
management hearing. In simple terms, these were:
i. Was the Claimant dismissed?
ii. What was the reason for such dismissal?
iii. Was dismissal by reason of redundancy as asserted by the
respondent?
iv. Was dismissal for that reason a potentially fair reason?
v. Did the Respondent follow a fair procedure?
vi. What is the likelihood of the Claimant being dismissed in the event
of a fair procedure being followed?
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7. To the extent that they were originally suggested issues around compliance
with the ACAS Code of Practice, these have previously fallen away (see
correspondence from EJ Davies regarding that matter dated 8 June 2021).
The parties also agreed that the only sums now in issue in terms of the
claimant’s losses related to loss of income, loss of pension contributions and
loss of employment rights.
8. I agreed with the parties that I would deal with the issue of liability only, and
the issue of remedy and any compensation payable, if it arose, would be
dealt with at a later date. Although the Polkey issue concerned remedy and
will only arise if the claimant’s complaint of unfair dismissal succeeded, I
agreed with the parties that I would consider that at this stage and invited
them to deal with that issue in evidence and in submissions.
Facts
13. I make my findings of fact on the basis of the material before me taking into
account contemporaneous documents where they exist and the conduct of
those concerned at the time. I have resolved such conflicts of evidence as
arose on the balance of probabilities. I have taken into account my
assessment of the credibility of witnesses and the consistency of their
evidence with the surrounding facts.
14. The claimant was employed by the respondent for a period of around 2
years and 9 months years from October 2017 until his dismissal in July
2020. He was employed as a forklift truck driver. The respondent was and
is a company concerned in building, construction and, in this particular
instance, a residential development. Whilst its head office is located in
Buckinghamshire, the business operates development sites across various
regions of which, of relevance for present purposes, the Northern region is
one. The company as a whole has a turnover of around £15 million per
annum and does not have a dedicated Human Resources Department.
15. The claimant was employed at the material time as one of four people
engaged by the respondent company as employees at a residential housing
development project at Middle Deepdale, Scarborough. The claimant was
the only fork lift truck driver employed by the respondent at the development.
His line manager (another one of the four employees) was the Site Manager,
Andrew Ramsay. Aside from two other employees, in addition to the
claimant and Mr Ramsay, the respondent company was heavily reliant on
what were described as “outsourced people”, namely by way of
subcontractors.
16. On Friday, 24 July 2020 Mr Ramsay was contacted by the Head Office of
the respondent company and told there was going to be a restructure. He
was also told on that date and at that time that the claimant’s position of
Case Number: 1806302/2020
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forklift truck driver would be made redundant. He therefore arranged to meet
the claimant at the site office on the same day in order to inform him of the
redundancy situation. There had been no discussion with Mr Ramsay
regarding this issue prior to this date and, also as of that date, the issue had
never previously been raised with the claimant.
17. A meeting duly took place on that date between the claimant and Mr
Ramsay. The meeting was recorded and an agreed transcript appears
within the bundle (P 35 – 36).
18. During the meeting, indeed immediately at the start of the meeting as an
opening remark, the claimant was told “we are going to have to lay you off”.
He was also told that he would finish today (i.e. 24 July 2020) but still get
paid for 2 weeks and receive redundancy. The claimant asked how the
company was restructuring and was told in response “ By laying you off and
saving money, and not being an expense to this site”. This was followed by
(in response to the claimant’s question regarding who he should get in touch
with regarding the issue) the answer from Mr Ramsay “nobody – me”.
19. Following the claimant then stating that he wanted to contest the matter, the
claimant was told to contact Head Office. The claimant then asked if he
could “come and see you officially on Monday morning?” to which he was
told yes.
20. Towards the end of the conversation, and in response to the claimant asking
how the company was restructuring, the claimant was told by Mr Ramsay
that the respondent company were getting a driver/forklift package. The
conversation ended with the claimant stating “Yeah, all right I will see you
Monday, see you Monday we will have a chat Monday”.
21. Following this meeting the keys to the forklift truck were surrendered by the
claimant and he collected his belongings and left site. To the extent that
there was a suggestion of a further meeting on Monday, 27 July 2020 this
did not take place.
22. The respondent company then wrote to the claimant by way of a letter dated
Monday 27 July 2020 and signed by the Finance Director. That letter is
reproduced within the bundle (P 37).
