…the longed-for tidal wave of justice can rise up and hope and history rhyme

A tribute to our late lamented laureate, Seamus Heaney

Died August 30th 2013

 From ‘The Cure at Troy’

 

Human beings suffer,

They torture one another,

They get hurt and get hard.

No poem or play or song

Can fully right a wrong

Inflicted and endured.

 

The innocent in gaols

Beat on their bars together.

A hunger-striker’s father

Stands in the graveyard dumb.

The police widow in veils

Faints at the funeral home.

 

History says, don’t hope

On this side of the grave.

But then, once in a lifetime

The longed-for tidal wave

Of justice can rise up,

And hope and history rhyme.

 

So hope for a great sea-change

On the far side of revenge.

Believe that further shore

Is reachable from here.

Believe in miracle

And cures and healing wells.

 

Call miracle self-healing:

The utter, self-revealing

Double-take of feeling.

If there’s fire on the mountain

Or lightning and storm

And a god speaks from the sky

 

That means someone is hearing

The outcry and the birth-cry

Of new life at its term.”

Seamus Heaney

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Mediation in the Workplace; Are we going backwards?

We expect to have a Mediation Bill next year which will transform dispute resolution in the civil and commercial sector. And yet, we appear to be going backwards in relation to mediation in workplace and employment rights disputes. For more on mediation and ADR please click here

In my submissions at the consultation phase of the workplace relations reform programme I argued strongly for an early intervention mediation service, at the same stage in proceedings as the Conciliation service that operates in the LRC for traditional disputes. (You can read my submission to the review here)

But also conscious that there was a cost cutting aspect to this I suggested (not entirely disinterestedly) that a panel of private mediators might be established for this purpose.

This was rejected, although I got to discuss it with the senior official then driving the project who was alive to the importance of mediation as an option.

But when it emerged there was never much of a serious attempt to represent the Early Resolution Service as a mediation option. It is little more than a ‘triage’ step and this is a disappointment especially in terms of getting real ‘Early Resolution’ of employment rights disputes.

I am a huge fan of the Rights Commissioner service. Their willingness to mediate settlements (having heard the parties) is a huge advantage in most cases, although you can’t always rely on the Commissioner acting in this way.

It is not strictly within their brief to act as a mediator/dispute resolver, although thankfully most of them do. But I have had experience of them going straight to hearing and then issuing a recommendation when you were hoping otherwise.

However it is not without its critics. Some solicitors in particular dislike it and criticise how it is done.

As it happens the entire Rights Commissioner/EAT structure looks set to be washed away over the next couple of years.

I don’t think one can view the proposed Adjudicator system as a direct replacement for the Rights Commissioner service.  It will provide a first instance hearing and have jurisdiction for all cases.  I assume it will be required to adopt the EAT ‘evidence only’ approach rather than the more informal submissions approach currently used. (Also I’m not sure what will become of traditional non statute-based employment rights cases cases submitted under the 1946 Industrial Relations Act).

One worry about the new Adjudicator layer is that the draft legislation appears to be written in such a way as to specifically exclude the possibility of settlements in the manner the Rights Commissioners currently do them.

As the draft legislation is written it requires a written determination to be issued following the hearing which seems to exclude the Rights Commissioner type of fix!

They could, of course facilitate the parties as the EAT does by delaying the hearing while the parties battle it out in the corridor but this is not quite the same thing. With the Rights Commissioner you know that if you weren’t roughly within the area s/he was thinking of issuing an award you would not fall too far outside that in a settlement.

There are two problems at the moment; the critical problem is delay. A good proportion of cases are settled at the EAT but the best part of two years after they have arisen (76 weeks in Dublin at the moment from referral to hearing) and longer at the Equality Tribunal.

While the employer has the option to object to a Rights Commissioner hearing in a limited number of cases they are inviting greater exposure at the EAT and entering unknown territory if they do so.

The new system may well take care of the delay problem; only time will tell.

But the second question is how we get early, effective and amicable resolution of disputes both those involving an end to the employment relationship and those which don’t.

