ADJUDICATION OFFICER DECISION/RECOMMENDATION
Adjudication Reference: ADJ-00008346
Parties:
| Complainant | Respondent |
Anonymised Parties | An employee | An employer |
Complaint(s):
Act | Complaint/Dispute Reference No. | Date of Receipt |
Complaint seeking adjudication by the Workplace Relations Commission under Section 8 of the Unfair Dismissals Act, 1977 |
CA-00011121-001 | 03/05/2017 |
Date of Adjudication Hearing: 02/11/2017
Workplace Relations Commission Adjudication Officer: Jim Dolan
Procedure:
In accordance with Section 8 of the Unfair Dismissals Acts, following the referral of the complaint to me by the Director General, I inquired into the complaint and gave the parties an opportunity to be heard by me and to present to me any evidence relevant to the complaint.
Background:
The Complainant commenced employment with the Respondent on 11/08/2008. His duties included driving for deliveries, store work and shop work. The Complainant was dismissed on 14th April 2017 after being accused of stealing stock without paying for it. Both the Complainant and Respondent were legally represented at hearing, both representatives submitted comprehensive written submissions. |
Summary of Respondent’s Case:
The Manager of the shop whilst undertaking a review of CCTV in relation to other unrelated matters on Friday the 7th April 2017 identified the Complainant as appearing to remove an item of stock the previous night. Following a quick check by the manager an item of stock was identified as missing from the shop. This was JLM extreme clean which has a retail value of €45.00 +vat. No distribution order could be identified on the shop system for the missing stock item. All staff were then asked collectively by the manager if they had any knowledge of the missing item or if they had anything to charge to their account. Everyone denied knowledge. The complainant subsequently came to Mr. Walsh and advised that he had taken the item and offered to pay for it. As the Complainant’s actions in taking company property without permission was considered to be an act of gross misconduct Respondent manager suspended the Complainant with pay with effect from Monday 10th April pending an investigation of the matter. Following an investigation, the matter was the subject of a disciplinary hearing by a Director of the Company. This was held on the 14th April the Complainant offered no explanation for his actions other than to advise that others within the Company had engaged in theft however he was unable or unwilling to provide any facts or other evidence to support such a claim. The Complainant was given every opportunity to address the matter and full consideration was given by the Director to every aspect of the matter. However, following this the Director decided on the balance of probability that the Complainant had engaged in theft which constituted gross misconduct. On the basis, that the Company had zero tolerance to theft the decision was taken to dismiss the Complainant. In coming to that decision, the Director was aware of the consequences of his decision on the Complainant but in the nature of the business where trust and confidence is paramount he had no other option Having been advised of the decision to dismiss him, the Complainant exercised an option to resign, the issue of an appeal therefore in accordance with Company procedures became moot and Mr. Gilligan ceased employment with the Company on the 15th April. Company Position It is the position of the Company that if the Complainant was dismissed that the dismissal was on the basis of Section 6 of the Unfair Dismissals Act. Section 6 (1) and (4) quoted. It is the position of the Company that the decision to dismiss the Complainant related solely to his conduct. The Company operates a scheme where all staff members can purchase products at a significant discount. The Complainant would have been very familiar with the procedure for members of staff to purchase stock for personal use as he had done so on numerous occasions before however on this occasion he made no attempt to do so. Adhering to this process would at maximum take approximately 1 minute to undertake. Even if the Complainant was in a hurry to depart the shop that day, he could have utilised this opportunity to purchase the product on the staff discount system the next morning when he commenced work. The matter was not raised with staff until approximately 11.30 am and the Complainant would have been present in the shop from 8.30 am. It was also open to the Complainant at any time to ask one of his colleagues to charge the stock item to him but chose not to do so. It is the position of the Company that the Complainant appropriated the property of the Respondent without the consent of the company and with the intention of depriving the Company of the benefit of this property. The Complainant’s explanation that he would pay for the product and therefore that the consent could be achieved subsequent to his actions was not accepted by the Company as a reasonable explanation having given full consideration to the circumstances of the matter. Nor was the Complainant’s assertion that other employees were engaged in theft acceptable as being mitigation for his actions The basic facts in the case were not disputed in that it was accepted by the Complainant that he had removed property from the shop in circumstances where he was he was the last member of staff to exit the premises. It is wrong, unless authorised, for employees to remove stock from the shelves and to hold it for later purchase as appears to have been the explanation offered by the claimant. If this was the case the following morning, he could have brought the item in with him and either charged it to himself or asked one of his colleagues to do so. The Company applied its disciplinary process to the Complainant was suspended on full pay pending an investigation and he was informed of the full details of the allegations against him. After