Cases
Catholic University School -v- Dooley & Anor
[2010] IEHC 496
Dunne J.
“The key issue to be determined in these proceedings is whether the determination of the Labour Court made in April of 2009, in respect of the claimants respective claims to the effect that the claimants are entitled to a contract on terms and conditions pro rata with that of his comparator is correct. The Rights Commissioner in her decision on the claimants claim under the Part Time Work legislation, found that the claimant, Mr. Dooley, as a part time worker was treated less favourably than a comparable full time worker. She found that the respondent employer was in breach of s. 9 of the Part Time Work Act, and required the respondent to ensure that the claimant’s pay (i.e. salary scale and incremental progression, payment of qualification allowances and all other conditions of employment) were no less favourable (on a pro rata basis where appropriate) than those of the whole time comparator from that date. She found that in relation to the incremental salary scale the respondent was required to operate the same type of salary scale for the claimant as that for the comparator including incremental progression. In relation to the claimant’s access to the Department of Education’s superannuation scheme, she found that the respondent was to ensure that the claimant was to become a member of the scheme and to make the same employee contributions as the comparator. It is that decision that was subject to minor variations affirmed by the Labour Court. There was also a claim under the Fixed Term Work Act, but for the purpose to these proceedings I do not think it is necessary to deal with that aspect of the matter to any extent.
Three principal issues arose before the Labour Court and indeed on appeal to this Court. The first issue is whether or not the claimants have chosen the appropriate comparator. The second issue relates to whether or not the Directive 97/81/EC has been properly transposed into national law. The final issue relates to the defence of objective justification. I now propose to deal with these issues.
The Appropriate Comparator
There is no dispute between the parties that a claimant is entitled to choose their own comparator. The question is whether the comparators chosen by the claimants are appropriate. The claimants have sought to compare themselves with a permanent teacher on an incremental scale whose salary is paid by the Department of Education. It is contended on behalf of the school that this is not a correct or appropriate comparator. The school contends that the appropriate comparator is a privately paid teacher employed by the respondent directly. There are a number of such teachers employed by the school. The first point made on behalf of the school is that the chosen comparator has to be in the same type of employment contract or employment relationship. There was no issue as to the teaching ability of either of the claimants and that in that regard each of the claimants presents identically by comparison to their chosen comparators. However, the principal point made on behalf of the school is that there is a difference between the contractual arrangements of the claimants and their chosen comparators and that this is a relevant feature. The school contends that the appropriate comparator should be a full time privately paid teacher. Reference was made in that regard to two members of staff employed by the school who are permanent full time privately paid teachers. It was submitted that the claimants had been treated equally and no less favourable than those employees or any other privately paid teacher paid by the school.
Although it was accepted by the school that the claimants are entitled to choose their comparator, it was submitted that they could not be disingenuous in their choice of comparator. The context in which the comparator was employed had to be considered. Indeed it was suggested that it might be appropriate to consider other teachers in a similar employment relationship i.e. someone from within the private sector not the State sector. Reference was made to the decision of the Supreme Court in the case of National University of Ireland v. Ahearn [2005] 2 IR 577. That was a case that considered the provisions of s. 2(3) of the Anti-Discrimination (Equal Pay) Act 1974. An employee under the provisions of that legislation was entitled to compare themselves to another employee in seeking to establish that they were being paid unequal pay for like work. McCracken J. at p. 583 of the judgment in that case commented:-
“The question at issue here is whether the differing rates of remuneration are based on the grounds of sex or whether there are other reasons for the differential. This involves a different approach to the position of the comparators, and in particular of the context in which they were employed. I accept the arguments on behalf of the applicant that for this purpose the Labour Court ought to have looked at the position of the comparators, not only in isolation, but also in the context of the other persons in the same grade who had not been chosen as comparators, namely the remaining switchboard operators.”
Therefore it was submitted that one had to consider the context in which the chosen comparator was employed not in isolation but also in the context of other teachers on the staff who where not chosen as comparators namely, the other privately paid teachers. In this context, particular emphasis was placed by the school on the definition of employer within the meaning of the Protection of Employees (Part Time Work) Act 2001, which is set out above and in particular that part of the definition which states “the person who under a contract from his employment referred to in para. (b) of the definition of contract of employment” is liable to pay the wages of the individual concerned in respect of the work or service concerned shall be deemed to be the individual’s employer”. It was suggested therefore that having regard to the definition of employer in the 2001 Act as set out above that the chosen comparator was not even employed by the same employer as the claimants. In emphasising this particular point, it was noted that the school has no hand, act or part in the negotiations between the teachers or their union and the Department. Criticism of the decision of the Labour Court was based on the fact that the Labour Court allowed the claimants to compare their contract with the school with the contract agreed between two separate parties, namely, the chosen comparators and the Department of Education and Science. Reference in this context was made to a decision of the Employment Appeals Tribunal (Sullivan v Department of Education 1998 E.L.R. 217) in relation to a claim in respect of an alleged unlawful deduction within the meaning of the Payment of Wages Act 1991. It was found in the particular case that there were sufficiently close ties and control exercised by the Department of Education in relation to individual teachers and that therefore the Department was the employer for the purpose of the Payment of Wages Act 1991. On that basis it was argued that the Department could be deemed to be the employer in this context. It was pointed out that the Department can determine the conditions applicable to State paid teachers without any input from the school.
Reference was also made to the decision of the High Court in the case of Wilton v. Irish Steel [1999] E.L.R. 1. That was an equal pay claim. The plaintiff in that case took over the duties of her chosen comparator at a salary of £11,000. Her chosen comparator, Mr. Clarke, had been earning £14,000 when he was in the defendant’s employ. The plaintiff claimed that she was entitled to the same pay on the grounds that she was doing like work and that the only distinction between them was one of sex. An equality officer recommended that the plaintiff was not entitled to the same rate of pay as her comparator because the different rates paid could be justified on grounds other than sex. That recommendation was affirmed by the Labour Court. The equality officer had in the course of reaching a decision made detailed comparison with another individual who had taken on responsibilities similar to those of the plaintiff at the same time and was also paid less than the comparator. It was held by O’Sullivan J. in dismissing the appeal that the Labour Court had relied on the recommendations of the equality officer and had found that there were grounds other than sex which justified the difference in pay which could be “adequately identified”. It was also held that the plaintiff was entitled to choose her comparator and having done so, the equality officer was obliged to make a comparison with that person. Accordingly, if the recommendation showed that the equality officer had not compared the plaintiff with her comparator but with another, then an error of law would have occurred and the matter would have to be sent back to the equality officer. It is clear from that decision, as both parties accept, that a claimant is entitled to choose their own comparator but it is also possible in appropriate cases to conduct an analysis not only of the chosen comparator but also of others not chosen by a claimant as the comparator.
A further authority opened in relation to this particular issue was the case of Minister for Finance v. Una McArdle [2007] 18 E.L.R. 165 a decision of the High Court (Laffoy J.). That case related to a person employed as a lab technician with the State Laboratory on a fixed term contract of one year. It was found by Laffoy J. in refusing the reliefs sought by the Minister for Finance that “the defendant was treated less favourably than her chosen comparator in relation to eligibility for the vacancy and that the difference in treatment was not objectively justified. The defendant was entitled to rely on an established civil servant as a comparator as well as the same conditions of employment as the comparator including pension entitlements and access to a career break but excluding tenure as an established Civil servant.”
In the course of her judgment in that case, Laffoy J. at p. 8 of 14 stated:-
“The Labour Court summarised the combined effect of sub-ss. (1) and (2) of s. 5 as being that a comparable permanent employee for the purposes of the Act the permanent employee employed by the same employer as the complainant, who is engaged in like work with the complainant. The Labour Court followed the decision of this Court (O’Sullivan J.) in Wilton v. Steel Company of Ireland [1999] E.L.R. 1, where it was held that, for the purposes of the Anti Discrimination (Pay) Act, 1974, an employee is entitled to choose his or her comparator. Apropos of the position of the defendant, the Labour Court stated that it was accepted that she was engaged at all material times in doing the same job as permanent civil servants who were designated as established, and it was also accepted that there were no other civil servants employed by the plaintiff engaged in like work with her, who were designated unestablished. The Labour Court found that the defendant and a number of established civil servants performed the same work under the same or similar conditions and each was interchangeable with the other in relation to work. Therefore, the Labour Court found that the established civil servants were comparable permanent employees in relation to the defendant within the meaning of s. 5. On that basis, the Labour Court concluded that the defendant, as a fixed-term employee, was entitled to the same conditions of employment as her nominated comparators who were established civil servants (except, of course, in relation to the duration of her contract).