While it has not really been a priority for any of the social partners (despite certain tokenistic references to it in the Code of Practice and elsewhere) the option to mediate is still the best one and the issue that arises is; if the state is not prepared to do it are there options for private mediation (or even arbitration) of claims.

On the former it is settled law that even statutory, rights-based claims can be compromised (i.e. settled) subject to a number of considerations, which if fulfilled will result in the settlement terms being enforced by the EAT.

I favour amending Grievance and Discipline policies first by re-styling them ‘Dispute Avoidance and Resolution’ processes and then introducing a mediation step, both for internal discipline issues but also for rights based claims even where the employment relationship has terminated.

Will this ‘bind’ former employees? Well that is far from certain and may be unlikely. And there is controversy about the idea of any suggestion of ‘compulsory’ mediation, but the alternative of a long wait for a hearing might make a little bit of pressure to get around the table more attractive.

But the new draft civil mediation legislation (due early 2014) will enable a court to penalise even a successful litigant who has behaved unreasonably at the mediation stage and revised Rules of Court already in place permit this even now. There is well established jurisprudence to this effect in Britain (see Halsey v Milton Keynes Trust)

This legislation, when enacted extends to employment disputes in certain circumstances. Obviously costs do not arise in the employment rights world but it would be a start if the state discouraged the processing of claims within the formal system if they had not been through a mediation stage. I have seen many cases where employees referred cases to the Rights Commissioner service (more accurately their solicitors did) while discussions were still underway at local level.

But in general terms the age of mediation is upon us and it will be in increasing use in civil and commercial disputes in the future. It surprises me how slow business organisations have been to embrace it and even slower to look at its potential in employment disputes.

For example, could there be industry or sector based mediation services, although it is likely that the employer would end up paying. But if costs could be spread more broadly, and resulted in earlier and more amicable dispute resolution this might be a very welcome thing to employers.

In arguing for his reforms Richard Bruton has exploited the widespread (and  much of it justified) dissatisfaction with the EAT in particular. (In general, I support the reforms and disagree with criticism of them from the legal profession).

But the point is they only replace one system of arbitration or adjudication with another. Even if its better in that respect employers (and unions) need to do more to reduce the referral of disputes outside the workplace, or at least to a place where resolution is possible, early and cheap!

The actual ‘early (and amicable) resolution’ of disputes remains a missing link in the Bruton reforms, even allowing for the greater role NERA will have in minor claims such as Terms of Employment (Information ) Act compliance issues. It is also at odds with this Government’s general policy to alternative dispute resolution which is hard to understand.

Posted in Arbitration/ADR, Employment Law, Employment Law/HR, Human Resources, Mediation, Rights Commissioner | Tagged , , , , , , , | Leave a comment

Legislation introduced to US Senate banning pre-dispute arbitration clauses

This is news that may sound strange to Irish arbitration practitioners and the wider ADR community.

The Arbitration Fairness Act (S. 878/H.R. 1844) was introduced by Sen. Al Franken and Rep. Hank Johnson and would only permit arbitration that is agreed to after the dispute arises, unless the arbitration provision is in a collective bargaining agreement.

The Bill’s preamble, rather surprisingly states:

“Mandatory arbitration can be a huge disadvantage to consumers, workers, and small businesses, often limiting their ability to have any meaningful legal recourse when they are wronged.”

In a statement, Franken said, “I’ve reintroduced the Arbitration Fairness Act to ensure that people and small businesses maintain their right to their day in court when they are cheated.”

As usual things look different to European eyes. The European union has recently introduced a number of measures to facilitate alternative and on-line dispute resolution processes for consumers which have beed widely welcomed as providing an alternative to court action. Many consumers will see the opportunity to go to courts as a less than enticing prospect. (The Small Claims Court, wuth a claims limit of €2,000 being an exception)

But in the US the premise is that “mandatory arbitration undermines the development of public law because there is inadequate transparency and inadequate judicial review,”  and so the legislation has been reintroduced to impose a broad ban on pre-dispute arbitration agreements involving employment and consumer disputes.

