ADJUDICATION OFFICER DECISION
Adjudication Reference: ADJ-00004285
Parties:
| Complainant | Respondent |
Anonymised Parties | A Service Advisor | A car retailer |
Complaint:
Act | Complaint Reference No. | Date of Receipt |
Complaint seeking adjudication by the Workplace Relations Commission under Section 8 of the Unfair Dismissals Act, 1977 |
CA-00005728-001 | 06/07/2016 |
Date of Adjudication Hearing: 13/04/2017
Workplace Relations Commission Adjudication Officer: Kevin Baneham
Procedure:
On the 6th July 2016, the complainant referred complaints to the Workplace Relations Commission pursuant to the Unfair Dismissals Act. The complaints were scheduled for adjudication on the 13th April 2017.
The complainant was represented by Stephen O’Connor, BL, instructed by Fitzpatrick Gallagher McEvoy solicitors. Two family members accompanied the complainant. The respondent was represented by William Kelly, BL, instructed by Mary Cullen solicitor. Two witnesses attended on its behalf: the Dealer Principal and the company director.
In accordance with section 8 of the Unfair Dismissals Acts, 1977 – 2015 following the referral of the complaint to me by the Director General of the Workplace Relations Commission, 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 asserts that she was constructively dismissed from her employment with the respondent. She worked for the respondent between 1998 and 2016 and received remuneration of €640.54 gross per week. The respondent denies the claim and also raises a preliminary objection arising from High Court personal injury proceedings taken by the complainant against the respondent. |
Summary of Complainant’s Case:
In respect of the respondent’s preliminary application, the complainant indicated that there was no loss of earnings claim in the personal injury proceedings. Any issue of double recovery would be a problem for the High Court to address. The case of Stephens v Archaeological Development Services Ltd [2010] IEHC 540 concerned interference between two sets of proceedings. This did not apply here as the unfair dismissal claim was the loss of earnings claim, and there is no such case pleaded in the personal injury proceedings.
In evidence, the complainant said that she commenced working for the respondent in June 1996 and was not provided with a contract of employment or a grievance procedure at this time. She initially worked as a receptionist and in 2004 or 2005, took on the role of Service Advisor. The respondent was in the business of selling and servicing cars. Her role involved dealing with customers and managing technicians. In 2013, the receptionist left and was not replaced. The complainant then did both roles as there was no-one else to do the receptionist role. She informed respondent management of the need to appoint a replacement receptionist, saying that she raised this with the Managing Director and the former Dealer Principal, her line manager. She stated that she raised this issue every couple of weeks and months.
The complainant outlined that in 2014, the respondent lost the franchise of a leading car manufacturer, but retained the after-sales service for this brand. It also had two other franchises. There was increasing footfall at this time. When she was on a period of annual leave, the former Dealer Principal texted her to say that the Service Manager had left and that she should prepare herself for her return to work in August 2014. The Service Manager was not replaced and she said that she “came back to hell”. The message had ruined her holiday as she knew that it would be difficult on her return. When she came back to work, there had been cars left in the garage over the period of her annual leave. She was left to deal with the service issues. The Service Manager role managed the whole department, taking bookings and managing technicians, including preparing their work schedules. The Service Manager had been technically trained, and she was not. She raised this with management, in particular as they were managing three brands and the respondent was getting busier.
The complainant outlined that the respondent introduced an incentive/target system in March 2015, which was successful for the first few months. The respondent, however, upped the targets in August or September 2015. This increased workload impacted on the complainant’s health and she started to drop the ball. She was busy in answering the phone at reception and dealing with customers. It started to affect her sleep and her personal life. She raised this with management and the respondent accountant, in particular as the garage was getting busier and took on a new car franchise.
In November 2015, the complainant approached the Dealer Principal and broke down in front of him. She said that he needed help and that she could not do this on her own. She said that she also needed to take a few days off. She then went to her GP and was signed off on sick leave between the 18th and 25th November 2015. During this time, a named colleague texted her to say that a receptionist had been taken on. The complainant returned to work on the 26th November 2015 and expected to meet the new receptionist. This person, however, had only been hired for one week. The complainant found that nothing had changed on her return. She did not speak to management or the accountant. She realised that despite going to the Dealer Principal in a terrible state, nothing had changed. She had a meltdown in work and began shaking and crying.