In this Court, counsel for the plaintiff did not dispute that the defendant was entitled to choose her comparator, but it was submitted that she had to choose a comparator for the purposes of the Act. He submitted that the difference in treatment between the defendant and her chosen comparator of which she complained was not due to her fixed-term status, but to her status as an unestablished civil servant. It was submitted that the discrimination of which she complained was not within the ambit of the Act. . . .
Counsel for the defendant submitted that the Labour Court was correct in holding that she was entitled to select as a comparator an established civil servant working in the State Laboratory. In relation to the application of s. 5 to her, para. (1)(a) was complied with, in that she and her comparator had a common employer and the Labour Court had found as a fact, and there was no appeal against the finding, that she complied with para. (a) of subs. (2). It was submitted that in the Act comparability is defined not by reference to status but by reference to having the same employer and being engaged in like work. Therefore, it was submitted that the plaintiff’s contention that the Labour Court fell into error was misconceived.
I can see no error of law in the conclusion of the Labour Court that an established civil servant in the State Laboratory, who was engaged in like work with the defendant was a ‘comparable permanent employee’ for the purposes of s. 6 because, on the basis of the unchallenged findings of fact made by the Labour Court, such person fulfilled the criteria set out in s. 5 for a comparable permanent employee vis-à-vis the defendant as a fixed-term employee.”
Thus it was argued on behalf of the school relying on the above decision that the chosen comparator does not have the same employer. Indeed it was added that in the case of Sullivan v. The Department of Education referred to above, it is of significance that it was the department and not the relevant board of management that was the defendant in those proceedings. Thus a significant part of the school’s arguments are based on the contention that the appropriate employer in this case is the Department and not the school. In support of these arguments reference was also made to two decisions of Rights Commissioners in the cases of Mannion and Jacques and Keating v. Scoil Áine and the case of Noone v. St. Mary’s Holy Faith Secondary School Killester. In the first of those cases the Rights Commissioner found that there were two separate contracts in existence, one between the school and the claimant funded by the Department and the other which was privately funded between the school and each of the claimants outside the control of the funding of the Department. In other words the Rights Commissioner had regard to the different funding arrangements and contractual arrangements between the claimants and the school. In the second of those cases, that of Imelda Noone, the Rights Commissioner rejected a claim for pro rata pay and conditions in respect of the claimant’s Department paid incremental colleagues and therefore found that the claimant was not comparable to the Departmental paid incremental teachers on the respondent staff.
In support of their arguments on this point, reference was made on behalf of the school to a number of factual matters which it was contended showed significant differences between the claimants and their chosen comparators.
……
Decision
The Appropriate Comparator
The arguments on this point centred on the decision in the case of O’Keeffe v. Hickey, the provisions of s. 24 of the Education Act 1998 and the provisions of s. 3(1) of the Protection of Employees (Part Time Work) Act 2001 and s. 2(1) of the Protection of Employees (Fixed Term Work) Act 2003, which define employers respectively as follows:-
“Employer” means, in relation to an employee, the person with whom the employee has entered into or for whom the employee works under (or, where the employment is ceased, entered into or worked under) a contract of employment subject to the qualification that the person who under a contract of employment referred to in paragraph (b) of the definition of “contract of employment” is liable to pay the wages of the individual concerned in respect of the work or service concerned shall be deemed to be the individuals employer” and
“Employer” means in relation to an employee, the person with whom the employee has entered into or for whom the employee works under (or where the employee has ceased, entered into or worked under), a contract of employment.”
It can be seen that there is a difference between the definitions of employer contained in the two Acts. Essentially however, an employer is the person with whom the employee has entered into or for whom the employee works under a contract of employment.
The provisions of s. 24 of the Act apply to schools which are fully State funded and schools which are private schools and partly funded by the State. Section 24(1) provides for the appointment of teachers and staff of a school by the Board of Management. The provisions of s. 24 go on to deal with the number and qualifications of teachers and staff of a school to be paid from monies provided by the Oireachtas and sets out various matters in that regard. It is clear from the terms of the statute that the terms and conditions of employment and other staff of a school appointed by a Board and who are to be paid from monies provided by the Oireachtas, shall be determined by the Minister with the concurrence of the Minister for Finance. Section 24(6) provides as follows:-
“Where all or part of the remuneration and superannuation of teachers and other staff of a school is paid or is to be paid from monies provided by the Oireachtas, such remuneration or superannuation shall be determined from time to time by the Minister, with the concurrence of the Minister for Finance.”
There are some observations which I think it is necessary to make in relation to those provisions. The first point to note as I have already said is that they apply to all schools, private and State schools. It is implicit, for example, in s. 24(6) that not all of the teachers in a school may be paid from monies provided by the Oireachtas. It is also clear that the terms and conditions of employment and the remuneration and superannuation of teachers paid from monies provided by the Oireachtas are matters which will be determined by the Minister. In other words, the Minister determines the terms and conditions of employment of State paid teachers and the Minister determines the remuneration and superannuation of the State paid teachers. I think it is also clear from the provisions of s. 24 that the employer of teachers is the Board of Management. It is the Board of Management of the school that appoints teachers. It is also clear from the provisions of the Act, and in particular s. 24(2), that the numbers and qualifications of teachers paid from monies provided by the Oireachtas is subject to the approval of the Minister. Nevertheless, all teachers are appointed by the Board of Management.
Counsel on behalf of the claimants in this case laid particular emphasis on the decision in the case of O’Keeffe v. Hickey as referred to previously. I have already referred to a number of passages from that judgment which deal with the issue of vicarious liability and which outlined and described in some detail the nature of the relationship between the Minister, teachers and a school. It is undeniably a feature of this case that the contractual arrangements between the claimants and the school, and the chosen comparators and the school are different. The State through the provisions of s. 24 controls key aspects of the contract of employment, namely terms and conditions and remuneration and superannuation of State funded teachers. The school has no input into the contract of employment of a State funded teacher and has no control over the significant terms of such contract of employment. On the other hand, the school does have control over those aspects of the contract of employment as between the claimants and the school. If the school in this case had control over the fixing of the terms and conditions of employment of all the teachers in the school, including the determination of the remuneration and superannuation, there could be no objection to the chosen comparators.
……………..
I have considered the authorities that were opened to me in the course of this hearing. It is interesting to note in the case of Sullivan v.Department of Education, a case before the Employment Appeals Tribunal, that there the respondent in those proceedings was the Department of Education although the claimant was employed by a school. The issue in that case related to the recognition of a degree allowance and she was a Department paid teacher. None of the cases opened to me in the course of the hearing involve a situation where the contract of employment between the employer and the employee is one in which the employer in respect of the chosen comparators has no hand, act or part in fixing important terms of the contract i.e. terms and conditions, including remuneration and superannuation.
In reaching its conclusions on this issue, the Labour Court found:-
“In the instant case, there is no dispute as to like work as between the claimant and his chosen comparator. On the above criteria as set out by Laffoy J., in the McArdle case, although there are some full-time privately funded teachers in the school, the claimant is entitled to choose a full-time department funded teacher as a comparator.”
As can be seen from that particular passage, the Labour Court referred to the decision in the case of Minister for Finance v. McArdle [2007] 18 E.L.R. 165. I now want to look at that decision in more detail. The facts of that case were that the defendant commenced employment in the State laboratory in her capacity as a laboratory technician in March, 2000 on a fixed contract for one year. The purpose of her employment was to assist in the analysis of samples of drivers suspected to have been under the influence of drugs. Her contract was renewed on an annual basis thereafter until 21st March, 2004. at that point, as was accepted before a Rights Commissioner, her contract was not managed appropriately. It was not until May 31st, 2005, that she was furnished with the renewed contract which, in the language of the Labour Court, purported to be in respect of the period from March 22, 2004 until March, 21, 2005. As was recorded in the determination of the Labour Court the plaintiff (the Minister for Finance) accepted that the contract furnished on 21st May, 2004, did not comply with the requirements of s. 8 of the Act and that the defendant became entitled to a contract of indefinite duration with effect from 22nd March, 2004. It appears from the decision that the defendant was governed by the same terms of employment as other permanent employees in respect of “annual leave, sick leave, pay, hours of attendance, etc”. The matters at issue, and which were the subject of complaint related to pension, access to career breaks and tenure.