the investigation, the matter was then the subject of a disciplinary hearing. The Complainant was made fully aware at all times of the allegation being made against him and was given every opportunity to provide an explanation to this allegation. He was allowed representation at the formal disciplinary meeting. Fair procedures were followed in the disciplinary process and it was conducted in accordance with the principles of natural justice. The Company’s Grievance & Disciplinary procedure confirms that Theft will be considered an act of gross misconduct. The Complainant was aware at all times that the taking of Company goods without permission would be treated as a very serious offence. The Company believes that in all the circumstances of the case, the Company was justified in his dismissal for misconduct. It is an accepted principle in Unfair Dismissals cases involving theft that the value of the goods is not relevant, and an employer is entitled to have a zero-tolerance policy when it comes to theft or fraud. The Complainant did not offer a satisfactory explanation for his conduct in taking the item or why he failed to utilise the staff stock buying system. As part of the investigation the Company examined its CCTV in detail to determine if there was any basis to explain why the Claimant had done what he did. This included examination for any evidence such as circumstances that he tried to access the staff system before he left, or whether anything happened that might have disturbed his concentration or would have deflected an intention to log in and pay for this stock item however there is absolutely no evidence to support such a contention in fact the opposite is the case The Company operates a zero tolerance to matters of theft whilst it has not had any previous incidence of theft involving an employee from the shop which is part of a wider company structure it has dismissed an employee for theft in the other company. The nature of the Company’s business where orders are delivered on a daily business to customers and where the person delivering such stock has sole responsibility for same means that the Company must have absolute trust and confidence in all of its employees where this trust and confidence is damaged it cannot be repaired. The question is that having considered all of the facts of the case whether it was reasonable for the Company to dismiss. It is the position of the Company that it was. The claimant did not offer a satisfactory explanation for the specific incident. The issue was such that it went to the heart of the relationship of trust and confidence between the claimant and the respondent. The Company that it was reasonable to conclude that the claimant’s conduct amounted to gross misconduct. This being the case the appropriate sanction was dismissal. Legal Issues. The Company relies on the decision of Clarke J in Martina Hestor (appellant) v Dunnes Stores Ltd (respondent) Appeal of UD 38/87 M134 [1990] E.L.R. 12. In circumstances similar to this case where he advised “The matter called for a reasonable explanation, and I am satisfied that as Mrs Donnelly stated, something more was reasonably required than an affirmation of failure to remember. The decision to dismiss was made because no sufficient explanation was, in the view of management personnel, given. The situation was obviously one calculated to arouse deep suspicion and requiring a satisfactory explanation. In the circumstances the management did not act unfairly or without justification in all the circumstances of the dismissal.” A similar position was followed by the Circuit Court in Deegan v Dunnes Stores [UD202/2012, MN152/2012] Dunnes had an employee purchases policy. In this case Dunnes required employees who purchase food on the premises should get their receipt signed by a store manager. Store manager became aware that there were serious breaches of company policy in the deli area of the store in relation to the employee purchases policy. Accordingly, CCTV cameras were installed. On viewing CCTV footage recorded on the cameras he invited the claimant to attend an investigation meeting on 7 October 2011. The claimant was shown CCTV footage and admitted to consuming food without payment. The Tribunal found that the claimant was unfairly dismissed but was satisfied that she contributed by 2⁄3 to the fact of her dismissal. Dunnes appealed to Circuit Court where Judge Linnane overturned the EAT decision and held that “there were substantial grounds justifying the company’s ‘fair decision’ to dismiss her along with seven other members of staff” and also that “[t]here was not only a breach of company policy of which she was aware but there was a breach of trust…” The EAT has accepted that the test to be applied as to whether the sanction was reasonable is as set out in the case of Noritake (Ireland) Limited v Kenna (UD88/1983) in which the EAT considered the matter in terms of three questions:
The Company believes that the answer to all of these questions is yes The Claimants annual salary at date of dismissal was €23,850. It is noted that the claimant has mitigated his loss by taking up new employment Conclusion: It is the Company position that misappropriation of Company property is considered to be an act of gross misconduct, the decision to dismiss was based on the grounds of loss of trust and confidence in him as an employee. The Company is satisfied that the conduct concerned justified dismissal and that this therefore does not constitute an unfair dismissal for the purposes of the Act Finally, and without prejudice should the Company be found to have unfairly dismissed the Claimant then the Adjudicator must also consider Section 7(2)(f) of the Unfair Dismissal Act (as amended by Section 6(6) of the 1993 Act) and the extent to which the conduct of the claimant contributed to the dismissal. In the circumstances of this case it should be found that the Claimant contributed 100% to his own dismissal.
