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United Kingdom Employment Appeal Tribunal |
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You are here: BAILII >> Databases >> United Kingdom Employment Appeal Tribunal >> Morgan & Anor v Brith GOF CYF [2000] UKEAT 164_98_0412 (4 December 2000) URL: http://www.bailii.org/uk/cases/UKEAT/2000/164_98_0412.html Cite as: [2000] UKEAT 164_98_412, [2000] UKEAT 164_98_0412 |
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At the Tribunal | |
Before
THE HONOURABLE MR JUSTICE LINDSAY (PRESIDENT)
MR B FITZGERALD MBE
MR H SINGH
(2) MR J ROWLEY |
APPELLANTS |
RESPONDENT |
Transcript of Proceedings
JUDGMENT
Revised
For the Appellants | THE FIRST APPELLANT IN PERSON AND ON BEHALF OF THE SECOND APPELLANT |
For the Respondents | MISS ALISON WOODS (Representative) |
MR JUSTICE LINDSAY (PRESIDENT): We have before us, by way of a full hearing, the appeal of Mr R Morgan and Mr J Rowley in the matter Morgan & Rowley v Brith Gof Cyf, which is a drama company. Today Mr Morgan has represented both appellants, who were applicants below. Alison Woods is co-secretary and ex-director of the respondent drama company and she appears for them today.
"In January 1997 the Applicant was promised work with the Respondent Company for the rest of the year and was asked to confirm that he would be available to work for the Company full time for that period. The Applicant duly gave this confirmation."
So what is alleged there is a promise and a confirmation. Work was promised for the year 1997 from some date in January and confirmation was given that the artist would be available to work fulltime for that period. In other words, as it would seem, for the rest of the calendar year 1997. A breach of the contract was alleged. The IT1 continues:
"The Applicant worked on a production at Ely Hospital until 5th April 1997. When its run ended the Respondent dismissed the Applicant on the basis that there was no other available work."
A little later in the IT1:
"The Applicant is aware of 2 other projects, namely Hafod to be performed at the Eisteddford and "Once upon a Time in the West" which has gone on tour to Romania, that he was due to be involved with and which have now been given to other performers.
The Respondent has failed to provide any cogent reason for their decision to exclude the Applicant from the productions and to dismiss him.
The Applicant therefore claims unfair dismissal and or in the alternative breach of contract."
There is no claim of an alternative contract there that if or so long as Hafod is produced then the artists would be within it. Equally, no pleading there of an alternative contract that if and so long as 'Once upon a Time in the West' was produced within a period that the artists would be in it. One reverts to the beginning of the claim, namely that "the Applicant was promised work with the Respondent Company for the rest of the year and was asked to confirm that he would be available to work for the Company full time for that period". That is the nature of the contract as it appears in the IT1.
"(i) the applicant's claim for compensation for unfair dismissal is withdrawn and by consent dismissed.
(ii) the applicant's claim for breach of contract fails and is dismissed."
"… A preliminary point was to be taken in respect of the period for continuous employment but at the start of the application both applicants conceded that they had insufficient service. A short adjournment of half an hour was ordered to enable the applicants to consider their position after which time it was confirmed that they wished to withdraw that aspect of their claims and to proceed with their allegations of breach of contract."
"The Employment Tribunal erred in:
(1) failing to deal with the Appellants' case.
(a) The Appellants' case was the Respondent had engaged them on terms that they were to be available for a year, and that if any opportunities arose in that year for the performance of Hafod, the Appellants would be given that opportunity;
(b) The Employment Tribunal (in paragraph 7 of its decision) recorded that the Appellants' case was that they were to be engaged for a year and that they should be available for a year;
(c) The Employment Tribunal in paragraph 10 of its decision accordingly dismisses a case which had not been put to it, and fails to make findings on the case that was put to it."
Well, as to that, one needs to go back to the reserved decision and its full reasons. In paragraph 2 the Chairman, Mr Thomas, said this:
"Both applicants are artistic performers. The respondent is a drama company. Both had been engaged by the respondents under two contracts to perform in a drama project headed "Tuag At Hafod" from 6 January 1997 for a guaranteed period until 30th March 1997. They were to be paid in weekly instalments of £300. At the conclusion of the contract another was to begin for one week from the 31st March until 6th April. The first contract was dated from the 2nd of December and the second was dated from 4 March."
Now that seems to be an acceptance of the written contracts which had been asserted by the theatre company and which had been annexed to its IT3. The Chairman recognised that the artists had asserted a different kind of contract. He deals with that at paragraph 3:
"The applicants' case is that those written contract do not reflect accurately the true contractual situation. They allege that there had been a verbal contract to cover the whole of the period of 1997 and that this verbal contract was reduced in part to writing to cover the first 13 weeks of that period from the 6th of January to the 4th of April. It was reduced to writing straddling the financial year for the purposes of accounting."