23. The letter stated that further to the conversation on Friday (24 July 2020) “I
confirm that due to a restructuring of the way we operate on site that the
position of Fork Truck Driver at Scarborough is redundant and we have no
alternative position to offer you.” The letter also stated that “your
employment ended on 24 July 2020”.
24. The claimant wrote to the respondent on 18 August 2020 seeking
clarification of the procedure the respondent would customarily follow in the
event of a redundancy situation. The respondent company replied by letter
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dated 1 September 2020 which is reproduced within the bundle (appendix
1 to the witness statement of the claimant).
25. That letter outlined that in the event of what was described as a
“straightforward redundancy situation” the procedure would be a 3 stage
procedure comprising:
i. A face-to-face meeting/consultation between any employee
potentially at risk of redundancy and their manager. At this meeting,
the manager will outline the circumstances giving rise to the planned
changes, the manager may be able to answer questions the
employee may have, and the manager can listen to any ideas or
suggestions the employee may have.
ii. Having listened to and considered any ideas or suggestions raised in
the face-to-face meeting, the company will confirm in writing to the
employee the position regarding the redundancy, and, where
applicable, arrangements relating to termination of the employment.
iii. In the event that an employee feels the redundancy is unfair, they can
appeal against that decision. Appeals should be made in writing, and
explain why the employee considers the redundancy to be unfair.
26. Following the letter of 27 July 2020 sent by the respondent, the claimant’s
dismissal stood, and he duly presented this claim for unfair dismissal to the
Tribunal on 20 October 2020.
Relevant Law
Unfair dismissal
27. Section 94 of the Employment Rights Act 1996 confers on employees the
right not to be unfairly dismissed. Enforcement of the right is by way of
complaint to the Tribunal under section 111. The employee must show that
he was dismissed by the respondent under section 95, but in this case the
respondent admits that it dismissed the claimant (within section 95(1)(a) of
the 1996 Act).
28. Section 98 of the 1996 Act deals with the fairness of dismissals. There are
two stages within section 98. First, the employer must show that it had a
potentially fair reason for the dismissal within section 98(2). Second, if the
respondent shows that it had a potentially fair reason for the dismissal, the
Tribunal must consider, without there being any burden of proof on either
party, whether the respondent acted fairly or unfairly in dismissing for that
reason.
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29. Section 98(4) then deals with fairness generally and provides that the
determination of the question whether the dismissal was fair or unfair,
having regard to the reason shown by the employer, shall depend on
whether in the circumstances (including the size and administrative
resources of the employer’s undertaking) the employer acted reasonably or
unreasonably in treating it as a sufficient reason for dismissing the
employee; and shall be determined in accordance with equity and the
substantial merits of the case.
30. In determining whether the dismissal was fair, the Tribunal’s task is to consider
all of the relevant circumstances including any process followed by the
respondent.
31. In coming to these decisions, the Tribunal must not substitute its own view for
that of the respondent but to consider the respondent’s decision and whether
it acted reasonably by the standards of a reasonable employer.
32. If the Tribunal finds that a dismissal was unfair, it is open to it to reduce any
compensatory award to reflect that the employee may have still been
dismissed had the employer acted fairly (known as a Polkey reduction
following Polkey v AE Dayton Services Limited (1988 ICR 142). The
Tribunal needs to consider both whether the employer could have dismissed
fairly and whether it would have done so.
Redundancy
33. It is generally not open to an employee to claim that his dismissal is unfair
because the employer acted unreasonably in choosing to make workers
redundant, Moon v Homeworthy Furniture (Northern) Ltd [1976] IRLR
298, James W Cook & Co (Wivenhoe) Ltd v Tipper [1990] IRLR 6. Courts
can question the genuineness of the decision, and they should be satisfied
that it is made on the basis of reasonable information, reasonably acquired,
Orr v Vaughan [1981] IRLR 63.