Having set out the various submissions in relation to the entitlement of the employee to choose his or her comparator, it was noted in the course of the judgment as follows:-
“The Labour Court stated that it was accepted that she was engaged at all material times in doing the same job as permanent civil servants who were designated as established, and it was also accepted that there were no other civil servants employed by the plaintiff engaged in like work with her, who were designated unestablished. The Labour Court found that the defendant and a number of established civil servants performed the same work under the same or similar conditions and each was interchangeable with the other in relation to work. Therefore, the Labour Court found that the established civil servants were comparable, permanent employees in relation to the defendant within the meaning of section 5. On that basis, the Labour Court concluded that the defendant, as a fixed term employee was entitled to the same conditions of employment as her nominated comparators who were established civil servants (except, of course, in relation to the duration of her contract).
In this Court counsel for the plaintiff did not dispute that the defendant was entitled to choose her comparator, but it was submitted that she had to choose a comparator for the purposes of the Act. He submitted that the difference in treatment between the defendant and her chosen comparator of which she complained was not due to her fixed term status, but to her status as an unestablished civil servant. It was submitted that the discrimination of which she complained was not within the ambit of the Act.
…
Counsel for the defendant submitted that the Labour Court was correct in holding that she was entitled to select as a comparator an established civil servant working the State Laboratory. In relation to the application of s. 5 to her, para. 1(a) was complied with, in that she and her comparator had a common employer and the Labour Court had found as a fact, and there was no appeal against the finding, that she complied with para. (a) of subs. (2). It was submitted that in the Act comparability is defined not by reference to status but by reference to having the same employer and being engaged in like work. Therefore, it was submitted that the plaintiff’s contention that the Labour Court fell into error was misconceived.”
In relation to those submissions, Laffoy J. went on to state:-
“I can see no error of law in the conclusion of the Labour Court that an established civil servant in the State Laboratory, who was engaged in like work with the defendant was a “comparable, permanent employee” for the purposes of s. 6 because, on the basis of the unchallenged findings of fact made by the Labour Court, such person fulfilled the criteria set out in s. 5 for a comparable permanent employee vis-a-vis the defendant as a fixed term employee.”
The provisions in s. 7 of the Protection of Employees (Part Time Work) Act 2001, mirror the provisions of s. 5 of the Protection of Employees (Fixed Term Work) Act 2003. Accordingly, an employee is a comparable permanent employee if the employee and the relevant part-time employee are employed by the same employer and one of the conditions referred to in subs (3) of s. 7 is satisfied in respect of those employees namely,
“(a) Both of the employees concerned perform the same work under the same or similar conditions or each is interchangeable with the other in relation to the work,
(b) The work performed by one of the employees concerned is of the same or a similar nature to that performed by the other and any differences between the work performed and/or the conditions under which it is performed by each, either are of small importance in relation to the work of whole or occur with such irregularity as not to be significant, and
(c) The work performed by the relevant part-time employee is equal or greater in value or the work performed by the other employee concerned, having regard to such matters as skill, physical or mental requirements, responsibility and working conditions.”
There is no doubt that the school is the employer of the claimants. Bearing in mind the decision in O’Keeffe v Hickey, it appears that the school is also the employer of the chosen comparators for the purpose of issues of vicarious liability. That decision highlights the unusual tripartite relationship between the Department funded teacher, the Department and the school. However, the provisions of s. 24 of the Education Act 1998 are also of importance. S. 24 (3) makes it clear that the task of appointing teachers funded by the State falls on the board of management of a school. S. 24 (5) of the Act makes it clear that the terms and conditions of teachers funded by the State shall be determined by the Minister, with the concurrence of the Minister for Finance.
In a private school there will be a cohort of Department funded teachers and usually there will also be a cohort of privately paid teachers. The paymaster for each cohort is different. In the case of O’Keeffe v Hickey to which I have referred above, the unusual nature of the tri-partite agreement was described; the Board of management was found to be the employer of the teacher concerned in that case which involved the question of vicarious liability although the teacher was paid by the Department. There is no tri-partite arrangement in the case of the claimants. I have already referred to the case of Sullivan v Department of Education, a decision of the Employment Appeals Tribunal. It was observed in the course of argument in that case which involved a teacher, that the Department, as the paymaster of the teacher, was the respondent. It was argued by the Department in that case that the Department was not the employer but the “paying agent”. The tribunal in that case stated in relation to that argument:
“The tribunal does not accept that the Department is not the employer. The board of management or other managing authority of a school may well have a role in the day-to-day running of the school and indeed in engaging teachers, interviewing etc. The reality is that such boards of management or other managing authority in relation to state schools have little or no role when it comes to the question of remuneration of teachers, which is a most important element and aspect of the relationship between teachers and their employers. The tribunal considers that the role of the Department of education goes beyond that of “paying agent”. The Department is empowered to negotiate teachers salaries and qualification allowances and makes policy decisions in relation to the type of degree to which Ms Sullivan and other teachers have studied for in relation to the starters of such degree. As regards qualification allowances. The Department has a role in the whole area of maintaining appropriate pupil/teacher ratio in directly and regulates the number of teachers in any particular school as in the scheme of redeployment. If ultimately redeployment in the case of any particular teacher it cannot be settled by agreement, the Minister is empowered to withhold the grant of a sum of money which would go towards paying that particular teacher’s salary and effectively has the power to deprive a particular teacher of his or her salary.
In all of those circumstances, the tribunal does not accept that the Department is simply a “paying agent”, which simply pays out the money at the request of the State School concerned. In relation to the question of the hours worked for which a teacher qualifies for his or her monthly salary, the school principal has a role in terms of certifying the hours worked. However in respect of all teachers, when it comes to the question of qualification allowances, these aspects of the teacher’s salary involve no role for the school and are something which go to the teachers particular qualification and are a constant. In fact the school principal describes him or herself as “employer” on the monthly certification form at the form is not conclusive.”
The decision in the case of Sullivan v Department of Education highlights the different and complicated employment arrangements as between Department funded teachers and privately funded teachers. One wonders what relief, if any, could have been obtained by the claimant in the case of Sullivan v Department of Education had she pursued her case against the school concerned as opposed to the Department. It is hard to see how the Tribunal in that case could have come to any other conclusion. The recognition of qualifications and the payment of a qualification allowance was always a matter to be dealt with by the Department of Education, because it set the criteria for the payment of that allowance. That case provides one small example of the different contractual arrangements that exist between Department funded teachers and the school in which they are employed and privately funded teachers and the school in which they are employed.
Although the chosen comparators appear to come within the definition of comparable full-time employees as defined in the legislation, I have come to the conclusion that because of the fact that the Minister determines the terms and conditions of the Department funded teacher and the school determines the terms and conditions of the privately paid teachers, the Labour Court has fallen into error in finding that the claimants were entitled to choose a full time Department funded teacher as a comparator. The school has no hand, act or part in determining the salary and other terms and conditions of the Department funded teacher. In determining the employer for the purpose of the legislation in relation to agency workers, the legislation expressly provides that the party paying the worker is, for the purposes of the legislation, the employer. I think the school is in an analogous position. I do not accept that the chosen comparators have the same type of employment contract or relationship as the claimants with the school. To that extent, it seems to me that the Department has to be viewed as the employer of the chosen comparators for the purpose of the legislation.
Objective justification
I want to make some very brief observations on this issue. The school in this case has argued that the different contractual and/or employment status of the chosen comparators as compared to the claimants constitutes objective justification for a less favourable treatment which has occurred as between the claimants and their chosen comparators. The Labour Court in the course of its determination stated that “the objective justification relied upon by the school appears to be that the School cannot afford to pay the cost associated with affording the claimants equal treatment.” There is an abundance of authority to which reference has already been made to the effect that the issue of cost cannot justify unequal treatment. I have already referred to the decision in Hill & Stapleton v. Revenue Commissioners & Department of Finance and to the decision of the ECJ in Jorgensen above. It seems to me to be very clear and obvious that the purpose of the Directive and the legislation transposing the Directive into Irish law would be defeated if cost alone was accepted as a defence because as pointed out by the Labour Court “in every case in which it is necessary to implement principles of equality there is a cost to the employer”.