Now that is a variation upon the contract asserted in the IT1 but not perhaps seriously inconsistent with it. The Chairman then continued:
"4. They were then told in June by Mr Cliff McMaster, the director [it should read as Mr McLucas] that there was no further work that the company could offer them. They now claim that they had lost income from performances which the company made of a production now known as Hafod at the Bala Eisteddfod and at tours which the company undertook in Italy and Romania with other productions.
5. The respondents allege that the only contractual obligations are those which have been reflected in the written contracts for the guarantee periods of 13 weeks reflected in the contract, which period has now expired.
6. Absolutely fundamental to the issue in this application is what was said and agreed at a meeting between Mr McMaster [Mr McLucas] and the performers including the applicants in November 1996."
There is a confusion about the name. By the time we get to paragraph 7 the Chairman corrects it; that paragraph begins:
"On the 4th of November the performers were gathered together by Mr McLucas and he spoke to them of his view of the company's strategy. …"
Something is sought to be made of this error in nomenclature but what one really has to judge is the reasoning in the case and not what could be little more than an error of transcription. The Chairman then records Mr McLucas' evidence; he says in paragraph 8:
"Mr McLucas for the respondent, on the other hand, agrees that whilst he was trying to create continuity of work for performers and desired to employ the performers for as long possible and as frequently as possible this was only his intended strategy and it was not possible to offer contracts other than the two made without a guarantee of funding or other income. Because the company is grant aided and has limited income from other sources, such a legal commitment would have been impossible."
The Chairman obviously preferred Mr McLucas' evidence; he says at paragraph 9:
"I find that the evidence of Mr McLucas is that which is accurate. The applicants are mistaken as to what the arrangement made in November were. …"
Reasons are given by the Chairman for that preference. He continues in paragraph 9:
"I base that upon the documentary evidence which has been produced by Mr McLucas who is able to point to the notes to which he spoke in that meeting of 4 November. They are to be found at 3.1 in the Bundle. They are perfectly clear and indeed use some of the language that the applicants recall. There is a reference there to total commitment which the applicants remember as being a reference to the year. However in the notes there is a reference to three months "no longer at this stage" and the note "if I feel it has worked by next financial year then I will make a case to the board for a new kind of contract some time during next year". …"
At paragraph 10 the Chairman says:
"There is nothing in those notes which I can find which amounts to an offer of a contract of work for these applicants or anyone during the whole period of 1997. …"
Then the Chairman turns to an alternative form of contract. He says this in his paragraph 12:
"The applicants alternatively would try to establish that there had been an agreement arising implicitly from the terms of the fixed term contracts that the work produced by them in that period should be performed by them and not other performers when later staged. …"
But that too is rejected. The Chairman says at the end of paragraph 12:
"… There is no material on which I can conclude that there had been an agreement that the kit of parts created in the first 13 weeks of 1997 was material which was performed at the Bala Eisteddfod or was required contractually to be performed by the applicants later in the year at any other venue."
The final paragraph says:
"13. Consequently these applications fail on the basis that the applicants were contracted to work for 13 weeks commencing in January and ending in April of 1997 and for which they had been paid."
"(2) failing to consider whether it was properly constituted in accordance with section 4 of the Employment Tribunals Act 1996;
(a) the proceedings were initially listed as an unfair dismissal hearing before a chairman sitting alone;
(b) the Appellants' agreed to withdraw their unfair dismissal complaint; the Chairman continued to sit alone and hear a complaint of breach of contract in circumstances where it should have been apparent to him that the claim should have been heard by a full panel, or that there was an issue whether it should be so heard (paragraph 6 of the decision, sections 4(1); 4(3)(d); 4(5)(a) and 4(5)(c) of the Employment Tribunals Act 1996)."
"(1) The appropriate Minister may by order provide that proceedings in respect of –
(a) any claim to which this section applies, or
(b) any claim to which this section applies and which is of a description specified in the order,
may, subject to such exceptions (if any) as may be so specified, be brought before an employment tribunal.
(2) Subject to subsection (3), this section applies to –
(a) a claim for damages for breach of contract of employment or other contract connected with employment,
…
if the claim is such that a court in England and Wales or Scotland would under the law for the time being in force have jurisdiction to hear and determine an action in respect of the claim.
(3) This section does not apply to a claim of damages, or for a sum due, in respect of personal injuries."
So here for the first time Employment Tribunals were given a jurisdiction to hear pure breach of contract cases which hitherto had been heard in either the County Court or the High Court, where, of course, they would have been heard, generally speaking, before a judge, a lawyer alone.
"(1) Subject to the following provisions of this section and to section 7(3A), proceedings before an employment tribunal shall be heard by –
(a) the person who, in accordance with regulations made under section 1(1), is the chairman, and
(b) two other members, or (with the consent of the parties) one other member selected as the other members (or member) in accordance with regulations so made."