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Summary of Complainant’s Case:
The events leading to the complainant’s dismissal began as far back as 16th December 2015, when he was issued with a formal written warning by the respondent for unexcused absence and insubordination. The complainant was unable to attend work in or around 14th December 2015 due to unforeseen circumstances where his car out of service and he had to arrange for his children to be collected from school / crèche. Despite the complainant explaining this to his manager he was issued with a Written Warning. The Complainant felt that this was very strict and different to the way other employees would be dealt with. It was now that the Complainant believed that was suffering bullying at the hands of his manager and reported this to one of the respondent company directors. The matter was not investigated and no further action was taken by the company. It was submitted by the Complainant’s representative that it was at this time that the Complainant’s relationship with his manager became strained and he believed that he was being treated less favourably by his manager compared to other employees of the respondent company. 6th April 2017. Over the years, a practise had developed in the respondent company whereby employees could purchase motor parts and products at a reduced rate by advising the management that they wished to purchase the product and then discharge the cost to the company. On this particular day, the complainant took a product from the store shelf for personal use. As there was no management present at that time he intended to pay for the product the next day. 7th April 2017. The manager asked all staff present, including the Complainant, whether any items had been taken off the shelves. The Complainant said nothing however a few minutes later the complainant went to the manager’s office and informed him that he had taken a product and now wished to discharge the cost of the product (value in or around €40). The manager advised the Complainant that he should have placed the item on the ‘suspended account’. When the Complainant informed the manager that this was not the normal practice he was informed that it would be the practice going forward. The Complainant left the office and worked for the remainder of his shift. 10th April 2017. The Complainant was informed that he was being suspended with pay, during this meeting the Complainant was told to sign a letter which allegedly purported to set out the facts of the incident. A letter dated 10th April 2017 was given to the complainant at this meeting, this letter states: “It is alleged that on Thursday 6th April you stole a product without paying for this”. The letter goes onto say that “As per the disciplinary policy, please be advised that suspension is no way a disciplinary sanction or a penalty against you and is implemented in order for a full investigation into the above matters to take place”. 14th April 2017. The Complainant attended the meeting on 14th April, the meeting was chaired by a company director. At this meeting the Complainant tried to explain what had happened on the evening of 6th April and how he had always intended to discharge the cost of the product. He went onto explain what he considered was the practice in the store where employees are permitted to purchase motor parts and products at a reduced rate. It was submitted that the director acting on behalf of the respondent company had no intention of investigating the matter whatsoever and had clearly made up his mind from the outset that the complainant was to be removed from his position. It was submitted that in breach of fair procedures and rights to natural justice, the director then informed the complainant that he had a choice; dismissal or resignation with a reference. It was submitted that the respondent company had prepared in advance of the disciplinary meeting two letters both dated 14th April 2017, one terminating the complainant’s contract of employment and another in full and final settlement of his employment. A copy of both letters was provided to the complainant by the director and were produced at the hearing. It was submitted that given the manifestly unfair options provided to the complainant by the director, the complainant indicated dismissal to which the director then proceeded to threaten him by saying that he would interfere in any job he obtained within 100 miles of company and that he would “f**k it up” for him. The meeting was suspended so that the complainant could speak to his wife on the telephone. The complainant’s wife advised him to look for reference from the director. It was submitted that the complainant was forced by the director on behalf of the company to sign a letter dated 14th April 2017 which purported to be in “full and final settlement” of the matter. The complainant was provided with one week’s notice and a reference. The complainant was not provided with the notes of the disciplinary meeting dated 14th April 2017 and further was not informed by the director of his right to appeal the decision to dismiss to senior management in breach of a term of the contract of employment. Relevant Legislation. Unfair Dismissals Act 1977 (as amended) – Section 6 (1) (2) (4) (6) and Section 