34. Redundancy is defined in s139 ERA. It provides:
“(1) For the purposes of this Act an employee who is dismissed shall be taken
to be dismissed by reason of redundancy if the dismissal is wholly or mainly
attributable to –
(a) the fact that his employer has ceased or intends to cease—
(i) to carry on the business for the purposes of which the employee was
employed by him, or
(ii) to carry on that business in the place where the employee was so
employed, or
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(b) the fact that the requirements of that business –
(i) for employees to carry out work of a particular kind, or
(ii) for employees to carry out work of a particular kind in the place where the
employee was employed by the employer, have ceased or diminished or are
expected to cease or diminish.
…
(6) In subsection (1) “cease” and “diminish” mean cease and diminish
either permanently or temporarily and for whatever reason.”
35. According to Safeway Stores plc v Burrell [1997] IRLR 200, [1997] ICR
523, 567 IRLB 8 and Murray v Foyle Meats Ltd [2000] 1 AC 51, [1999] 3
All ER 769, [1999] IRLR 562 there is a three-stage process in determining
whether an employee has been dismissed for redundancy. The Employment
Tribunal should ask, was the employee dismissed? If so, had the
requirements for the employer's business for employees to carry out work of
a particular kind ceased or diminished or were expected to do so? If so, was
the dismissal of the employee caused wholly or mainly by that state of affairs?
36. In Safeway Stores Plc v Burrell [1997] ICR 523 EAT, Judge Peter Clark
said that the question for a Tribunal is not whether there has been a diminution
in the work requiring to be done; it is the different question of whether there
has been a diminution in the number of employees required to do the work.
Where “one employee was now doing the work formerly done by two, the
statutory test of redundancy had been satisfied”, even where the amount of
work to be done was unchanged, Carry All Motors Ltd v Pennington [1980]
ICR 806.
37. The manner in which a redundancy situation arises may be relevant to the
fairness of a dismissal, but not to whether a redundancy situation exists in the
first place. In Berkeley Catering Ltd v Jackson UKEAT/0074/20/LA(V), the
employer admitted arranging matters so that its Director took over the
claimant’s duties in addition to his own duties. Those facts established a
redundancy situation under section 139(1)(b). Bourne J said at para 20:
“… A redundancy situation under section 139(1)(b) either exists or it does not.
It is open to an employer to organise its affairs so that its requirement for
employees to carry out particular work diminishes. If that occurs, the motive
of the employer is irrelevant to the question of whether the redundancy
situation exists.”
38. If the employer satisfies the Employment Tribunal that the reason for
dismissal was a potentially fair reason, then the Employment Tribunal goes
on to consider whether the dismissal was in fact fair under s98(4)
Employment Rights Act 1996. In doing so, the Employment Tribunal applies
a neutral burden of proof.
Case Number: 1806302/2020
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39. The case of Williams v Compair Maxam Ltd [1982] IRLR 83, sets out the
standards which guide tribunals in determining the fairness of a redundancy
dismissal. The basic requirements of a fair redundancy dismissal are fair
selection of pool, fair selection criteria, fair application of criteria and seeking
alternative employment, and consultation, including consultation on these
matters. In Langston v Cranfield University [1998] IRLR 172, the EAT held
that so fundamental are the requirements of selection, consultation and
seeking alternative employment in a redundancy case, they will be treated as
being in issue in every redundancy unfair dismissal case.
40. Both Mr Keld, on behalf of the claimant, and Mr Clark on behalf of the
respondent, provided me with oral submissions with respect to the above
matters at the conclusion of the evidence, which I have considered and refer
to where necessary in reaching my conclusions. At the conclusion of the
evidence, Mr Clark also produced a written skeleton argument supplementing
his oral submissions, dealing explicitly with each of the questions and the
agreed list of issues the Tribunal had to consider, and also quoting various
authorities. I have also fully considered that document and the authorities
cited therein in reaching my conclusions.
Conclusions and further Findings of Fact
Was the claimant dismissed?
41. There is no dispute by either party that respondent dismissed the claimant. On
the evidence I have heard and seen, I find as a fact that the respondent did
dismiss the claimant.
42. I also find as a fact that this dismissal took place on Friday 24 July 2020. Such
a finding is entirely in keeping with both a common-sense interpretation of the
conversation that took place between the parties on that date (see P 35 – 36),
and in terms of what the claimant was told, his response, and indeed also Mr
Ramsay’s actions and the respondent’s subsequent response to that
conversation.