As I have already mentioned, part of the argument in this case centred on the omission of the word “solely” from the legislation and in particular from the provisions of section 12 and section 7 referred to above. An argument was made on the behalf of the school to the effect that the omission of that word meant that the directors had been improperly transposed into Irish law. I do not accept that argument on the part of the school and I accept the arguments of counsel on behalf of the claimants in that regard. It is important to remember the purpose of the framework agreement, which has been put into effect by the directive and implemented by the legislation referred to in these proceedings. If one considers Council directive 1999/74/EC in relation to fixed term work it will be seen that its purpose is stated to be to:
“(a) improve the quality of fixed term work by ensuring the application of the principle of non-discrimination;
(b) establish a framework to prevent abuse arising from the use of successive fixed term employment contracts or relationships.”
In the part time work directive it was stated as follows:
“Whereas the signatory parties wished to conclude a framework agreement on part-time work setting out the general principles and minimum requirements of part-time working; whereas they have demonstrated their desire to establish a general framework for eliminating discrimination against part-time workers and to group and to contribute to developing the potential for part-time work on a basis which is acceptable for employers and workers alike.”
In other words, the purpose of the Directives and the legislation implementing the Directives is to prevent discrimination against workers by reason of their status as fixed term workers or part time workers.
I accept that the test to be applied in considering a defence of objective justification is that set out in the case of Del Cerro Alonso referred to above, namely, that the unequal treatment responds to a genuine need; is appropriate for achieving the objective pursued and is necessary for that purpose. However, in the light of the finding as to the chosen comparator, it is not necessary to further address the arguments in this area.
Conclusion
As I have found that the Labour Court fell into error in relation to the selection of the chosen comparators, I will hear further from the parties as to the effect of that finding.”
FULL RECOMMENDATION
FTC/14/13
DETERMINATIONNO.FTD164
(R-135121/135122/135123-FT-13/SR)
INDUSTRIAL RELATIONS ACTS, 1946 TO 1990
SECTION 15(1), PROTECTION OF EMPLOYEES (FIXED-TERM WORK) ACT, 2003
DUBLIN INSTITUTE OF TECHNOLOGY v W.
BACKGROUND:
2. The Worker appealed the Rights Commissioner’s Decision to the Labour Court. A Labour Court hearing took place on the 15th March, 2016, the 11th April, 2016 and the 12th of April, 2016. The following is the Labour Court’s Decision:-
DETERMINATION:
This is an appeal by James W. against the decision of a Rights Commissioner in his claim against his former employer, Dublin Institute of Technology, under the Protection of Employees (Fixed-Term Work) Act 2003 (hereafter the Act) .
In this Determination the parties are referred to as they were at first instance. Hence. Mr W. is referred to as the Complainant and Dublin Institute of Technology is referred to as the Respondent.
The claim relates to an alleged contravention by the Respondent of section 13(1)(d) of the Act which, in effect, classifies as unlawful penalisation the dismissal of a fixed terms worker where the dismissal is wholly or partly for or connected with the purpose of the avoidance of a fixed-term contract being deemed to be a contract of indefinite duration under s.9(3) of the Act.
History
At first instance the Rights Commissioner held that a complaint pursuant to s.13 of the Act was not properly before him. That decision arose in circumstances in which the originating form completed by the Complainant in initiating the claim did not indicate expressly that reliance was being placed on that section. The Complainant appealed against that decision.
A preliminary hearing was held on 1stMay 2014 for the purpose of deciding whether the Rights Commissioner was correct in declining jurisdiction to hear that aspect of the claim. In Determination FTD149 the Court held that the originating form should be amended so as to expressly claim redress for a contravention of s.13(1)(d) of the Act. The Court also gave certain directions regarding the exchange of documents and details of the evidence to be relied upon by the Complainant so as to prevent any possible prejudice to the Respondent arising from this amendment. Issues subsequently arose concerning the extent of compliance with this direction which delayed the substantive hearing of the appeal.
The appeal subsequently came on for hearing on 15thMarch 2016. Further hearings were held on 11thand 12thApril 2016.
Background
The Complainant was employed by the Respondent as a Business Development Manager in what is known as the Digital Media Centre (DMC) attached to the Respondent Institute. He worked on a series of fixed-term contracts commencing in or about April 2009. His employment terminated on 31stDecember 2012, when his final fixed term contract expired without being renewed.
The Complainant worked for the Respondent continuously during this period pursuant to six fixed term contracts as follows: –
Start Finish Duration
1stApril 2009 30thSeptember 2009 6 Months
1stOctober 2009 31stMarch 2009 6 Months
1stApril 2010 30thSeptember 2010 6 Months
1stOctober 2010 31stMarch 2011 6 Months
1stApril 2011 30thSeptember 2011 6 Months
1stOctober 2011 31stDecember 2012 15 Months
The aggregate duration of the Complainant’s employment with the Respondent was three years and nine months.
The Dispute
The Complainant contends that the non-renewal of his final contract after it expired on 31stDecember 2012 constituted a dismissal. He further contends that the Respondent was actuated in dismissing him by the realisation that any further renewal of his contract would extend the aggregate duration of his continuous fixed term employment beyond four years, thus transmuting his contract to one of indefinite duration by operation of s.9(3) of the Act. In advancing that case the Complainant contended that at the time his employment was terminated the DMC had sufficient work in hand and the financial resources available to cover its continued operation up to early 2014. The Complainant further contended that in dismissing him the Respondent was acting in pursuance of a policy of not renewing fixed term employment where the renewal could attract the operation of s.9(3) of the Act.
The Respondent accepted that the non-renewal of the Complainant’s fixed term contract constituted a dismissal for the purpose of the statutory provision upon which he relies. However, it denies that the dismissal was in any way related to the avoidance of his employment becoming permanent. Rather, it was submitted, the decision not to renew the Complainant’s employment was based on a belief that the role that he performed was no longer viable or necessary.
Net Issue
What is in issue in this case is whether, as the Complainant contends, he was penalised by the Respondent in contravention of s.13 of the Act. That section provides: –
13.—(1) An employer shall not penalise an employee—
(a) for invoking any right of the employee to be treated, in respect of the employee’s conditions of employment, in the manner provided for by this Part,
(b) for having in good faith opposed by lawful means an act which is unlawful under this Act,
(c) for giving evidence in any proceeding under this Act or for giving notice of his or her intention to do so or to do any other thing referred to in paragraph (a) or (b), or
(d) by dismissing the employee from his or her employment if the dismissal is wholly or partly for or connected with the purpose of the avoidance of a fixed-term contract being deemed to be a contract of indefinite duration undersection 9(3).
(2) For the purposes of this section, an employee is penalised if he or she—
(a) is dismissed or suffers any unfavourable change in his or her conditions of employment or any unfair treatment (including selection for redundancy), or
(b) is the subject of any other action prejudicial to his or her employment.
The Complainant relies on paragraph (d) of subsection (1) of this section. The Respondent conceded that the non-renewal of the Complainant’s fixed term contract constituted a dismissal for the purposes of s.13 of the Act. In light of that concession the net issue upon which this case turns relates to the motive or reason for the impugned decision not to renew the Complainant’s employment on the expiry of his final fixed term contract on 31stDecember 2012.
Evidence
Over three days of hearings, the Court heard evidence on behalf of the Respondent from Mr John O’Connor, Director of the Respondent and Dean of the College of Arts and Tourism and Mr Brian O’Neill, Director of Research with the Respondent who, at the material time was Head of the School to which the DMC was attached. Evidence was also given by the Complainant, Mr Evin McCarthy who was the Complainant’s line manager at the material time and Mr Eoin Kilfeather, Coordinator and Principal Investigator on the project in which the Complainant was employed.
The parties also furnished the Court with extensive written submissions and documentation relating to the factual matrix of the case. All of this evidence and material has been fully considered by the Court in reaching its conclusions.
The facts
The facts as admitted or as found by the Court on the evidence are as follows: –
At all material times the Complainant was employed at the DMC as a Business Development Manager (BDM). The role of the BDM was to develop existing business and acquire new business.
The DMC is described as a multidisciplinary research centre focused on research and commercial projects in the field of information and communication technologies. It specialises in research projects in the area of culture and heritage, language learning, multimedia interaction, spatially aware computing, digital heritage and machine learning.