7 (1) and (2) were quoted. Legal Submissions. It was submitted that given the strained relationship that the complainant had with his manager, that the company used the opportunity to dismiss him without any investigation and right to fair procedures or natural justice. It was submitted that the investigation conducted by the respondent was not conducted in accordance with fair procedures and natural justice and further that it was in breach of procedures for investigation as set out in the complainant’s contract of employment. Neither the manager or the director provided minutes of their disciplinary meeting with the complainant on 10th April 2017 or 14th April 2017. It is submitted that prior to the disciplinary meeting held on 14th April 2017, he was not made aware by the respondent that he could potentially be dismissed from his position. The complainant was not informed by the respondent that he could be sacked as a result of the investigation. It is submitted that the respondent failed to investigate at all the complaint made by the complainant under the grievance procedure against the manager. It is submitted that the disciplinary hearing conducted by the director was fundamentally flawed and failed to afford the complainant with fair procedures and natural justice and further failed to the complainant with a hearing as provided for in the complainant’s contract of employment and in particular failed to investigate the matters in full. It is submitted that the outcome of the purported investigation and the disciplinary hearing conducted by the director were predetermined by the respondent as management wanted to try and justify the dismissal of the complainant. It is submitted that the director acted as judge, jury and executioner in the complainant’s case. It was respectfully submitted that the procedures, and the resulting decision to dismiss the complainant, were wholly predetermined and designed to bring about the complainant’s removal from the workplace. The respondent’s treatment of the complainant, including his immediate suspension on 10th April 2017, demonstrate in the clearest of terms the level of predetermination of the respondent and its clear resolve and determination to bring about the complainant’s permanent removal from the workplace Without prejudice to the above position that the complainant’s dismissal was automatically unfair by reason of the fact that it resulted wholly or mainly from the complainant being vilified for engaging in a work practise which all employees of the respondent took part in, it is submitted that, even if that were not the case, the decision to dismiss the complainant was wholly disproportionate, having regard to the complainant’s employment record and the nature of the misconduct alleged. It was submitted that the Adjudication Officer is not prohibited from reaching a determination on the proportionality of the respondent’s decision to the dismissal; as stated in the judgement of McGovern J. in Doyle v Asilo Commercial Limited [2008] IEHC 445, it is for the Adjudication Officer to determine “whether [the] investigation is reasonable and whether the decision to dismiss in light of the results of that investigation, is a reasonable response”. It was submitted in this case that the so-called investigations lacked reasonableness in that they were embarked upon by the respondent’s management for an ulterior motive; namely, to bring about the complainant’s dismissal. It was further submitted that, even if those investigations were bona fide (which is denied), the decision to dismiss the complainant did not constitute a reasonable response to the misconduct alleged. The powers of the Adjudication Officer, and Labour Court and High Court on appeal, to scrutinise the proportionality and reasonableness of an employer’s decision to suspend and ultimately dismiss is expressly recognised in the judgement of Noonan J., in the case of Bank of Ireland v Reilly [2015] IEHC 241. That case concerned an employee accused of sending emails of an inappropriate and obscene nature, in contravention of the employer’s IT policy. Like the complainant in this case, Mr. Reilly was employed for approximately 8 years with a previously impeccable record. Mr. Reilly, admitted to sending the emails in question, thereby contravening the employer’s IT policy. Regarding the decision to immediately suspend Mr. Reilly in that case, Noonan J. stated as follows: The suspension of an employee, whether paid or unpaid, is an extremely serious measure which can cause irreparable damage to his or her reputation and standing. It is potentially capable of constituting a significant blemish on the employee's employment record with consequences for his or her future career. As noted by Kearns J. (as he then was) in Morgan v. Trinity College Dublin[2003] 3 I.R. 157 , there are two types of suspension, holding and punitive. However, even a holding suspension can have consequences of the kind mentioned. Inevitably, speculation will arise as to the reasons for the suspension on the premise of there being no smoke without fire. Thus, even a holding suspension ought not be undertaken lightly and only after full consideration of the necessity for it pending a full investigation of the conduct in question. It will normally be justified