There is no congressional action currently scheduled on the bill, and it is considered highly unlikely the measure will see action by the Republican House of Representatives, according to international HR agency BEERG.

The campaigning website ‘Fair Arbitration Now’ describes forced arbitration clauses as ‘an abusive corporate tactic to stamp out consumers’ and employees’ rights’.

According to the website over the last year, the US Supreme Court has issued three decisions that expanded companies’ use of ‘forced’ arbitration clauses in consumer and non-union employment contracts.

It says the Court has allowed companies to restrict the right to access the court by expanding arbitrators’ power and limiting consumers’ and employees’ ability to band together in class actions. But is this a bad thing?

‘Just last month in AT&T Mobility v. Concepcion, the Court gave the green light to corporations to ban class actions in their contracts. So now we are left virtually without recourse and corporations are free to act without any fear that they may be held accountable for their actions.’

Can’t go along with this, I’m afraid. We need more, not less alternative dispute resolution vehicles as alternatives to court and less resort to the formal law system. Looks like just more work for lawyers!!

Posted in Arbitration, Arbitration/ADR, Constitutional law, Employment Law, Employment Law/HR, Human Resources, Human rights, Mediation | Tagged , , , , , , , | Leave a comment

The Workplace Investigation and the Law Part 3

(In this piece I will discuss cases which stray beyond the ‘pure’ investigation, please see earlier posts for full paper)

A second, and related point is that, in my submission (and despite the comfort that may be found in the foregoing case law) investigators should think twice about assignments where the terms of reference take them beyond the pure investigation described there.

 That brings me to the following cases where precisely that problem arises.

McLoughlin v Setanta Insurance Services Ltd 2011 [IEHC] 401 Injunction granted

Giblin v Irish Life & Permanent PLC [2010] IEHC 36

O’Sullivan v. Mercy Hospital Cork Limited, [2005] IEHC 170

These are all cases where to one extent or another the investigation process was compromised by breaches of fair procedure, the breach activated by the fact that they moved beyond the Minnock ‘pure investigation’ principle and into sanction.

It should be noted that some form of combined investigation/disciplinary step is not ruled out per se.

In Giblin Laffoy J. said that a one stage ‘inquisitorial process’ was possible.

It is not to be inferred from this decision that I consider that it is not appropriate for executives of the defendant who are involved in the human resources aspects of the defendant’s management to conduct the type of investigation which was conducted in relation to the plaintiff. Nor is it to be inferred that I am of the view that the person or persons who conduct the “thorough investigation” to be conducted under para. (iv) of the Disciplinary Procedures in all cases should not be the decision maker as to whether the conduct of the employee being investigated warrants a serious sanction such as dismissal. A one stage inquisitorial process may be appropriate in many cases.

This may be a matter of terminology but it is certainly confusing (to non lawyers anyway) to describe what is essentially an adjudication as an investigation and it would of course require the full application of the fair procedure requirements. (Although I am aware of a process within a large multinational where an internal appeal against redundancy is described as ‘an investigation appeal’).

 But in all these cases there were defects.

In McLoughlin the investigators were held to have produced a reasoned determination of the case, in Giblin the investigation team was charged with deciding on Mr Giblin’s case and on a sanction, which could include dismissal and in O’Sullivan v. Mercy Hospital Cork the investigator produced adverse findings against the plaintiff employee without her being notified that this was happening; all offending the sanction rule.

In passing, there is some comfort in Judge Laffoy’s comments for owner managers conducting disciplinary proceedings in small businesses where compliance with SI 146/2000 (a document whose authors appear to have overlooked SME’s) can be very difficult, in relation to an appeal for example. (See also Mooney v An Post where the difficulties in complying with rigorous standards of fair procedure were sympathetically reviewed by Keane J. where he said that ‘the two great central principles – audi alteram partem and nemo iudex in causa sua – cannot be applied in a uniform fashion to every set of facts.)

I am more concerned here with the practise of external investigators.

If we can turn to Doherty & Anor v HSE [2008] IEHC 331 the court was addressing a different matter there which turned on the distinction between serious and gross misconduct.