The Complainant was employed on fixed term contracts which were subject to periodic renewal. The standard arrangement within the Respondent Institute by which approval is obtained to employ staff, including the renewal of fixed term contracts, is that a form, referred to as a Staff Requisition Form (SRF), is completed and submitted to the appropriate manager for approval. It is then submitted to the Human Resources Approval Group which is a sub-committee of the Human Resources Committee of the Respondent. These SRFs must contain a narrative setting out the justification for the post to which it relates and it must also identify the funding available for the post and the source of that funding. It must be signed by the appropriate Director of the Respondent before it can be submitted for final approval by the Human Resources Approval Group.
In his evidence, Mr O’Connor told the Court that the mere signing of a SRF by the relevant Director did not constitute an endorsement of the content of the SRF. Rather, that endorsement arises when the SRF is submitted to the Human Resources Approval Group. He said that the form has no status until it is approved by that Group. However, the formulation used in the section of these forms in which the Director’s signature is affixed does indicate that the Director must approve of what the document contains. It reads: –
“Director Approval
I approve the request for the above post and (for externally funded posts) the request is in line with the agency plan”
The signature of the Director is then affixed (which can be electronic where the Director so approves)
On each occasion on which the Complainant’s fixed term employment was renewed a SRF was prepared by the management of the DCM in respect of the proposed renewal and submitted in the normal way. The Court was told that the SRF was intended to provide justification for maintaining the role to which it relates rather than for the employment of a particular post holder.
The Court was told that at the time that the Complainant’s fifth contract was due for renewal in 2011, the management of the DMC believed that sufficient funding and work was then available to justify the continuation of the BDM role for a further 27 months. Mr Evin McCarthy told the Court that this belief was based on the fact that the DMC was then engaged in a project, known as the Decipher Project, which was due for completion in December 2013 and was fully funded up to that time. The Complainant was centrally involved with this project.
Accordingly, a SRF was prepared proposing an extension of the BDM post for 27 months following the expiry of the Complainant’s then current fixed term contract on 30thSeptember 2011. This SRF was presented to the then Director of the Faculty of Arts and Tourism, Ms Grant, and was approved and signed by Ms Grant. Mr McCarthy told the Court that shortly after Ms Grant signed the proposal contained in that SRF she contacted him by telephone to say that a 27 month extension of the Complainant’s fixed term employment would not be granted. Rather, Mr McCarthy was told, the contract would be renewed for a period of 15 months from 1stOctober 2011.
At that time the Complainant had accrued continuous fixed term employment with the Respondent of 2 years and 6 months. An extension of the Complainant’s contract for 27 months would have extended the aggregate duration of his fixed term contract beyond four years, thus, potentially at least, bringing s.9(3) of the Act into play. However, such a potentiality would not arise from an extension of 15 months, which would result in the Complainant having aggregate service of 3 years and 9 months on the expiry of that contract.
Events of 2012
Mr John O’Connor who is a Director of the Respondent institute and is Dean of the Facility of Arts and Tourism became involved with the DMC in 2012. That Centre is a unit of a school within the Institute and the head of the school, who would normally have had responsibility for the unit, was on sabbatical leave. Also, the manager of the DMC had retired and had not been replaced. In these circumstances Mr O’Connor became responsible for the Centre. His involvement commenced in the summer of 2012.
In anticipation of the expiry of the Complainant’s contract on 31stDecember 2012 Mr McCarthy prepared three separate SRFs seeking approval for the continuation of the Complainant’s employment. In each of these forms Mr McCarthy set out the case for retaining the Complainant in employment and addressed the funding that was then available to support the role. Each of these forms were submitted to Mr O’Connor and were approved by him. However, the form was not subsequently referred to the Human Resources Approval Group. According to Mr O’Connor he decided against submitting this form because he had formed the view that the role of Business Development Manager was not viable. He told the Court that a major issue for the Respondent related to the commercialisation of projects such as those undertaken by the DMC. That term relates to the degree to which projects generate net income to the Institute. The witness was concerned that the DMC as it was then structured was not meeting that objective.
The Court was told of meetings that Mr O’Connor had with the Complainant and Mr McCarthy in which he expressed dissatisfaction concerning the activity being undertaken by the DMC. He told the Court that he sought further information concerning the work being undertaken by the centre and that information was not provided.
In their evidence both Mr McCarthy and the Complainant denied that Mr O’Connor had expressed any dissatisfaction concerning the work in which they were engaged. They also told the Court that any additional information sought was provided.
It is noteworthy that SRFs which proposed the continuation of the Complainant’s role and the renewal of his fixed term employment were signed by Mr O’Connor at times when, according to his testimony, he had serious misgivings in relation to the need for a BDM and the viability of the Complainant’s employment. These forms contains a passage setting out the consequence of not filling the post in the following terms: –
“Self-sufficiency model for the centre will cease to function: During the past four years, a number of significant projects have been brought into the centre with the direct assistance of the BDM. This has resulted in income to the centre of about €1.4 million. Pipeline activities will cease: Overlapping projects and management of funding have been a key component of our pipeline, a tried and trusted commercial model. Currently pipeline fully covers six research posts (including increments) at the centre until Q1 of 2014. Misalignment of research thematic strategy: The centre activities are aligned with evolving research thematics and and [sic] removal of the role exposes the centre to the divergence from its strategic focused aims. Disruption to the development of programmes and new business: Without a BDM the DMC will loose [sic] its forward looking perspective and facility to win new business. It will also remove an ability to deliver on dissemination and exploitation activities essential to current research work. Loss of expertise: Programme Pls will loose [sic] a vital input in the preparation of funding proposals, a key factor in winning funding”
Policy of the Respondent in Relation to Fixed Term Employment
In 2011 the management of the Respondent prepared a report for the Human Resources Committee entitled ‘Recommendations to Respond to CID Exposure and Support DIT Research’. The thrust of this report was that the Respondent could be exposed to having a significant number of temporary fixed term employees becoming permanent members of its staff by operation of the Act. Its authors made a number of recommendations, the most significant of which, for present purposes, is that contained at paragraph 1.5 (at page 10), as follows: –
DRE recommends the implementation of Option 8 above. There are two aspects this recommendation:
1.To maintain / enhance the research base a select number of Flosgraigh Research Fellows will be appointed based on stringent internationally-benchmarked criteria (section 2)
2.No further contract extensions or renewals will be given to any contract positions, regardless of the case (section 4)
In his evidence in relation to this document, Mr O’Connor told the Court that it stemmed from a concern on the part of the Respondent to ensure that its staff were employed appropriately. He said that the document was tabled at a meeting of the Human Resources Committee and it was neither accepted nor rejected.
The Court was also referred to a document entitled ‘Research Staffing Model’.This document was produced by the Human Resources Committee of the Respondent in 2012 against the background of the application of an employment control framework within the public service. The purpose of the employment control framework was to place limitations on the numbers employed across the public service, including the education sector.
While this is an extensive document its noteworthiness, in the context of the instant case, lies in the recommendations that it contains in relation to the control of fixed term contracts and, in particular, the need which its authors identified to prevent fixed term employees obtaining a contract of indefinite duration by operation of the Act.
Of particular note is the recommendation contained at pars 2.3.1, 2.3.2 and 2.3.3 of the document as follows: –
“2.3.1 Recommendation
All research posts must be publicly advertised. Research posts will be special purpose / fixed term contracts (i.e. a contract that limits the period of employment to the completion of a particular research task or tasks with a maximum time limit) and be associated with an identifiable, funded research programme. After the expiry of the time / task the post holder leaves the post and will not be reengaged by DIT in any post other than in a permanent capacity it should clearly be understood that these candidates will be excluded at shortlisting or equivalent stages for any non-permanent post in DIT”
The document then continues: –
“2.3.2 Recommendation
Based on the above, research employment contracts cannot be extended beyond the end of the first employment contract period in DIT. In other words, no contract extension will be approved.
It will be essential that contracts are properly managed and fixed term employees are not granted renewal or retained in employment (even in error or inadvertently) after the expiry of the term.”
“2.3.3 Recommendation
Individuals in their first contract of employment in DIT or who, after a contract renewal, do not have 4 years accumulated service will not have their contracts renewed or extended as their contracts expire”
In evidence Mr O’Connor accepted that the content of this document seemed to represent the policy of the Respondent.