The complainant went on a second period of sick leave after the 27th November 2015 and was certified as unfit for work by her GP. She remained on sick leave until the New Year. She was not paid while on sick leave. The complainant resigned in March 2016. She said that a medical appointment had been arranged for March 2016 and then re-arranged for a later date.
The complainant commenced new employment in November 2016. She had been on €35,000 with the respondent and was on similar pay with her new employer. The complainant stated that in October 2016, she had been approached by a party opening a new store, who was aware of what had happened with the respondent. The complainant said that she had attended interviews for other roles in October 2016. She had not thought that she would return to the motor industry and that at this time, she had not been ready to go back to work.
In the period between November 2015 and March 2016, the Dealer Principal had contacted the complainant by phone to ask how she was and what he could do. She told him how she was and that it was too late to do anything. She knew that she could not go back to work with the respondent, even if she was offered a million euro.
In cross-examination, the complainant said that she could not recall if there had been a probation period and stated that she had not signed a contract. A copy of a contract was put to the complainant and she accepted that she had annotated this. It was put to the complainant that she had been supplied with a grievance procedure; she replied that she had been away when this was circulated. The complainant said that there had not been an increase in her pay when she took in the Service Advisor role in 2003. She agreed “pretty much” that there had been no issues with her employment until 2014. She accepted that her complaint form stated that the receptionist resigned in 2014, when this took place in 2013. It was put to the complainant that 2014 had been the worst year in living memory for the respondent business; the complainant replied that she was not aware of this. It was put to the complainant that the receptionist was made redundant as 80% of the calls were for the Services Department; she replied that she did not think that this was the case. It was put to the complainant that she said that her workload doubled when the receptionist left but 80% of the calls were for the Services Department; she replied that she carried out both the receptionist and Service Department roles, and that the respondent also had busy sales and parts departments. The complainant was asked whether she emailed her line manager and the Managing Director about being overwhelmed with work in 2014; she replied that she spoke verbally to people, including the former Dealer Principal. It was put to the complainant that she should have lodged a grievance in writing to her line manager; she replied in hindsight, yes but she had raised this in face-to-face conversation. She had conversations with management during the course of 2015 regarding her doing the two roles. The complainant agreed that she went to the Dealer Principal on the 17th November 2015 and was upset and stressed and that she was granted a week off on sick leave from the 18th November 2015.
It was put to the complainant that the Dealer Principal checked in on her informally on the 26th and 27th November 2015; she replied that he may have done so once or twice. The complainant accepted that she had submitted medical certificates for the period of the 7th December 2015 to the 22nd March 2016 and that she had two conversations with the Dealer Principal in that time. She acknowledged receiving correspondence from the respondent on the 17th December 2015 and she was not sure if she replied to the email. It was put to the complainant that she stated that they had discussed these issues many times in response to the statement that the respondent had no idea that work was causing her stress; she replied that she was mentally in a difficult position. It was put to the complainant that the respondent had asked for a written account of her issues; she replied that she did not respond because it was then too late. She had worked for the respondent for 20 years, so it was a big decision for her to resign. It was too late and the damage had been done.
It was put to the complainant that she had not submitted a grievance in writing; she replied that her having a meltdown was enough evidence of her need for help. It was put to the complainant that she was a longstanding and valued employee and could have replied to the email of the 17th December 2015; she disputed the reference to her being “valued”. It was put to the complainant that the email of the 17th December 2015 had been excluded from her booklet for this adjudication; she replied that she did not see the relevance of the email. In respect of attending a medical assessment, the complainant had told the Dealer Principal that she could not attend the appointment on the 8th March 2016. She was not ready to attend anything to do with the respondent and her GP had deemed her unfit to work. It was put to the complainant that her attendance at the occupational health service would have facilitated her return to work. It was put to the complainant that she had been sent a further email of the 14th March 2016 and offered a second appointment; she replied that she had not attended the second appointment. The complainant was asked whether she had acted reasonably in the period from mid-2014 to the 21st March 2016 in terminating her employment when all the respondent was trying to do was to get to the root of the problem; she replied that she had raised the issues with the Dealer Principal on the phone. She was asked whether the phone call had been a reasonable response when she had been asked to go an occupational health assessment. It was put to the complainant that there had been nothing in writing until her letter of resignation. It was put to the complainant that at the first hint of the employer trying to resolve the issues, her response was to resign; she replied that it was too late. She had panic attacks and the respondent only acted after her breakdown. She had also not been thinking clearly. She questioned whether the respondent understood what had happened.