But in this case the terms of reference of the investigator permitted a finding as to whether the allegations represented serious misconduct, which would then be followed by a disciplinary hearing to decide on sanction (so stopped short of the error in McLoughlin, Giblin and the Mercy Hospital, and fell within the ‘Minnock principle’).

So legally speaking this ought to be acceptable on the basis of Judge Laffoy’s observations in Giblin and subject to fair procedure rights being observed, as it meets the criteria outlined in O’Brien and Minnock in avoiding imposition of a sanction.

However, an assignment as an investigator, (or an investigator only) on this basis is something that should be considered carefully.

It is hard to know why any employer (a large employer in particular) would suffuse the two stages of the process rather than keeping clear water between its investigation and disciplinary stages and avoiding this rather odd hybrid adjudication process.

While it is technically true on the basis of the authorities reviewed here that a finding of serious misconduct is not per se ‘a sanction’ it brings a respondent to the edge of the sanction precipice. Viewed from the perspective of employment law or HR practitioners a conclusion on misconduct and a decision on sanction are much closer bedfellows than any link between a finding of fact resulting from an investigation and a conclusion on misconduct.

For example, a finding of serious misconduct automatically triggers a sanction as it is difficult to imagine any situation where it would not. The two are inextricably linked.

There does not appear to be any logic in separating the finding on conduct from the application of an appropriate remedy, and none in allowing it to be done outside the parameters of the recognised disciplinary procedures.

Indeed the opposite approach seems more logical. Investigations have been compared to the compilation of a ‘book of evidence’. To continue this analogy it would be absurd to separate a decision on guilt in the courts from the passing of a sentence.

Further, it will be recalled that in O’Brien v Aon Insurance Managers the court appeared willing to ignore ‘infirmities’ in the investigation provided the respondent had the right to have the full disciplinary hearing consider all facts ‘afresh’ and have the benefit of fair procedure applied at the hearing where they would be considered. This was seen as correcting ‘infirmities’ in the investigation and it underpins the clear water needed between the two processes and suggests that, even allowing that single ‘inquisitorial processes’ might escape adverse judicial attention separate is safer.

That said, in Minnock the court intervened to grant an injunction on the basis that the investigator did not confine himself to the ‘pure evidence gathering’ to which the rules of natural justice do not apply and was prepared to reach ‘findings’. Where exactly this stepped over a line of which the court disapproved is not clear, but it seems likely to have been a result of the defect in the Terms of Reference.

In any event even if it can be said that a finding of misconduct lies between a ‘pure investigation’ but falls short of a sanction it is too close for comfort to the latter for safety, or, in any case for best practise for investigators.

It may be of interest, if not legally then in relation to the practicalities of setting up and running the investigation that the plaintiffs in a number of these cases were very senior employees. O’Brien was MD of Aon, in Cribbin v PLC Ingredients the plaintiff was a Director and a 25% shareholder, McLoughlin was the General Manager in Setanta. It may be that the set up and planning of a workplace investigation in such cases requires greater care and attention to detail than with other employees, if only because if aggrieved they are more likely to reach for a legal remedy.

In Cribbin for example the investigator was a Senior Counsel, not normal in a workplace investigation, (although he was eventually discharged for failure to complete his report in time; perhaps a reminder to include the ‘due dispatch’ obligation that falls on arbitrators in any ‘CIArb Investigation Rules’.) There are defined time limits in the public service dignity at work ‘Positive Working Environment’ policy, for example, although they may be extended relatively easily by notification to the parties).

(See also cases related to delay (not included in this post); notably UD 705/2008 where the Employment Appeals Tribunal set out some guidelines on delay)

On a related point, investigators are often asked in Dignity at Work investigations to reach conclusions on facts AND whether they meet the definition of bullying.

Is this much different in principle to a finding of misconduct? Unlike misconduct there are some criteria against which bullying can be assessed and normally even a finding on bullying goes to the first stage of a disciplinary process anyway, or may even enter a mediation process.

Misconduct involves a much greater element of value judgement, often particular to the employment and is a form of adjudicative activity more associated with the formal disciplinary process both in practice and under the terms of procedures drafted under the Statutory Instrument on Grievance and Discipline SI146/2000).