So, broadly speaking, although there is obviously a degree of small print there, it is saying that provisions shall be in front of a Chairman with two members, a three person panel. But subsection (2) then provides:
"(2) Subject to subsection (5), the proceedings specified in subsection (3) shall be heard by the person mentioned in subsection (1)(a) alone."
and that is a reference back to the Chairman. Then in subsection (3):
"3) The proceedings referred to in subsection (2) are - "
Then there is a whole category of different alphabetical descriptions, one of which, (d), is:
"(d) proceedings in respect of which an employment tribunal has jurisdiction by virtue of section 3 of this Act."
So, in other words, if it is a breach of contract claim within section 3, which this one was, it would ordinarily be obliged to be heard by a chairman alone, because it would be a subsection (3) case and, therefore, was under subsection (2) to be heard by a Chairman alone. But one has to remember the words that open subsection (2), namely, "Subject to subsection (5)". Subsection (5) say this:
"(5) Proceedings specified in subsection (3) shall be heard in accordance with subsection (1) if a person who, in accordance with regulations made under section 1(1), may be the chairman of an employment tribunal, having regard to –
(a) whether there is a likelihood of a dispute arising on the facts which makes it desirable for the proceedings to be heard in accordance with subsection (1),
(b) whether there is a likelihood of an issue of law arising which would make it desirable for the proceedings to be heard in accordance with subsection (2),
(c) any views of any of the parties as to whether or not the proceedings ought to be heard in accordance with either of those subsections, and
(d) whether there are other proceedings which might be heard concurrently but which are not proceedings specified in subsection (3),
decides at any stage of the proceedings that the proceedings are to be heard in accordance with subsection (1)."
So a Chairman can, in his discretion, require that what is primarily a Chairman-alone case such as, for example, one specified in subsection (3)(d) - a contract claim - can go instead to a full tribunal of three.
"… Subsection (5) confers a discretion on a chairman not to sit on his own in relation to such proceedings having regard to various statutory criteria. Because of the words "Subject to subsection (5)" it is our view that if a chairman sits on his own that is because he has declined to exercise his discretion to refer the matter to a full tribunal. Therefore, whenever a chairman sits on his own he must have exercised his discretion under subsection (5), albeit negatively. A case cannot be heard by a chairman alone without the matters referred to in subsection (5) having been evaluated. There is, thus, a two-stage process: first the proceedings must be identified as qualifying proceedings; and, second, they must be proceedings in which a chairman has exercised his discretion and has not decided that it would be desirable for them to be heard by a full tribunal. The consent of the parties is not determinative as to how the discretion should be exercised both because of the two-stage process and because of the provisions of subsection (5)(c). The matters specified in subsection (5) must be considered whichever paragraphs of subsection (3) apply, including subsection (3)(e).
It seems to us clear that, having regard to the issues of fact in this case, no reasonable tribunal chairman properly exercising his discretion could have concluded otherwise than it was desirable and necessary, for the case to be heard by a full tribunal in accordance with subsection (1) of section 4."
Then at page 1269G:
"… If, in a "sit alone" case, a tribunal chairman had never exercised his discretion at all under section 4(5), it seems to us that the tribunal would not have been constituted in accordance with the statute. If a tribunal was improperly constituted, then it seems to us that it cannot have arrived at a lawful decision. Its decision would be a nullity. On that basis, whether or not the parties had consented to or acquiesced in what happened, the appeal tribunal should remit the case back for consideration by a tribunal properly constituted. Parties cannot confer jurisdiction on a statutory tribunal such as this, either by consent or through the doctrine of estoppel. …"
At page 1270C:
"Further, we are of the view that the parties and the appellate courts are entitled to know why an unidentified or an identified chairman has exercised his discretion under section 4(5). A short statement of the reasons for his conclusions is all that is required. These will show what particular factors he took into account when deciding as he did. The need to give reasons will, we think, be of assistance to chairmen called upon to exercise their discretion because it will help them to focus their attention on the factors which Parliament require them to take into account."
"Because of the words "Subject to subsection (5)" it is our view that if a chairman sits on his own that is because he has declined to exercise his discretion to refer the matter to a full tribunal. Therefore, whenever a chairman sits on his own he must have exercised his discretion under subsection (5), albeit negatively."
Rather the case is that unless the Chairman has decided to go to a panel of three the matter is inescapably proper only for a hearing by a panel of one under section 4(2). There is a danger that the approach adopted in Sogbetun really rewrites the statute by making it operate as if it provided that unless the Chairman had duly declined to choose a panel of three, there should be panel of three. But that is not what the section provides. Parliament could, of course, have expressly cast upon a Chairman an obligation in every case to consider whether the matters described in subsection (5)(a), (b), (c) and (d) pointed towards a hearing in front of a panel of three. Parliament could have provided that that was to apply in every breach of contract case or to some breaches of contract cases, and distinctions might have needed to have been drawn between different categories. But it is a very strange way to frame an obligation on a Chairman which is said to require him to decide something by framing it by saying "if the chairman decides", which is the formula that subsection (5) adopts. If Parliament had meant to cast a duty upon a Chairman invariably to consider the sort of matters that are raised in subsection (5) it would say "the chairman must decide" or "the chairman shall decide" or something along those lines and not begin, as it does, by saying "if the chairman decides".