There was some controversy as to whether the Complainant’s position was a research role and if his employment was encompassed by this policy. However, the Court is satisfied on the evidence that the function performed by the DMC came within the general designation of research. It that regard it is noteworthy that SRFs created in respect to the proposed renewal of the Complainant’s post contains a question in the following form: –
“Please confirm that this post is to be considered under the Research Staffing Model”
Two boxes are provided in which to answer yes or no
On the last SRF signed by Mr O’Connor and dated 17thOctober 2012 the box indicating an affirmative answer was ticked. It is noted, however, that in an earlier SRF the opposite answer is given,
In any event, the Court regards it as highly unlikely that the Respondent would pursue a policy in respect of fixed term employees employed in research and adopt a different position to fixed term employees engaged in other activity.
Termination of the Complainant’s Employment
A document entitled “Employment Contract Analysis” was prepared, in or about November 2012, for the purpose of assisting Mr O’Conner in deciding if he should recommend the continued employment of the Complainant to the Human Resources Committee. This documents recited the Complainant’s employment history. It also contains comments on a claim that the Complainant had made for a contract of indefinite duration and possible defences that may be available to the Respondent in proceedings that the Complainant had either brought or might bring under the Act.
Under the heading ‘Overall Assessment’ it states as follows: –
“Mr W. does not complete 4 years’ service until 01/04/13. The Institute could argue that Mr W. is not protected by the Protection of Employees (Fixed Term Work) Act until such time as he completes 4 years continuous service and it purports to re-engage him on a fixed term contract. His current contract ceases on 31/12/12.
Section 9(2) of the Protection of Employees (Fixed Term Work) Act 2003 does not prevent an employer from renewing a Fixed Term contract if there are genuine objective grounds for so doing (Section 9(4) refers). The Director needs to consider the objective grounds if it is intended to renew Mr W.’s contract from 01/01/13. The objective ground must satisfy the three-tier test i.e. “real need” or legitimate objective of the employer, it must be “appropriate” to meet the objective which it pursues and the measures must be “necessary” in order to meet that objective.”
The document then continued in bold type: –
“There is limited exposure under the Act. However, if the College intends renewing Mr W.’s contract on 01/01/13 the exposure for a CID will significantly increase”
There followed a section headed “Director’s Comments and Proposal to HRC”. This section was completed as follows: –
“Ongoing requirement for the post:The College, in conjunction with DRE is currently reviewing the DMC. Any future role for a Business Development Manager will be part of that review which is expected to have a completion date in January 2012.
Funding Source:The post was previously funded from externally funded research projects in DMC
I propose to HRC that, in these circumstances, we do not intend seeking a renewal of Mr W.’s contract.”
This document was signed by Mr O’Connor and dated 21stNovember 2012.
No documentary evidence was tendered to show that any review of the type referred to in this document was, in fact undertaken,
Finally the Complainant told the Court that following the termination of his employment the funding and the functions in respect to the project on which he worked for the Respondent were transferred to the Royal Irish Academy. He was employed by the RIA on a one year fixed term contract in conjunction with that project. While his job title was not that of Business Development Manager he told the Court, and the Court accepts, that the particulars of his duties in that post were the same in every material respect as those that he performed in respect of the project when employed by the Respondent.
Discussion
As earlier stated in the Determination, the net issue in this case is whether the Complainant was penalised by the Respondent within the meaning ascribed to that term by s.13(1)(d) of the Act. It is conceded by the Respondent that the non- renewal of the Complainant’s fixed term contract, on its expiry at the end of 2012, constituted a dismissal. Hence, the case turns on a question of whether the decision not to renew the Complainant’s employment was, in the words of s.13(1)(d) of the Act, “wholly or partly for or connected with the purpose of the avoidance of a fixed-term contract being deemed to be a contract of indefinite duration unders. 9(3)”.
The language used in the statute imports a test of causation. The purpose of avoiding a fixed term contract being transmuted to one of indefinite duration need not be the only reason for the dismissal. It is sufficient if it was an operative consideration in the sense that it was an influential factor operating on the mind of the decision maker at the time that the impugned decision was made. What did, or more importantly in the context of the question arising in this case, what did not influence a decision maker is a question of fact which must be established by drawing inferences from the evidence adduced. As was pointed out by Noonan J inBoard of Management of St. Joseph’s School for Deaf Boys v Philip Grehan[2015] 605, at par 29, such inferences must of course be drawn having regard to the factual matrix as a whole and not in the teeth of established facts.
The evidence in this case disclosed that at the end of 2012 the DMC was fully funded and the continued employment of the Complainant was financially viable up to at least 2014. It also had sufficient work in hand to occupy all its staff, including the Complainant.
At the time that the decision was taken not to renew the Complainant’s employment the Respondent Institute was actively concerned to ensure that its permanent staffing levels was not unintentionally expanded by temporary fixed term employees attaining permanency of tenure by operation of the Act. This imperative was significantly influenced by the introduction of the employment control framework which reflected the funding constraints on all public sector employers arising from the economic recession at that time. It also appears clear to the Court that another influencing factor was the provision in the then Public Service Agreement between the Government as an employer and the Trade Unions representing public servants which curtailed the capacity of the Public Sector employers, including the Respondent, to make surplus permanent staff redundant.
It is clear that a central strategy adopted by the Respondent in pursuance of that objective was to avoid situations in which fixed term employees would come within the ambit of s.9 of the Act by accruing more than four years continuous fixed term employment. That is clear from the document entitledRecommendations to Respond to CID Exposure and Support DIT Researchand that entitled ‘Research Staffing Modelboth of which were considered earlier in this Determination. While evidence was led on behalf of the Respondent that these documents did not relate to the Complainant’s employment, the Court cannot accept that evidence. In the SRF approved by Mr O’Connor on 17thOctober 2012 it is stated that the Complainant’s position did come within the Research Staffing Model. Moreover, having regard to the background against which these documents were created the Court cannot accept that the strategy which they disclosed was limited only to a particular category of fixed term employees.
The Court has carefully considered the evidence adduced to the effect that in the lead up to the expiry of the Complainant’s final fixed term contract, in December 2012, there was a concern at the continuing viability of the role performed by the Complainant. The Court has reviewed a considerable volume of emails and other documents put in evidence concerning the interaction between Mr O’Connor and the management of the DMC at the material time. It could find nothing to corroborate Mr O’ Connors claims that he had expressed dissatisfaction with the work being undertaken by the Centre. The Court is also satisfied on the evidence that any information sought by Mr O’Connor in relation to the Centre was provided promptly.
The evidence tendered on this point is also wholly inconsistent with the narrative contained in the three SRFs signed by Mr O’Connor at the time when he claimed to have experienced serious misgivings concerning the need for a BDM in the DMC. The clear import of these documents was that the role of BDM was necessary and that the Complainant’s employment should be continued. On that point, the Court is satisfied that unless Mr O’Connor adopted and approved of what these SRFs contained he would not have signed them.
The Court also considers it significant that in 2011, the then Director of the Respondent approved a proposal to extend the duration of the Complainant’s contract for a duration of 27 months in circumstances where both the funding and the work available to the DMC supported such a renewal. That proposal was not accepted and an extension of 15 months was provided instead. It is reasonable to infer that this decision was influenced by the realisation that a 27 month extension would bring the Complainant’s aggregate service over four years and thus bring section 9 of the Act into play.
The document entitledEmployment Contract Analysiswhich contained the recommendation that the Complainant’s employment be terminated made it expressly clear that any renewal of his employment into 2013 would place the Respondent on hazard of having to afford him permanency of tenure. The reason given on that form for the recommendation that it contained was that a review of the DMC and the role of the BDM was being undertaken and would be completed in January 2013. The Court is satisfied on the evidence that no such review was in fact undertaken.
Conclusion
Having regard to all of the evidence the Court has come to the conclusion, as a matter of probability, that the decision not to renew the Complainant’s final fixed term contract on its expiry was influenced by the probability that he would come within the protection of s.9(3) of the Act if his employment was further extended. It follows that the decision was connected with the avoidance of his fixed term contract being deemed to be a contract of indefinite duration under s.9(3) of the Act and therefore constituted penalisation within the meaning of s.13 of the Act.
Accordingly, the Complainant is entitled to succeed in his appeal.
Redress
The Court is satisfied that the appropriate mode of redress in this case is an award of compensation. Section 27 of the Act provides that a Rights Commissioner (and this Court on appeal) can award such compensation as it fair and equitable having regard to all the circumstances up to a maximum amount equal to two years remuneration.
At the time of the Complainant’s dismissal he was paid a salary of €73,669. In addition, he was provided with a pension contribution of €11,000 per annum. His total remuneration was therefore €84,699 per annum. Following his dismissal the Complainant was employed for one year on a fixed term contract on a somewhat reduced salary. He then emigrated to the USA where he currently resides and works.