As it turns out the decisions of the courts so far in relation to a finding of misconduct by an investigator would seem to protect a finding of bullying also so, given that it is even one further stage removed from the danger of a sanction than a finding of misconduct it is likely that the reservations expressed here about findings of misconduct do not apply to bullying.

Other issues which may arise under fair procedure requirements are entitlement to representation, sight of witness statements, etc. It is submitted that these should form part of a best practise model of conduct of investigations, although as with workplace discipline in general entitlement to legal representation is not favoured, and indeed provided the process falls within the Minnock decision principles it would appear not required (But see Burns v Governor of Castlerea Prison [2009] IESC 33)

There is much more, and I have not touched here on items 3-7 in the list on page one, although I have assembled a number of cases on all those topics. But I trust this brief survey of a important aspect of the legal principles which will form part of our future training of investigators has been of interest.

Also bearing in mind that many of the dicta referred to in this paper might be regarded as obiter or fact sensitive the professional standard for the investigators we train and recommend in CIArb should be sufficiently robust and watertight to withstand a more direct challenge in the future.

Our task now is to proceed from this understanding of the law in relation to investigations to construct professional standards which take the legal principles as a minimum but build on them to create a high, and recognisable standard for the practise of workplace investigations.

Pat Brady FCIArb

First delivered March 8th 2013

Posted May 12th 2013

Suggested Reading

  • Investigating complaints in the workplace-law and best practice

Paul Glenfield, Matheson Ormsby Prentice

  • Investigations in the workplace,

Terence McCrann , McCann FitzGerald Solicitors

  • Disciplinary Procedures; the pitfalls of a flawed Investigation

Kieran O’Callaghan BL in ‘The Parchment’ DSBA, Spring 2013

  • Workplace Investigations,

Dominic Wilkinson BL, in IRN 46/2006

Posted in Arbitration, Bullying, Constitutional law, Employment Law, Employment Law/HR, Human Resources, Mediation | Tagged , , , , , , , , , | Leave a comment

The Workplace Investigation and the Law. Part 2

While avoiding unnecessary scrutiny by the High Court is a prudent consideration for any of us, this is not a defensive exercise only. We should seek to go beyond that thinking and move towards developing a best practise model that would be legally watertight for the long term but moreover provide comfort to the parties involved that they were getting the exercise they had signed up for, and contribute to a resolution of the issue in hand (or at least not make it more difficult).

This model should resemble for investigators what the Chartered Institute of Arbitrators standards and rules provide for arbitrators and mediators. (These can be viewed at www.arbitration.org)

Indeed, where investigations have been the subject of scrutiny and adverse review by the courts or the tribunals some of the problems might simply be said to represent generally poor standards of professionalism in the conduct of an investigation (while of course there are many highly professional investigators doing excellent work).

For example, in the Minnock case discussed below it appears that neither the employer nor the investigator saw fit to produce proper Terms of Reference for the investigation and this became a factor in the court in intervening in the process, (or as it described it there was a ‘failure to set out what the process was going to be’).

Similar failures were criticised by Laffoy J. in Cribbin v PLC Ingredients.

While ensuring a high standard of professionalism in the management and conduct of these investigations would instil confidence in the investigation process and in CIArb accredited practitioners among those who require their services, it would also, as a consequence keep those practitioners well clear of legal hazards. This is not least because the requirements of a well conducted investigation in most respects will exceed the demand of fair procedure in any case.

In fact I would favour the production of a document along the lines of the Institute’s Arbitration or Mediation rules which clearly states for the public benefit the standards to which CIArb practitioners would be accountable.

I won’t dwell on the jurisprudence in relation to fair procedure with this audience.

These are some of the cases which have given our citizens the constitutional protections which they now enjoy; the principle well summed up in Glover as requiring ‘the machinery for taking decisions which may affect rights or impose liabilities [to] be construed as providing for fair procedure.