In further questioning, the complainant stated that she received Illness Benefit after her resignation and that she had resolved an overpayment in December 2016. The complainant accepted that she was only fit to return to work in November 2016 and that she had done interviews in October 2016 to build her confidence. In re-examination, the complainant said that she did not recall receiving the contract exhibited by the respondent and received this later in 2012 or 2013.
In reply, the complainant said that the named Parts Manager had only taken on the warranty role from the Service Manager. The complainant had dealt with the remaining aspects of the Service Manager role, for example service customers and she handled money. During the time of her changed role, there were four technicians and the respondent had taken on new franchises. There had been an increase in demand for service as sales slowed. She said that she had a number of conversations with the respondent and the 26th and 27th November 2015 and she never said she was fine. The figures doubled when she took on the Service Manager role and the bonus structure was changed to make the targets unreachable.
In closing comments, the complainant outlined that the evidence was clear that she suffered a psychological injury arising from her employment that was reasonable to foresee. The respondent was aware of the complainant’s workload difficulties. The respondent had sought to scramble its response in emails sent to the complainant when it was too late and when the damage was done. It was then too late for the complainant to put issues in writing. The complainant relied on the Allen v Independent Newspapers [2002] E.L.R. 84 and stated that there was plenty of evidence that the complainant suffered mental health difficulties caused by the respondent and that it had been the conduct of the respondent that caused the complainant to resign. The complainant had visited her GP and was prescribed medication. |
Summary of Respondent’s Case:
The respondent raised the preliminary matter of personal injury proceedings taken by the complainant against the respondent. It was submitted that the adjudication hearing should not proceed at this time as there were extant High Court proceedings. The respondent referred to paragraphs 57, 58 and 61 of Stephens, where the High Court considered claims being maintained at the same time. The Court referred to caveats about such multiple proceedings, including the need for demarcation between the claims, that there should be no double recovery and the need for case management, which is the preserve of the High Court. The respondent also referred to the decisions in Cunningham v Intel [2013] IEHC 207 and Morgan v Irish Horse Welfare Trust [2014] 25 E.L.R. 41. It acknowledged that a loss of earnings element to the claim in the latter case. The respondent also referred to the inherent jurisdiction of the High Court to make orders in relation to the personal injury proceedings and that this adjudication hearing could interfere with that jurisdiction.
In evidence, the Dealer Principal said that he had been in this role since November 2014. He was responsible for the day-to-day workings of the garage and he had worked with the complainant until her resignation in March 2016. He said that the complainant had raised her concerns about the workplace in November 2015. He stated that the complainant had not put her concerns in writing. In respect of the conversation of the 17th November 2015, the Dealer Principal stated that the complainant had come into his office and raised the issue of the pressure of the workplace. She said she needed time off, asking for a week off. He replied that she could take the week off. He called the complainant into his office on her return to work to ask her how she was. She replied that she was coping much better and he stated that his door was always open. He spoke to the complainant again in the afternoon and she responded that it had been a hard day, but everything was good. The Dealer Principal spoke to the complainant again on the Friday morning and after this conversation, he was satisfied that everything was back to normal.
The Dealer Principal outlined that sales were low when he started in the role in 2014. The garage had sold 750 cars in the good times, but only sold 150 cars in 2014/15. Sales calls were low, so there was no need for a standalone receptionist. 80% of the calls were for the after-sales and services department. The Dealer Principal did not accept that the complainant’s workload doubled when her role changed. He added that the workshop was also slow. In respect of the departure of the Service Manager, the Dealer Principal said that his predecessor had given some of the Service Manager’s duties to the Parts Manager and some duties were given to the complainant. It was the Parts Manager who dealt with customers and the complainant did not have full responsibility. As far as he was aware, the complainant did not raise an issue with the Managing Director, as provided by the grievance procedure. The complainant’s working hours did not change following the change in her role.
During the period of sick leave, the complainant sent him the medical certificates and there was no further contact from the complainant. The Dealer Principal sent the complainant the email of the 17th December 2015 regarding the causes of her stress, but she never replied. He would have addressed any grievance she had and he wanted to meet the complainant to discuss this. The email of the 29th February 2016 regarding the occupational health assessment sought to assess the timescale around her return, but did not address the nature of the role. The Dealer Principal phoned the complainant on two occasions regarding her well-being and asked if there was anything he could do. He discovered that the complainant had not attended the occupational health appointment on the 8th March 2016 and so, a second appointment was organised for the 14th March 2016. The complainant emailed on the 3rd March 2016 to say that she could not attend the 8th March appointment and the second appointment was then organised. The Dealer Principal phoned the complainant after she did not attend the 14th March appointment to ask to meet her and to ask what he could do. The complainant replied that she was not ready to meet him and she would contact him. The complainant then sent the letter of resignation on the 21st March 2016. The Dealer Principal said that the complainant had been given a week off and the complainant had not escalated this to the Managing Director. He said that there was nothing more he could have done.