43. Importantly, such a finding is also in keeping as well with the respondent’s own
correspondence as sent to the claimant dated 27 July 2020, which indicated
explicitly within it that the claimant’s employment with them had ended on 24
of July 2020 (see P 37 of the bundle).
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What was the reason for the dismissal? Was dismissal by reason of redundancy
as asserted by the respondent?
44. In this case, both parties now agree that the reason for the claimant’s
dismissal related to redundancy. The only criticism that the claimant ultimately
pursued at the hearing, and indeed in his evidence and closing submissions,
was with respect to the procedure that was adopted when making him
redundant.
45. The onus was on the respondent (by reason of section 98(1) ERA 1996) to
show the reason for the claimant’s dismissal. The respondent consistently
claimed (in the meeting of 24 July 2020 between the parties, in subsequent
correspondence to the claimant on 27 July and in evidence before me) that
there was a genuine redundancy situation.
46. On the evidence that I have heard and read, I am satisfied and I find as fact
that the only motivation of the respondent in dismissing the claimant by way
of redundancy was a financial one. I find that the respondent genuinely
decided that there was the possibility of significant savings that could be made
to the company by making the claimant redundant. This was with respect to
cost of both a forklift truck itself at the site, and the allied role of forklift truck
driver. There was no suggestion by the claimant himself of any other oblique
or ulterior motive for his dismissal.
47. There was also no dispute raised to the evidence contained within the bundle
with respect to this matter (see page 38 and 39 of the bundle) or indeed any
dispute raised to the evidence given by Mr Mulligan. This was to the effect
that by engaging a self-employed contractor rather than the claimant as an
employee, this amounted to a total potential cost saving to the respondent
company of around 24% or around £16,000 a year. I conclude that the
claimant’s role could be undertaken much more cheaply by a third party
independent contractor, retained on a self-employed rather than on an
employed basis.
Was it a potentially fair reason?
48. There can be no dispute that redundancy is potentially a fair reason for
dismissal.
Did the respondent act reasonably in all the circumstances? In particular:
Did the respondent otherwise act in a procedurally fair manner?
49. Having carefully considered all of the evidence and the submissions in this
case, I have concluded that the respondent did not act in a procedurally fair
manner. I prefer the evidence of the claimant with respect to these issues.
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50. The question as to whether or not an employer consulted adequately with an
employee is always a question of fact and degree for the Tribunal to decide
in each individual case. It must take account of the particular circumstances
and evidence which is presented. A lack of consultation in any particular
respect will not automatically lead to a conclusion of unfair dismissal and I
must, and indeed I do, take account of the overall picture. I must not fall into
the error of substitution, and I remind myself that the redundancy process did
not need to be perfect or even good. It needed to be within the range of
reasonable conduct open to a reasonable employer. The respondent says
that all the steps taken by the respondent were within the range.
51. In this particular case and in these particular circumstances, I do not accept
the evidence or submissions made on behalf of the respondent company to
the effect that the respondent made reasonable efforts to both warn and to
consult with the claimant regarding his potential redundancy.
52. I have already found as a fact that the claimant was in fact dismissed on 24
July 2020. In that regard alone, any purported warning and/or consultation
process between the parties both began and ended on the same day, indeed
within the few minutes it took to conclude the meeting that in fact took place.
53. Whilst the respondent in their skeleton argument relies upon paragraph 35 of
the case of Mental Health Care (UK) v Biluan (UKEAT/0248/12/SM) (to the
effect that where there is no collective consultation, the scope for useful
consultation on avoiding the redundancy situation altogether may well be
less) one cannot ignore the remaining part of that paragraph in the judgment.
This makes abundantly clear that the focus for individual consultation will
normally be on the circumstances involving the individual’s particular case,
and in particular – though not necessarily only – the chances of alternative
employment.
54. In this case, I find as a fact there was no adequate or meaningful warning or
consultation of any kind with the claimant with respect to those specific
matters (i.e. the circumstances involving the claimant’s particular case and
the chances of securing alternative employment). I also find as a fact there
was no adequate or meaningful warning or consultation of any kind with the
claimant with respect to his redundancy generally. I reject the contention
urged on behalf of the respondent that the meeting held on 24 July 2020
amounted to anything like such a process.