The Court believes that, had he not been dismissed in circumstances of penalisation, he would have had a good prospect of attaining a permanent post in the Respondent which is a prestigious academic institute. He would also have had the advantage of security of tenure and the other benefits attached to a permanent post in the Public Service. The Court is also satisfied that the Complainant suffered non-pecuniary loss, inconvenience, expense (other than in respect of professional and legal expense which cannot be taken into account) and distress in consequence of the penalisation that he suffered. These are also factors to be taken into account.
Having regard to all the circumstances of the case the Court has come to the conclusion that the quantum of compensation that is fair and equitable should be measured at 133% of the Complainant’s final annual remuneration. The Court therefore awards the Complainant compensation in the amount of €112, 932. The Respondent is directed to pay the Complainant compensation in that amount.
Disposal
The appeal is allowed and the decision of the Rights Commissioner is set aside and substituted with this Determination.
Signed on behalf of the Labour Court
Kevin Duffy
9th May 2016______________________
JKChairman
FULL RECOMMENDATION
FTC/11/58
DETERMINATIONNO.FTD126
(r-100953-ft-10/JT)
INDUSTRIAL RELATIONS ACTS, 1946 TO 1990
SECTION 15(1), PROTECTION OF EMPLOYEES (FIXED-TERM WORK) ACT, 2003
DIT v NEALON
SUBJECT:
1. Appealing against a Rights Commissioner’s Decision R-100953-Ft-10/Jt
BACKGROUND:
2. The worker appealed his case to the Labour Court on the 24th October, 2011. A Labour Court hearing took place on the 7th February, 2012. The following is the Court’s determination:
DETERMINATION:
This is an appeal by Mr Stephen Nealon against the Decision of a Rights Commissioner in his claims against the Dublin Institute of Technology under the Protection of Employees (Fixed-Term Work) Act 2003 (the Act). In this Determination the parties are referred to as they were at first instance. Hence, Mr Nealon, who is the appellant in this case, is referred to as the Claimant and the Dublin Institute of Technology is referred to as the Respondent.
Background
The Claimant is an hourly paid, part-time, Assistant Lecturer in plumbing and is attached to the Respondent’s School of Construction. He taught apprentices as part of the FÁS standards based apprenticeship scheme. The Claimant’s employment commenced on 19thSeptember, 2005, on a fixed-term contract to 30thJune, 2006. Thereafter his employment was renewed on a series of fixed-term contracts as follows: –
•1stSeptember, 2006 – 30thJune, 2007
•1stSeptember, 2007 – 30thJune, 2008
•1stSeptember, 2008 – 30thJune, 2009
•1stSeptember, 2009 – 30thJune, 2010
•21stSeptember, 2009 – 30thJune, 2011
In accordance with s.8 of the Act each of the fixed-term contracts contained a statement of the objective grounds relied upon for the renewal of the contract for a fixed-term and the failure to provide the Claimant with a contract of indefinite duration. The statement contained in the contracts concluded in September, 2007 and September, 2008, was in common form as follows: –
“The Institute is offering you a renewal for a fixed-term rather than a contract of employment of indefinite duration because the nature of the position is dependent on teaching hours being available and the continuation of the programme on which you teach”
The contracts concluded in September, 2009, and September, 2010, contained differently formulated grounds as follows: –
“The Institute is not in a position to offer you a permanent position at this time as it is subject to State control as set out in the Moratorium on Recruitment in the Public Service and the Employment Control Framework for Higher Education Sector together with budgetary constraints within the Institute”.
In or about 2007 an agreement was reached between the Teachers Union of Ireland, the Management Authorities of Institutes of Technology and the Department of Education and Science on a number of issues relating to the implementation of the Act of 2003 in the Institutes of Technology. The terms of this agreement were incorporated in Department of Education and Science Circular 0093/2007 dated 20thSeptember 2007. Clause 2.2.1 of this circular provides as follows: –
The employer shall issue a contract of indefinite duration to any fixed term lecturer with 4 years or more successive lecturing service on 1stSeptember 2006 or on any date thereafter (those employed for the first time after 14thJuly 2003 must have 2 or more successive contracts) who is deemed qualified and who is not excluded by reason of one or more of the following which the employer can demonstrate: –
(i)That the post will not be viable within a reasonable period and where such a ground was set out as an objective ground in writing in the previous contract
(ii)[Not relevant]
(iii)[Not relevant ]
The Claimant contends that the fixed-term contract with which he was furnished in September 2009 contravened s.9(2) of the Act, in consequence of which that contract became one of indefinite duration by operation of s.9(3) of the Act. The claim was considered by a Rights Commissioner who founds against the Claimant. The Rights Commissioner had accepted arguments advanced by the Respondent to the effect that the Claimant’s post ceased to be viable due to the decline in student numbers in the construction trades in consequence of the recession. The Claimant appealed to this Court.
Position of the Parties
The Claimant
The Claimant’s case is that he commenced employment as a fixed-term employee on 19thSeptember, 2005. At the time his penultimate contract was issued on 21stSeptember, 2009, the aggregate duration of his fixed-term employment had exceeded four years. He claims that the objective grounds relied upon in that contract was that the moratorium on recruitment in the public service precluded his employment on a contract of indefinite duration. This, he contends, could not amount to an objective ground for the continued renewal of his employment for a fixed-terms as it is based primarily on considerations of cost. In so far as the Respondent relied upon the decline in student numbers as justification for its failure to offer him a contract of indefinite duration, the Claimant contends that this was not relied upon at the material time. Moreover, it was pointed out on the Claimant’s behalf that the collective agreement referred to in Circular 00093/2007 expressly provides that where the non-viability of a post is relied upon as objective grounds for the continued renewal of a fixed-term contract, this must have been specified in the preceding contract.
The Claimant told the Court that in September, 2009, the number of apprentice courses in plumbing had not declined. He also told the Court that he was first made aware, by the Assistant Head of the School, of a potential problem with student numbers some time after the contract of September, 2009, was concluded.
The Respondent
The Respondent submitted that the reason for renewing the Claimant’s employment for a fixed-term beyond the period normally permissible by s.9(2) of the Act was that figures becoming available from FÁS, from early 2009 onwards, showed a sharp decline in apprentice numbers. It was then apparent to the Institute that if that trend continued there would be insufficient apprentices to maintain the number of classes which it then provided. The Respondent accepts that this consideration was not specified in the fixed-term contracts furnished to the Claimant in September 2009, or subsequently. Nonetheless, the Respondent contends that the Claimant must have been aware of the extent of the decline in construction-related employment and the inevitable consequence which this would have for the viability of his post. It further contends that the Claimant was verbally informed by the Assistant Head of the School of Construction of the factual position concerning the effect which the decline in apprentice numbers would have on the future viability of his employment. The Respondent contends the non-viability of a post is recognised by the collective agreement, referred to earlier in this determination, as constituting objective grounds for not offering a fixed-term contract employee a contract of indefinite duration.
Evidence was given on behalf of the Respondent by Mr John Smartt, who was the Assistant Head of the School of Construction at the material time. He told the Court that from early 2009 it became apparent that the decline in the number of apprentices in the construction trades being registered by FÁS would have serious consequences for the future viability of construction related courses run by the Respondent. He said that he had informed the Claimant of the emerging situation and the likely implications which it would have for his continued employment with the Respondent. When asked if these concerns had been mentioned to the Claimant before the contract of September, 2009, was concluded, the witness told the Court that it was nearer the end of the year that he spoke to the Claimant about the true extent of the impending difficulties.
Conclusion of the Court
Both parties have sought to rely on Department of Education and Science Circular 0093/2007 in advancing their respective positions on issues arising in this case. As was pointed out by this Court in Determination FTD1117,Athlone Institute of Technology v Hannify & Ors,this Circular, and the collective agreement to which it gave effect, provides a useful indication of the intention of the parties to the agreement on what can constitute objective grounds for the purposes of the Act. However, neither the circular nor the collective agreement can offset or supplant the clear provisions of the Act nor can they be relied upon to determine the entitlement of any person to a benefit created by the Act. Accordingly this case must be determined by application of the legal principles derived from the Act itself.
The applicable legal principles are contained at Sections 7, 8 and 9 of the Act.