In questioning, the Dealer Principal agreed that he commenced in the role in November 2014. It was put to the Dealer Principal that the complainant never said everything was okay on the 26th or 27th November 2015; he replied that they had a meeting on the Thursday and she said she was coming back as she feeling better. They had not discussed her work situation. He commented that when he commenced in the role, the receptionist and service advisor were the same. He agreed that the Managing Director did not live in Ireland and lived in a named EU state. The Dealer Principal was asked what steps he had taken to improve the complainant’s work situation; he replied that the complainant had said she was fine and no change was, therefore, made to her work situation. The Dealer Principal was asked whether he offered additional support in the form of training; he replied that he had said to the complainant that his door was always open and acknowledged that the offer of training had not been made. It was put to the Dealer Principal that the complainant had been medicated and it was reasonable for her to limit her engagement with the respondent; he did not agree with this and said that her lack of engagement was unreasonable.
The company director gave evidence. He said that he had been a company director of the respondent since late February 2014 and worked in the role for eight hours per week. He directed that the letter of the 7th April 2016 be sent to the complainant. He said that the Service Director left because his position became unviable. The respondent introduced the bonus structure and no employee had complained. In questioning, it was put to the company director that the complainant had raised her workload with him; he replied that the complainant had never complained about her workload. It was put to the company director that he worked on the financial aspects of the respondent; he replied that while his background was in finance, he oversaw all aspects of the company. The company director was asked who the “I” was in the letter of the 7th April 2016; he replied that he did not know whether the letter had been signed. In further evidence, the company director said that the only change in the bonus structure was to do with the number of working days for each month. He stated that there had been one technician and three apprentices.
In closing comments, the respondent submitted that when an employee asserts constructive dismissal, the burden of proof falls on the employee. The complainant has not established that she has discharged this burden for three reasons. First, she had not acted reasonably; second, her resignation was not the final resort and third, she was under an obligation to explore all options, including the grievance procedure. On no analysis of the chronology could it be said that the complainant had acted reasonably. There were difficulties in November 2015 and the complainant requested one week off. The complainant then returned to work and was off on sick leave for a further four months. The complainant never specifically set out her difficulties despite being called upon to do so. There is an obligation on an employee to behave reasonably when contemplating resignation. The complainant declined to set out her complaint in writing and ignored the emails sent by the respondent. She refused to attend occupational health appointments and resigned instead. This was the opposite of a reasonable response.
It was further submitted that the grievance procedure provided that the employee could ask the Dealer Principal to escalate the grievance to the Managing Director. No such request was made of the Dealer Principal. The complainant’s resignation was not the final resort and at the first engagement by the employer to deal with the health issues, she resigned. This was a case where the complainant resigned and was not constructively dismissed. She had not acted reasonably or fairly. Even if the claim succeeds, it was submitted that the complainant had been in receipt of Illness Benefit and could not work. She cannot recover for losses. Referring to the analysis of the Allen decision in Frances Meenan ‘Employment Law’, the respondent submitted that the evidence given before the Employment Appeals Tribunal in that case was psychiatric evidence, so the Tribunal could link the injury to employer conduct. It was not possible for the Adjudication Officer to find in this case that the employer caused psychiatric injury to the complainant. This was not a case on the lines of Allen as insufficient medical evidence had been presented. |
Findings and Conclusions:
The complainant commenced employment with the respondent in 1998. Her employment ended when she tendered her resignation by email of the 21st March 2016. She gave one month’s notice. The complainant asserts that she was constructively dismissed by the actions or lack of action of the respondent and submits this claim pursuant to the Unfair Dismissals Act. The respondent denies the claim and asserts that the complainant had not acted reasonably.