if seen as necessary to prevent a repetition of the conduct complained of, interference with evidence or perhaps to protect persons at risk from such conduct. It may perhaps be necessary to protect the employer's own business and reputation where the conduct in issue is known by those doing business with the employer. In general, however, it ought to be seen as a measure designed to facilitate the proper conduct of the investigation and any consequent disciplinary process. Regarding the proportionality of the employer’s decision to dismiss in that case, Noonan J., stated as follows: In assessing the reasonableness of the employer's conduct in relation to the dismissal herein, it seems to me that such an assessment must have regard to the surrounding circumstances, including the impact of the conduct on the employer as against the impact of the dismissal on the employee to determine the proportionality of the employer's response. There is no doubting the inappropriateness of the emails and even Mr. Reilly appears to accept that sending them constituted misconduct deserving of some sanction. It is ultimately a matter of opinion as to whether some or all of the images were pornographic, obscene and so forth but certainly the bank were entitled to come to a view on this. Whether it is a view shared by the court or anyone else is not material as the authorities suggest. The same considerations apply to whether they ought to be regarded as offensive and certainly to some, perhaps most, people that would undoubtedly be the case. However, the fact remains that there is no evidence that anybody was actually offended by any of these emails. Nobody complained. The bank did not call any recipient to give his or her opinion on them. The bank say that they had the potential to reflect unfavourably on it and perhaps even for it to be sued. That may well be so but none of this actually happened over a fairly long period, perhaps because those in receipt of the emails either wanted to receive them or acquiesced in receiving them. Indeed, as the evidence makes clear, it was by mere chance that Mr. Reilly's behavior was even detected. In short, there is no evidence that the bank suffered any loss, damage or detriment whatsoever as a result of the conduct complained of. Having regard to all of the foregoing, I am satisfied that the conduct of the bank in relation to Mr. Reilly's dismissal and the events leading up to it could not by any objective standard be described as reasonable. It was submitted that there are some striking similarities between the circumstances leading to dismissal in the Reilly case and that in the complainant’s own case. It was submitted that, having regard to the nature of complainant’s alleged misconduct in circumstances where he was being condemned for engaging in the established practise of the company by all employees and his impeccable record with the respondent for 9 years, the respondent’s decision to dismiss could not by any objective standard be described as reasonable. Furthermore, the respondent’s conduct in suspending the complainant, it is submitted, wholly unreasonable, unnecessary and unjustified and the complainant relies on the dicta of Noonan J. above, in that regard. The complainant further relies on the decision of the Employment Appeals Tribunal in Ruairi Heuston v Gregg Martin Crash Repair Limited UD835/2012 in which the claimant was found to have been unfairly dismissed and awarded the sum of €40,000 in circumstances where he admitted to an isolated incident of having addressed a work colleague (his supervisor) in an inappropriate and verbally abusive manner. In the case of Sadowska v Players Leisure Limited t/a Players Leisure Limited UD1658/201, the claimant was accused of breaching company policy in taking money from the company float without permission, instead leaving a note for her employer. In finding the dismissal in that case to be unfair, the Employment Appeals Tribunal exercised its jurisdiction to scrutinise the proportionality of the respondent’s decision to dismiss, stating as follows: “In considering the proportionality of the sanction the Tribunal noted that when she was dismissed the claimant had worked for more than 7 years and that no alternative sanction was considered.” Conclusion. By reason of the above, the complainant contends that the decision to dismiss, as well as the several processes embarked upon by the respondent to bring about that result, were fundamentally and irretrievably flawed. Without prejudice to the complainant’s position in that regard, it is contended that the decision to dismiss him was, in any event, completely disproportionate, unreasonable and patently unfair having regard to the nature of the alleged misconduct, the complainant’s record within the respondent’s organisation and the respondent’s treatment of the complainant in the weeks prior to and during those procedures. The complainant therefore requests the Adjudication Office to uphold his complaint under the Unfair Dismissals Acts 1977, as amended. |
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Findings and Conclusions:
Both parties submitted comprehensive written submissions and these have been helpful in reaching a conclusion in this case. There is agreement that the Complainant did remove one item of product, JLM Extreme Clean, on the evening of 6th April 2017. By letter dated 10th April 2017 the Complainant is informed that he has been placed on paid suspension from the company to accommodate a full and thorough investigation into the matter. The next communication appears to be by telephone on 13th April 2017, the Respondent Manager rang the Complainant informing him that he had to attend a disciplinary meeting the next day i.e. 14th April at 1. 00pm.There appears to have been no mention that the outcome of such a meeting could be a disciplinary sanction up to and including dismissal. At the meeting on 14th April the Complainant was given the option of having a colleague accompany him, the Complainant declined this offer. At this meeting the Complainant attempted to explain what had happened on the evening of 6th April and how he intended to discharge the cost of the product (pay for it). He also attempted to explain the practice in the store where employees are permitted to purchase motor parts and products at reduced rates. The Director chairing this meeting informed the Complainant that he had viewed the CCTV footage. I find it strange that the Complainant was not interviewed as part of the investigative process and that the only opportunity he had to explain things was at the disciplinary hearing on 14th April 2017. CCTV footage was viewed and would appear to be the only consideration prior to a decision to dismiss the complainant. An employer should not equate video footage, for example, of an employee taking money from the till with an admission of dishonesty by him such that it remains only for the employer to speak the words of dismissal. In the event of video evidence, an impugned employee should be suspended pending investigation in the normal way (Maguire v Funny Biz Ltd UD879/1992). The investigation process and disciplinary procedure should not have been part of the same meeting, it appears in this instant case that they were. Representative for the Complainant alleges that the Director acted as judge, jury and executioner in the Complainant’s case. To a point, I find it hard to disagree. The Complainant was an employee with almost nine years’ service, he was employed in a position of honesty and trust. On the evening in question he removed a product from the stores for his own personal use bypassing the normal procedures for employee purchases, I’m quite sure he would have been aware of what the normal process was. There is a question as to what process other employees followed when purchasing products. The following morning the Complainant had sufficient time to utilise the correct procedure prior to all employees being approached by the Manager. He did not utilise the correct procedure and he and only he will ever know whether this was ever his intention. It appears to have “slipped his mind”. The Employment Appeals Tribunal (EAT) in Britain takes a two-stage approach to dishonesty. First it must decide whether according to the ordinary standards of reasonable and honest people what was done was dishonest. If so, then secondly, consideration must be given to whether the person concerned must have realised that what he or she was doing was by those standards dishonest. (John Lewis plc v Coyne [2001] IRLR 139) In this case did the Complainant believe what he was doing was dishonest or was it a case of what he was doing was what all other employees were doing? In this case I cannot decide totally in favour of either of the parties. The Respondent conducted an investigation that I believe was flawed in as much as it denied the Complainant the opportunity to put his version of events to management prior to the disciplinary meeting he was invited to via a telephone call. He was not made aware of the possible consequences / outcome of this meeting. The Complainant removed product from the store bypassing the normal procedures, at one stage it was stated that he was the only employee on the premises at that time and therefore not in a position to inform management of his intention to purchase. Could he not have waited until the next day when a member of the Respondent’s management was present? The next day he claims it slipped his mind to inform management and discharge the cost of the product.
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Decision:
Section 8 of the Unfair Dismissals Acts, 1977 – 2015 requires that I make a decision in relation to the unfair dismissal claim consisting of a grant of redress in accordance with section 7 of the 1977 Act.
In this case I find in favour of the complainant however I feel that he contributed to his own dismissal and was 50% at fault for his own dismissal. I note that the complainant commenced employment with another company two weeks after his dismissal. In accordance with Section 7 of the Unfair Dismissals Act 1977 I award the complainant payment for these two weeks i.e. €29,062.67 /52 = €558.90 x 2 = €1,117.80 Plus Loss of weekly earnings of €117.65 = €6,117.83 per annum. €1,117.80 + €6,117.83 = €7,235.63 x 50% = €3,617.82 Total amount awarded = €3,617.82 Payment of award to be paid within 42 days from the date shown below. |
Dated: 17/11/17
Workplace Relations Commission Adjudication Officer: Jim Dolan
Key Words:
Dismissal, Contributory Negligence |