Section 7 provides: –
(1) A ground shall not be regarded as an objective ground for the purposes of any provision of this Part unless it is based on considerations other than the status of the employee concerned as a fixed-term employee and the less favourable treatment which it involves for that employee (which treatment may include the renewal of a fixed-term employee’s contract for a further fixed term) is for the purpose of achieving a legitimate objective of the employer and such treatment is appropriate and necessary for that purpose.
(2) Where, as regards any term of his or her contract, a fixed-term employee is treated by his or her employer in a less favourable manner than a comparable permanent employee, the treatment in question shall (for the purposes ofsection 6(2)) be regarded as justified on objective grounds, if the terms of the fixed-term employee’s contract of employment, taken as a whole, are at least as favourable as the terms of the comparable permanent employee’s contract of employment.
Section 8 of the Act provides:
(1) Where an employee is employed on a fixed-term contract the fixed-term employee shall be informed in writing as soon as practicable by the employer of the objective condition determining the contract whether it is—
(a) arriving at a specific date,
(b) completing a specific task, or
(c) the occurrence of a specific event.
(2) Where an employer proposes to renew a fixed-term contract, the fixed-term employee shall be informed in writing by the employer of the objective grounds justifying the renewal of the fixed-term contract and the failure to offer a contract of indefinite duration, at the latest by the date of the renewal.
(3) A written statement under subsection (1) or (2) is admissible as evidence in any proceedings under this Act.
(4) If it appears to a rights commissioner or the Labour Court in any proceedings under this Act—
(a) that an employer omitted to provide a written statement, or
(b) that a written statement is evasive or equivocal,
the rights commissioner or the Labour Court may draw any inference he or she or it consider just and equitable in the circumstances.
Section 9 of the Act provides:
(1) Subject to subsection (4), where on or after the passing of this Act a fixed-term employee completes or has completed his or her third year of continuous employment with his or her employer or associated employer, his or her fixed-term contract may be renewed by that employer on only one occasion and any such renewal shall be for a fixed term of no longer than one year
(2) Subject to subsection (4), where after the passing of this Act a fixed-term employee is employed by his or her employer or associated employer on two or more continuous fixed-term contracts and the date of the first such contract is subsequent to the date on which this Act is passed, the aggregate duration of such contracts shall not exceed 4 years.
(3) Where any term of a fixed-term contract purports to contravene subsection (1) or (2) that term shall have no effect and the contract concerned shall be deemed to be a contract of indefinite duration.
(4) Subsections (1) to (3) shall not apply to the renewal of a contract of employment for a fixed term where there are objective grounds justifying such a renewal.
(5) The First Schedule to the Minimum Notice and Terms of Employment Acts 1973 to 2001 shall apply for the purpose of ascertaining the period of service of an employee and whether that service has been continuous.
Having regard to these statutory provisions the issues arising in this case are relatively concise. By September 2009 the Claimant has been employed on a succession of fixed-term contracts the aggregate duration of which exceeded four years. Hence, the fixed-term contract issued to him on 21stSeptember 2009, covering the period up to 30thJune 2010, contravened s.9(2) of the Act unless it was saved by s.9(4). If the fixed-term nature of that contract was not saved by s.9(4) it became one of indefinite duration by operation of s.9(3) from the date of its commencement, namely 21stSeptember, 2009, and the Claimant was, thereafter, employed on a contract of indefinite duration as a matter of law. It follows that the determinative point in this case is whether or not the renewal of the Claimant’s fixed-term employment, on 21stSeptember, 2009, was justified on objective grounds within the meaning of s.7 of the Act and thus saved by s.9(4) of the Act.
In considering that question the provisions of s.8 of the Act are highly relevant. The Claimant was provided with a statement in writing pursuant to that Section. However, the Respondent does not seek to rely on the content of that statement in advancing its case. Rather, it now accepts that the stated reasons for the renewal of the Claimant’s fixed-term employment which were relied upon at the time the contract in issue was concluded do not constitute objective grounds within the statutory meaning. The Respondent now contends that, contrary to what was contained in the statement given to the Claimant pursuant to s. 8 of the Act, the real reason for the impugned renewal was a fall-off in demand for the courses that he was employed to teach.
Sections 8 and 9 of the Act are intended to give effect to Clause 5 of the Framework Agreement on fixed-term work concluded by ETUC, UNICE and CEEP annexed to Directive No. 1999/70/EC of 28 June 1999 of the Council of the then European Communities. The clear objective of Clause 5 of the Framework Agreement is to prevent the abuse of successive fixed-term contracts. Consequently the provisions of the Act must be interpreted and applied so achieve the objective pursued by the Framework Agreement.
In Determination FTD064,HSE North Eastern Area v Khanthis Court considered the purpose serves in the overall legislative scheme by the obligation to inform a fixed-term of the objective grounds for the renewal of his or her fixed-term contract. The Court concluded as follows: –
It seems to the Court that the purpose of Section 8 is not just to ensure that a fixed-term employee is informed of the reason why his or her contract is being renewed. On a reading of the Section as a whole it is clear that it is intended to ensure that the employer definitively commits itself, at the point at which the contract is being renewed, to the grounds upon which it will rely if subsequently pleading a defence under Section 9(4). Thus where an employer fails to provide a fixed-term employee with a statement in writing, in accordance with Section 8(2), it is apt to infer, in accordance with Section 8(4) of the Act, that the grounds subsequently relied upon were not the operative grounds for the impugned decision and it would be for the employer to prove the contrary.
In this case the Respondent did provide the Claimant with a statement of objective grounds at the material time. It now seeks to rely on alternative grounds which were never stated in writing. In these circumstances it is equally apt to infer that had the reasons now relied upon by the Respondent been the operative grounds for the renewal of the Claimant’s fixed-term employment in September, 2009, they would have been included in the statement furnished to him at that time under s.8 of the Act.
Such an inference is also supported by the evidence given on behalf of the Respondent by Mr Smartt. This witness told the Court that it was towards the end of 2009, and after the relevant contract was concluded, that the Claimant was informed of the extent of the Respondent’s concerns in relation to the continuing viability of his teaching post. It is entirely appropriate to infer from this evidence that the question of the continuing viability of the Claimant’s position only crystallised around the time that they were first mentioned to the Claimant which was after the contract in issue had been concluded.
It is clear that s.9(4), and by extension s.9(3), takes effect at the commencement of the impugned contract. This was pointed out by Hanna J inRussell v Mount Temple Comprehensive SchoolIEHC 533. It follows that the reasons relied upon as constituting objective grounds for the purposes of the Act must have been the reasons operating on the mind of the relevant decision-maker at the time the impugned decision was made. That was the effect of the decision of this Court in Determination FTD0819St Catherine’s College of Home Economics v Moran and Malone. Furthermore, the decision of the CJEU in Case 476/99Lommers v Minister van Landbouw, Natuurbeheer en Visseri[2002] IRLR 430, is authority for the proposition that a plea of objective justification in defence of a claim grounded on a social right derived from the law of the European Union equates to reliance on a derogation from that right. Like all derogations it must be strictly construed against the person by whom it is invoked.
In this case the grounds now relied upon by the Respondent were not referred to in the notice provided to the Claimant pursuant to s.8 of the Act. Taking the evidence proffered by the Respondent at its height these grounds were only mentioned verbally to the Claimant after his fixed-term employment was renewed beyond the four years period normally permitted by s.9(2) of the Act. In these circumstances, and on the balance of probabilities, the Court has come to the conclusion that the reasons now relied upon by the Respondent to justify the renewal of the Claimant’s fixed-term employment beyond that four-year period were not the actual or operative reasons for the impugned renewal. Rather, the Court believes that it is more probable than not that the actual and operative reasons were those stated on the face of the contract itself. As the Respondent has conceded that those stated reasons do not amount to objective grounds within the meaning of s.7 of the Act its plea of objective justification cannot succeed.
Determination
For the reasons set out herein the Court has come to the conclusion that the term in the contract of employment issued to the Claimant, dated 21stSeptember, 2009, which provided for its expiry by effluxion of time contravened s.9(2) of the Act and was, therefore, void. By operation of s.9(3) that contract became one of indefinite durations with effect from the date of its commencement, namely, 21stSeptember, 2009.
Accordingly the Decision of the Rights Commissioner is set aside and is substituted with this Determination. The Court makes no further Order.
Signed on behalf of the Labour Court
Kevin Duffy
17th February, 2012______________________
CONChairman