The respondent also raises a preliminary matter of personal injury proceedings taken in the courts by the complainant against the respondent. The respondent submitted that this case should be adjourned pending the conclusion of the High Court proceedings, relying on certain dicta of the Stephens case and the Morgan decision where the Employment Appeals Tribunal adjourned an unfair dismissal claim on similar grounds. The complainant replies that her proceedings are demarcated and any issue regarding double recovery etc can be addressed by the High Court. She submits that she has not pleaded loss of earnings in the personal injuries claim and this is what she seeks in these proceedings.
Having considered the submissions, I note in the first instance that the EAT decision in Morgan adjourned proceedings on the basis of Regulation 14 of the Redundancy (Redundancy Appeals Tribunal) Regulations, 1968 (S.I. 24/1968). This statutory power has not been extended to Adjudication Officers appointed on foot of the Workplace Relations Act. Notwithstanding this, I find that these proceedings should continue. It is clearly not within my jurisdiction to find that the complainant incurred a psychiatric injury or to determine any question arising from the personal injury claim. My role is restricted to whether the complaint made pursuant to the Unfair Dismissals Act is well-founded and if this is the case, what financial loss the complainant incurred.
The claim is one of constructive dismissal, i.e. arising from the employee’s termination of her employment on foot, it is alleged, of the conduct of the employer. This form of dismissal is provided at section 1 of the Unfair Dismissals Act, in particular at subsection (b) of the definition of “dismissal”. This provides: “dismissal”, in relation to an employee, means— “(b) the termination by the employee of his contract of employment with his employer, whether prior notice of the termination was or was not given to the employer, in circumstances in which, because of the conduct of the employer, the employee was or would have been entitled, or it was or would have been reasonable for the employee, to terminate the contract of employment without giving prior notice of the termination to the employer.”
The classic formulation of the legal test in respect of constructive dismissal was provided by the UK Court of Appeal in Western Excavating (ECC) Ltd v Sharp [1978] IRLR 27. This laid out two tests, referred to as the ‘contract’ and the ‘reasonableness’ tests. It summarised the ‘contract test’ in the following terms: “If the employer is guilty of conduct which is a significant breach going to the root of the contract of employment, or which shows that the employer no longer intends to be bound by one or more of the essential terms of the contract, then the employee is entitled to treat himself as discharged from any other performance.” The ‘reasonableness test’ assesses the conduct of the employer and whether it “conducts himself or his affairs so unreasonably that the employee cannot fairly be expected to put up with it any longer, if so the employee is justified in leaving.”
In respect of repudiation of contract, the Supreme Court in Berber v Dunnes Stores [2009] 20 E.L.R. 61, held that the test for whether employer conduct had breached the implied term of mutual trust and confidence in every contract of employment was an objective one. Finnegan J. held: “1. The test is objective. 2. The test requires that the conduct of both employer and employee be considered. 3. The conduct of the parties as a whole and the accumulative effect must be looked at. 4. The conduct of the employer complained of must be unreasonable and without proper cause and its effect on the employee must be judged objectively, reasonably and sensibly in order to determine if it is such that the employee cannot be expected to put up with it.”
In relation to availing of a grievance procedure, the Labour Court held as follows in Mr O v An Employer (no. 2) [2005] 16 E.L.R. 132: “The court accepts that in normal circumstances a complainant who seeks to invoke the reasonableness test in furtherance of such a claim must also act reasonably by providing the employer with an opportunity to address what ever grievance they may have. However there is authority for the proposition that this is not a fixed or universally applicable rule and there can be situations in which a failure to give prior formal notice of grievance will not be fatal.”
Also in respect of reasonableness, the Employment Appeals Tribunal in An Employee v An Employer (UD1421/2008) held: “In advancing a claim for constructive dismissal an employee is required to show that he or she had no option in the circumstances of her employment other than to terminate his or her employment. In effect the relevant section reverses the burden of proof for an employer set out in section 6(1) of the Act. The notion places a high burden of proof on an employee to demonstrate that he or she acted reasonably and had exhausted all internal procedures formal or otherwise in an attempt to resolve her grievance with his/her employers. The employee would need to demonstrate that the employer’s conduct was so unreasonable as to make the continuation of employment with the particular employer intolerable.”
In Murray v Rockabill Shellfish Ltd [2012] E.L.R. 331, the Employment Appeals Tribunal held at page 333 as follows: “The Tribunal must consider whether because of the employer’s conduct the claimant was entitled to terminate his contract or it was reasonable for him to do so. An employee is entitled to terminate the contract only when the employer is guilty of conduct which amounts to a significant breach going to the root of the contract or shows that the employer no longer intends to be bound by one or more of the essential terms of the contract. In the case of Brady v Newman UD330/1979, the Tribunal stated at pp 9-10: “… an employer is entitled to expect his employee to behave in a manner which would preserve his employer’s reasonable trust and confidence in him so also must the employer behave.”