55. I find that on any common-sense interpretation, an analysis of the transcript
of the meeting of 24 July 2020 reveals that the claimant was effectively told
at the very outset of that meeting that, rather than being at risk of redundancy,
he was in fact being made redundant (“Bad news Kev, I’m afraid we are going
to have to lay you off”). Nowhere within the conversation is there any mention
by Mr Ramsay, on behalf of the respondent, of a “risk” of redundancy, or
indeed of any type of continuing or future, formal or informal redundancy
consultation process of any sort. The claimant was not asked at any stage for
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any suggestions or ideas he had to avoid redundancy, nor was he given any
proper or meaningful opportunity to put forward the same.
56. I conclude that a settled decision to make the claimant redundant had already
been reached by the respondent company at that stage, and that rather than
the purpose of the meeting of 24 July 2020 being to warn or meaningfully
consult with the claimant, it was simply to inform him of that decision.
57. Such an interpretation is fortified by an analysis of the evidence of Mr Ramsay
himself. His evidence was (as per paragraph 3 of his witness statement) that
he was told by Head Office shortly before that meeting that the claimant’s role
“would be made redundant”. He went on to adopt in evidence (as per
paragraph 7 of his witness statement) that “after informing the claimant of the
restructure and his redundancy, I agreed to meet with him on the Monday,
after the weekend, to allow him some time to think about it.”
58. That interpretation is also fortified by an analysis of the evidence of Mr
Mulligan, who it seems was the ultimate decision maker in terms of the
claimant’s redundancy. Nowhere in his evidence is the issue of either a
warning or any form of formal consultation process with the claimant touched
upon. His evidence (given again as per his witness statement, paragraph 10)
was that he had decided that profitability would be better achieved by making
the claimant redundant and that the site manager was “told to inform the
claimant of the redundancy situation”.
59. To the extent that there was some reference during the conversation to a
potential meeting on Monday, 27 July 2020, I find that it is evident on the face
of the transcript (and indeed I find as a fact) that this was raised by the
claimant rather than by Mr Ramsay on behalf of the respondent company. In
those circumstances, the prospect of a future meeting as first raised by the
claimant himself, did not somehow transform the nature of the meeting of 24
July 2020 into a meaningful consultation with the claimant regarding his
redundancy.
60. It follows therefore that I do not accept the respondent’s contention that the
claimant had any meaningful opportunity to ask questions, make suggestions
and to discuss ways of avoiding his redundancy at the meeting with Mr
Ramsay on 24 July 2020. Such a conclusion is fortified by further analysis of
the transcript of the meeting.
61. By way of example, when the claimant asked how the company was to be
restructured, he was simply told initially that this was to be achieved by “laying
you off and saving money, and not being an expense to this site”. When he
then asked again about restructuring and who he was to get in touch with he
was initially told ”nobody – me”. The fact that the claimant was told he could
contact head office, that the company were getting a driver/forklift package
and that there may have been another meeting on Monday (a possibility that
only arose at the behest of the claimant) in my view did not in any way cure
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those deficiencies. In my view it was perfectly understandable that the
claimant did not attend any further meeting on the following Monday as it had
already been abundantly clear to him that his redundancy was a foregone
conclusion. The respondent company cannot rely upon its own default in
creating that situation in terms of the submission made that the claimant
thereafter “failed to attend” further meetings or failed to appeal the matter,
62. As well as the inherent unfairness of the procedure that was adopted, in light
of the above findings, I also conclude that the respondent failed to adhere to
its own policy regarding redundancy – as contained in, and outlined within, a
letter sent to the claimant dated 1 September 2020 (see Annex to claimant’s
witness statement).
63. Specifically, I make the following findings in this regard: whilst there was a
face-to-face meeting, for the reasons I have already articulated there was in
fact no “consultation”. Rather than being an employee at risk of redundancy
the claimant was an employee in respect of whom the decision to make him
redundant had in fact already been made. Mr Ramsay also did not fully and
properly outline circumstances that gave rise to the planned changes,
changes which also in light of the above findings, I find were settled rather
than planned in any event.
64. Given that I have already found that the claimant was given no opportunity to
meaningfully ask questions, or to put forward any ideas or suggestions, it also
follows that the respondent failed to adhere to its own policy in this regard
also. The further stage suggested within the policy, whereby the respondent
ought to listen to or consider any ideas or suggestions raised by the
employee, simply did not occur.
