Iceland Frozen Foods Ltd v Jones

JurisdictionUK Non-devolved
CourtEmployment Appeal Tribunal
Year1982
Date1982
[EMPLOYMENT APPEAL TRIBUNAL] ICELAND FROZEN FOODS LTD. v. JONES 1982 July 28, 29 Browne-Wilkinson J., Mr. J. P. Bell and Mrs. M. Boyle

Employment - Unfair dismissal - Reasonableness of dismissal - Misconduct - Foreman's failure to secure warehouse - Dismissal - Finding that employer unreasonable in treating conduct as ground for dismissal - Test of whether employer acting reasonably - Employment Protection (Consolidation) Act 1978 (c. 44), s. 57 (3) (as amended by Employment Act 1980 (c. 42), s. 6)

The employee, a night shift foreman, was dismissed by the employers for failing to operate the security system at the employers' premises and for taking part in an attempt to deceive the employers into making extra overtime payments. On his complaint to an industrial tribunal that his dismissal was unfair, the tribunal rejected the employers' submission that when applying section 57 (3) of the Employment Protection (Consolidation) Act 1978, as amended, F1 a tribunal should not find the dismissal unfair unless the decision to dismiss was so unreasonable that no reasonable employer would have decided to take that course. They took the view that the correct test was whether in their opinion the employers had acted reasonably, and they found that the employee's misconduct was not sufficiently serious to warrant dismissal. They accordingly held that the employers had acted unreasonably in dismissing him, within the meaning of section 57 (3), and that the dismissal was unfair.

On the employers' appeal: —

Held, allowing the appeal, that the correct approach for an industrial tribunal, when applying section 57 (3) of the Act of 1978, was to consider whether the employers' decision to dismiss fell within the band of reasonable responses to the employee's conduct which a reasonable employer could adopt; that the industrial tribunal had erred in law in rejecting that approach; and that, accordingly, the case would be remitted to a different industrial tribunal for reconsideration.

N. C. Watling & Co. Ltd. v. Richardson [1978] I.C.R. 1049, E.A.T. followed.

Jowett v. Earl of Bradford (No. 2) [1978] I.C.R. 431, E.A.T. not followed.

Per curiam. Although the statement of principle in Vickers Ltd. v. Smith [1977] I.R.L.R. 11, is entirely accurate in law, for the reasons given in N. C. Watling & Co. Ltd. v. Richardson [1978] I.C.R. 1049, we think industrial tribunals would do well not to direct themselves by reference to it (post, p. 25B).

The following cases have referred to in the judgment:

British Leyland U.K. Ltd. v. Swift [1981] I.R.L.R. 91, C.A.

Jowett v. Earl of Bradford (No. 2) [1978] I.C.R. 431, E.A.T.

Rolls-Royce Ltd. v. Walpole [1980] I.R.L.R. 343, E.A.T.

Vickers Ltd. v. Smith [1977] I.R.L.R. 11, E.A.T.

Watling (N. C.) & Co. Ltd. v. Richardson [1978] I.C.R. 1049, E.A.T.

No additional cases were cited in argument.

Appeal from an industrial tribunal sitting at Shrewsbury.

The employers, Iceland Frozen Foods Ltd., appealed from a decision of the industrial tribunal on November 13, 1981, that the employee, John Graham Jones, had been unfairly dismissed, on the ground, inter alia, that the industrial tribunal had erred in law in their construction of section 57 (3) of the Employment Protection (Consolidation) Act 1978.

The facts are stated in the judgment.

J. Tracy Forster for the employers.

D. J. Hale for the employee.

Browne-Wilkinson J. delivered the following judgment of the appeal tribunal. This is an appeal from a decision of an industrial tribunal which held that Mr. Jones, the employee, had been unfairly dismissed by his employers, Iceland Frozen Foods Ltd. He was employed by the company from April 13, 1980, until July 2, 1981, when he was summarily dismissed by the warehouse distribution manager, Mr. Boyland. The employers carry on business in retail food distribution selling frozen foods. They operate 43 shops all of which are supplied from a cold store at the Deeside Industrial Estate at Queensferry. Adjacent to that store are the administrative offices of the company. The store and the administrative offices do not intercommunicate. At the time of his dismissal the employee was the night shift foreman at the warehouse. The company is of fair size with about 450 employees altogether.

The circumstances of the dismissal were these. The night shift operated a 40 hour week. If, on any night, they had finished their work they knocked off early; if they had not finished their work by the end of the shift they continued to work thereafter. Only if in any week they had in all worked more than 40 hours was overtime paid. They were also working under a scheme which provided a bonus in the event that errors in the loading of the lorries were avoided. The ordinary night shift hours were from 10 p.m. until 6 a.m. There was a break between the last day shift and the commencement of the night shift, and also a break between the end of the night shift at 6 a.m. and the commencement of ordinary work some hour and a half later. It was part of the employee's duties at the start of the night shift to unlock the warehouse and disconnect the electronic security system covering both the warehouse and the office. At the end of the night shift, it was his duty to lock up the warehouse (and the office accommodation if it were open) and to re-activate the security system which was itself linked to a central security system run by an independent contractor.

The events in question took place on the night of July 1 and 2, 1981. When the day shift arrived on the morning of July 2 it was found that the office accommodation was unlocked and although the warehouse was locked the electronic security system had not been re-activated. Mr. Boyland was present when that was discovered. Mr. Boyland then looked into the matter with the security company and confirmed that the electronic alarm had not been re-activated. He drew the inference, correctly, that the employee could not have locked the administrative block or re-activated the alarm before leaving the premises after the conclusion of the night shift. He also discovered that the night shift had worked for the full eight hours on the night of July 1 and 2 but the number of items that had been loaded was substantially smaller that the normal average for a full eight hour shift; indeed, it was approximately 20 per cent. less than on the previous night. He reached the conclusion that there had been a deliberate “go-slow” by the night shift workers with the objective of earning overtime for that week. He thought that the employee, as foreman, must be a party to that deliberate go-slow.

As a result, Mr. Boyland summoned the employee to an interview before the start of the night shift on the evening of July 2. The meeting took place at 6.30 p.m. and lasted for about 10 minutes. The industrial tribunal were unable to make express findings as to what took place at that meeting save in certain respects which we will mention hereafter. At the conclusion of the meeting Mr. Boyland summarily dismissed the employee.

The...

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