The contract of employment provides as follows in relation to “grievance procedures”: “[The respondent] recognises the necessity for maintaining harmonious working relations and avoiding internal disputes which might interfere with the normal operation of the company. The following procedures should be followed when dealing with all grievances and disputes. An employee or employees with any problem or grievance shall, in the first instance, approach their manager with a view to having the problem or grievance solved immediately. If the problem or grievance cannot be resolved at manager level, the employee or employees shall request the manager to refer the matter to the Managing Director. The Managing Director shall arrange a meeting with the employee or employees without undue delay. Failing agreement at such a conference the dispute shall be referred to the conciliation machinery of the Labour Relations Commission or any other body as may be appropriate.”
The contract of employment also addresses ‘health, safety and welfare’. This provides: “[The respondent] aim is to do everything in its power to ensure that all employees work in a healthy, safe environment. The Company has appointed the following employees to monitor health, safety and welfare issues within the company: A, B and C.”
Section 8 of the Safety, Health and Welfare at Work Act, 2005 provides wide ranging duties on an employer in relation to health and safety. Given the scope of this provision, it includes the duty that an employee not be subjected to significant overwork for an extended duration of time. It is established that the obligations under section 8 are implied by statute in every contract of employment (see Walshe, J ‘The Terms of Employment Contract” in “Employment Law”, Murphy and Regan Editors, Bloomsbury, 2017.)
In assessing the evidence in this case, there is a conflict whether the complainant availed of the grievance procedure outlined above. The complainant asserts that she did and the respondent submits that this is not the case as no grievance was put in writing and nor was the matter escalated to the Managing Director. I find that the complainant complied with the grievance procedure. I reach this finding for the following reasons. There is no requirement in the procedure that any grievance be reduced to writing. It is clear from the evidence that the complainant raised issues regarding her working environment. I do not believe that the complainant can be criticised for not escalating the matter to the Managing Director, where there was no obvious way for the complainant to do so. The grievance procedure does not state how this should occur.
While there is conflict about what transpired before and after the November 2015 meetings between the complainant and the Dealer Principal, it is clear that the complainant approached the respondent in a very distressed state and attributed this to her work pressures. The complainant states that this event (which she described as a meltdown) followed many earlier complaints she made to the respondent. This is disputed by the respondent. Having considered the evidence, I am inclined to resolve this conflict in favour of the complainant. The complainant paints a picture of a workplace adapting to the recession, with significant staff reductions and changing business patterns (for example more demand for servicing over sales). Given the range of car sale, service and repair services, her narrative is eminently plausible. This is contrasted with the absence of documentary evidence on the part of the respondent. Their evidence was that the volume of sales decreased, but there is nothing to show what the impact of the new franchises was or the on-going after-sales role they retained for a leading car manufacturer. I also note that in this time, key personnel left the respondent business, for example the Service Manager. This corroborates the complainant’s evidence of a significantly changed workplace, with significant additional demands on the complainant.
In assessing whether the complainant is entitled to succeed in a claim of constructive dismissal, the starting point of such assessment is the text message sent by the respondent to the complainant in August 2014. This asked the complainant to be prepared for a higher workload on her return. There followed a period of 15 months where the complainant complained of the additional workload and asked for more staff supports. I accept her evidence in this regard. This came to a head with the “meltdown” in November 2015. The complainant went on one week’s sick leave and learned of the recruitment of additional administrative support. I accept the complainant’s evidence that on her return from sick leave, she was perturbed by the administrative support ceasing and by the outstanding work left for her to catch up on. Given the extent of her distress prior to going on sick leave, I find that this amounts a breach of the implied term of the complainant’s contract of employment of both a safe place to work and of mutual trust and confidence.
The response of the respondent was not sufficient. I acknowledge the contents of the respondent correspondence of the 17th December 2015, the 29th February 2016 and the 7th April 2016. Given the findings I have made above, the respondent knew the issues the complainant sought to be addressed. They were understaffing and overwork. The reaction of the respondent was to ask that the issues be reduced to writing and that the complainant attend an occupational health assessment. There was no actual response to the kernel of the issues raised by the complainant. Applying the test in Berber, and looking at the responses of both employee and employer, I find that the complainant has met the standard for a breach of the implied term of mutual trust and confidence. It follows that the complaint of unfair dismissal is well-founded.