65. Further, there was no evidence presented before me by the respondent of
any analysis, examination or consideration that was undertaken by the
respondent company by way of alternatives, including alternative cost saving
measures as an alternative to making the claimant redundant. Contrary to the
submissions made on behalf of the respondent, this is not a case where there
is any evidence that the respondent actually turned their mind the issue of
whether any consultation process or warning would have been useless or
futile and positively decided to dispense with it – the evidence that I have
heard suggesting that they simply did not turn their mind to that issue at all.
The fact that the claimant did not suggest those options himself (especially
where he was given no opportunity to do so) in my judgment, does not negate
the respondent’s duty to genuinely apply its mind to such options. I find that it
did not do that.
66. To the extent there has been reference by the respondent to the exceptional
class of case as referred to at paragraph 29 of Grayson v Paycare
(UKEAT/0248/15/DA), I find that even if this meeting of 24 July 2020 could
ever be described as consultation (which I find it could not be) it effectively
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would have amounted to a consultation undertaken with a closed mind. As
was said at paragraph 30 of Grayson:
“The discussions thereafter were not consultation worth the name. The
decision was already made. That was unfair. It was a classic case of
unfairness through failure to consult.”
67. The claimant was also at no point afforded any right or route of appeal
whatsoever, this being in circumstances where he had, initially at least within
the initial meeting itself, outlined an intention to contest the matter. Again,
whilst it was asserted that this would have made no difference to the ultimate
outcome, and not determinative in and of itself, in my view this was also
procedurally unfair.
68. Whilst it was asserted repeatedly by the respondent that such steps as
outlined above would have made no difference, in my view this was
procedurally unfair. I find that an employer acting within a range of reasonable
response would not have acted in that manner.
Conclusion on Unfair Dismissal
69. I have considered the size of the respondent’s undertaking. It is a business as
a whole with a turnover of around £15 million per annum with no dedicated
HR Department. The evidence would suggest the regional offices are run
somewhat separately from each other. However, within the range of
reasonable responses, the respondent’s size and resources do not excuse the
unfairness in terms of the procedural failings in this case.
70. I find therefore, to the extent of the matters outlined above at paragraphs 49-
67, that the respondent’s decision to dismiss the claimant fell outside the
range of reasonable responses open to a reasonable employer and therefore
his dismissal was unfair. The claimant was unfairly dismissed by the
respondent within the meaning of section 98 of the Employment Rights Act
1996.
Is there a chance that the claimant would have been fairly dismissed anyway if
a fair procedure had been followed? If so, should the claimant’s compensation
be reduced? By how much?
71. As recorded above, I agreed with the parties at the start of the hearing that if
I concluded that the claimant had been unfairly dismissed, I should consider
whether any adjustment should be made to the compensation on the grounds
that if a fair process had been followed by the respondent in dealing with the
claimant’s case, the claimant might have been fairly dismissed, in accordance
with the principles in Polkey v AE Dayton Services Ltd [1987] UKHL 8,
Software 2000 Ltd v Andrews [2007] ICR 825; W Devis & Sons Ltd v
Atkins [1977] 3 All ER 40; and Crédit Agricole Corporate and Investment
Bank v Wardle [2011] IRLR 604. I turn to this issue now.
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72. In undertaking this exercise, I am not assessing what I would have done; I am
assessing what this employer (acting reasonably) would or might have done.
I must assess the actions of the employer before me, on the assumption that
the employer would this time have acted fairly though it did not do so
beforehand: Hill v Governing Body of Great Tey Primary School [2013]
IRLR 274 at paragraph 24.
73. Polkey reductions tend to arise in cases where there has been procedural
unfairness, but not necessarily so, and in this case, where the unfairness lies
in procedural failings that arose as a result of a failure to consult, it is
appropriate in assessing just and equitable compensation as to what might
have happened if they had not acted unfairly in that way.
74. The respondent asserted that a 100% reduction was justifiable in this case,
suggesting further that this was within an exceptional category of cases where
despite a procedurally unfair dismissal there could be a 100% Polkey
reduction. A Polkey reduction to that extent only makes sense if it could be
said that the consultation which, unfairly, did not take place, would have
generated a nil chance of this claimant avoiding dismissal.
75. In my view, there is a distinct lack of evidence on this issue. Part of the difficulty
is that that, as I have already found, the respondent did not turn their mind at
all to any alternatives in terms of cost reduction such as reduced wages, parttime
working or any other areas where similar cost savings could be made
(save for the fact that they simply concluded there was no alternative
employment available within the respondent company). They also did not
engage in any sort of meaningful consultation with the claimant. In those
circumstances it is very difficult to know what twists and turns any such fair
procedure may have taken along the way, including what suggestions or
alternatives may have been made by the claimant, and what conclusion the
respondent may reasonably have reached had it actually properly turned its
mind to the issue. The situation is analogous to that as described in paragraph
40 of Grayson:
“The Respondent did not adduce any analysis of what the reviews that were
not done, and the call for volunteers that was not made, would have achieve
or rather not achieved. The evidence was lacking that costs could not have
been saved by these alternative measures on which consultation did not take
place.”
76. However, particularly given the potential savings that the respondent company
could make by making the claimant redundant, despite the limited evidence
available, I find that even if the respondent had properly considered all
relevant matters following the meeting of 24 July 2020, thereafter engaged in
a fair procedure, the respondent company would still have dismissed the
claimant by way of redundancy.
Case Number: 1806302/2020
15
77. For the reasons I have outlined above I reject the respondent’s assertion that
there was no prospect of the claimant attending a further consultation meeting
after he did not attend the meeting on Monday 27 July 2020. I also prefer the
claimant’s evidence on this issue and find that he did not “withdraw” from any
consultation process as asserted by the respondent. A proper redundancy
procedure should have occurred after that date, with meaningful consultation
and a proper opportunity given for claimant to raise issues, ask questions and
suggest alternatives. In my view, allowing for that to occur and for any appeal
process, this would have taken a period of 4 weeks from 27 July 2020.
78. This is not a small business and I heard very little evidence about its Northern
operations beyond the contract the claimant was working at. Nor did I hear
detailed evidence about the new self-employed role that was to replace the
claimant’s role, other than in terms of the anticipated cost savings.
Nevertheless, I do conclude that the work of the claimant could be performed
more efficiently by a contractor – e.g. the claimant as an employee had
downtime for which he was paid a fixed salary whereas the contractor could
be called upon sporadically as the need arose. I am fortified in this view by the
unchallenged evidence in the bundle produced by the respondent to which I
have previously referred (pages 38 and 39 of the bundle).
79. In the round, I therefore consider that there is a 50% chance that the claimant
would still have been dismissed by way of redundancy if the respondent had
conducted a fair procedure and after the procedure outlined above had been
completed. As outlined above, had the respondent company at least given the
claimant a meaningful opportunity to engage with them, listened to any
suggestions that may have been made by the claimant, and thereafter
properly considered all alternative potential options, any such dismissal would
have been within the range of reasonable responses.
Employment Judge Rawlinson
Date: 1 November 2021
Judgment and Reasons sent to
parties on:
Date: 17 November 2021
Case Number: 1806302/2020
1
EMPLOYMENT TRIBUNALS
Claimant: Mr K Keld
Respondent: Kebbell Developments Ltd
Heard at: Leeds ET (via CVP) On: 10 December 2021
Before: Employment Judge M Rawlinson (sitting alone)
Representation
Claimant In person, not represented
Respondent Mr Clark (solicitor)
JUDGMENT ON REMEDY
Judgment having been sent to the parties on 17 November 2021 declaring that
the respondent unfairly dismissed the claimant, following a remedy hearing held
on 10 December 2021, the tribunal awards the following remedy:
1. No basic award being payable, the respondent is ordered to pay the
claimant a compensatory award for unfair dismissal of £631.57.
This sum was calculated with the agreement of the parties, and having
heard submissions from each party. It was calculated with reference to
the figures contained within the claimant’s original schedule of loss and
Case Number: 1806302/2020
2
the respondent’s counter schedule of loss. It also takes into account a
deduction of 50% after 4 weeks having been made, in accordance with
Polkey and as expressed in the original judgment. The Recoupment
Regulations do not apply.
Employment Judge Rawlinson
10 December 2021
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