The complainant tendered her resignation on the 21st March 2016 and this took effect on the 21st April 2016. The complainant’s rate of pay was €640.54 gross per week. Her evidence was that she returned to employment in November 2016 and had been in receipt of Illness Benefit in the interim.
Section 7 of the Unfair Dismissals Act, as amended, provides: “7.— (1) Where an employee is dismissed and the dismissal is an unfair dismissal, the employee shall be entitled to redress consisting of whichever of the following the adjudication officer or the Labour Court, as the case may be, considers appropriate having regard to all the circumstances: ... (c) (i) if the employee incurred any financial loss attributable to the dismissal, payment to him by the employer of such compensation in respect of the loss (not exceeding in amount 104 weeks remuneration in respect of the employment from which he was dismissed calculated in accordance with regulations under section 17 of this Act) as is just and equitable having regard to all the circumstances, or (ii) if the employee incurred no such financial loss, payment to the employee by the employer of such compensation (if any, but not exceeding in amount 4 weeks remuneration in respect of the employment from which he was dismissed calculated as aforesaid) as is just and equitable having regard to all the circumstances, ... (2) Without prejudice to the generality of subsection (1) of this section, in determining the amount of compensation payable under that subsection regard shall be had to— (a) the extent (if any) to which the financial loss referred to in that subsection was attributable to an act, omission or conduct by or on behalf of the employer, (b) the extent (if any) to which the said financial loss was attributable to an action, omission or conduct by or on behalf of the employee, (c) the measures (if any) adopted by the employee or, as the case may be, his failure to adopt measures, to mitigate the loss aforesaid, (d) the extent (if any) of the compliance or failure to comply by the employer, in relation to the employee, with the procedure referred to in subsection (1) of section 14 of this Act or with the provisions of any code of practice relating to procedures regarding dismissal approved of by the Minister, (e) the extent (if any) of the compliance or failure to comply by the employer, in relation to the employee, with the said section 14, and (f) the extent (if any) to which the conduct of the employee (whether by act or omission) contributed to the dismissal. (2A) In calculating financial loss for the purposes of subsection (1), payments to the employee — (a) under the Social Welfare Acts, 1981 to 1993, in respect of any period following the dismissal concerned, or (b) under the Income Tax Acts arising by reason of the dismissal, shall be disregarded. (3) In this section— “financial loss”, in relation to the dismissal of an employee, includes any actual loss and any estimated prospective loss of income attributable to the dismissal and the value of any loss or diminution, attributable to the dismissal, of the rights of the employee under the Redundancy Payments Acts, 1967 to 1973, or in relation to superannuation; “remuneration” includes allowances in the nature of pay and benefits in lieu of or in addition to pay.”
The extent of the complainant’s financial loss is from April to November 2016, upon which time the complainant obtained alternative employment. She received a contribution-based social welfare payment in the interim. The amended Unfair Dismissals Act is clear that such social welfare support should not be taken into account in assessing ‘financial loss’. The question, therefore, is whether the loss incurred by the complainant is attributable to the employer, as envisaged by section 7(2)(a) of the Act. Given the findings I have made above regarding the breaches by the respondent of the implied term of mutual trust and confidence and the term implied by statute of a safe place of work, I find that the loss of income between April and November 2016 is attributable to the actions of the respondent. The complainant is, therefore, entitled to recover for financial loss arising in this period.
For the sake of clarity, it is not necessary to hear psychiatric evidence to assess whether the loss incurred by the employee is attributable to the employer. Even had I heard such evidence, it is certainly not my role to determine whether a psychiatric injury has occurred.
In calculating the amount of redress, I note that the period of financial loss arises over 28 weeks. The amount of redress owed pursuant to the Unfair Dismissals Act is, therefore, €17,935. |
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.
CA-00005728-001 I find that the complaint made pursuant to the Unfair Dismissals Act is well-founded and the respondent shall pay to the complainant redress of €17,935. |
Dated: 27.10.2017
Workplace Relations Commission Adjudication Officer: Kevin Baneham
Key Words:
Unfair Dismissals Act Implied term of mutual trust and confidence Term implied by statute in relation to safety, health and welfare at work Berber v Dunnes Stores [2009] 20 E.L.R. 61 Financial loss attributable to the employer Illness Benefit |