  • In re Haughey [1971] IR 271
  • Glover v BLN [1973] IR 388
  • State (Gleeson) v Minister of Defence
  • Cassidy v Shannon Castle Banquets
  • Gallagher v the Revenue Commissioners
  • Delaney v Central Bank [2011] IEHC 212

I might pause at Delaney not to deal with the decision in this case which extended the fair procedure standard to decisions of medical practitioners in certain circumstances but for another, cautionary reason of interest to workplace investigators and this presentation.

Judge Laffoy referred to the Investigator by name thirty-nine times in the course of her judgement, and otherwise another nine times. So further reason for ensuring that you should not set sail lightly on the seas of workplace investigations. You need to carry out your work (as the investigator did in this case and the court found no fault with him) knowing that this degree of scrutiny is a possibility.

In this paper I would like to reflect on some of the issues which have arisen regarding the applicability of fair procedure to the investigation phase of the process itself and the following cases are relevant.

 Minnock v. Irish Casing Co. Ltd. and Stewart [2007] ELR 229

O’Brien v. AON Insurance Managers (Dublin) Ltd. [2005] IEHC 3

Morgan v TCD [2003] 3 I.R. 157

Looking at the Minnock case Clarke J. said that ‘as a matter of law the authorities are beginning to settle on the appropriate test to be applied in cases of this nature’, and went on to describe the spectrum of ‘preliminary inquiries’ that may be carried out (preliminary to disciplinary proceedings in this case).

At one end he located ‘the pure investigation’ where no findings of any sort are made by the investigator (other than that a formal disciplinary process is warranted) to the other end of the spectrum where the investigator gathers the facts and makes formal findings.

Clarke J. made it is clear that the authorities say a pure investigation which does not involve any findings whatsoever is not a matter to which the rules of natural justice apply. It is not therefore a matter appropriate for the court to intervene.

On the other hand, where an investigator is permitted to make findings, the court said that it appears to be settled from the majority of the authorities that the rules of natural justice do apply and the court may well need to consider if it is appropriate to intervene where there is evidence to suggest the manner in which the investigation is being carried out is seriously flawed.

This opens the obvious question as to the definition of ‘a finding’. It would be hard to imagine an investigator’s report without findings in the ordinary sense of the word.

Fortunately, this was addressed in the earlier case of O’Brien v AON Insurance Managers (Dublin) Ltd. [2005] IEHC 3 where again Clarke J (relying on dicta in Morgan v TCD [2003]3 I.R. 157 per Kearns J) said that where the recommendations of the investigators report do not ‘amount to a sanction’ Haughey rights do not apply especially as the plaintiff would still be entitled to have all these matters considered at a later disciplinary hearing.

 He said that this was the case that even if there were ‘infirmities’ in the investigation which affected the report of the investigator because it did not amount to a sanction that would require the court to intervene. (See also UK EAT case Santamera v Express Cargo Forwarding t/a IEC Ltd (2003) IRLR 273 where it was held that an investigation will not be unfair even if individual components were.)

On this basis adherence to the principles in Judge Clarke’s summary of the law in Minnock are obviously the safest bet for an investigator.

 In the next piece I will discuss cases which stray beyond the pure investigation

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The Workplace Investigation and the Law Part 1

Paper delivered to a conference organised by the Chartered Institute of Arbitrators, the Irish Association of Women Lawyers, Arbitral Women and the Law Society on Conflict Resolution: Celebrating Women as ADR Leaders

The bungled workplace investigation ‐ a look at the pitfalls of poorly investigated conflict and the real cost of badly managed complaints.

This is the first of three installments of this paper that I will publish in the coming days

Background

The Chartered Institute of Arbitrators is a broad church of dispute resolvers across many professions; construction, the law, financial services, other commercial sectors and the employment sphere. Our members are arbitrators, construction adjudicators, mediators and practise other dispute resolution processes.

Until now, we had no quality assured standards, panels or approved training in the way we do with other dispute resolvers. (Neither incidentally has anyone else but we decided to do something about it.)

We have done so by developing a course in workplace investigations and our ambition is to offer the legal profession, employers and others who seek it the comfort of a unique cadre of practitioner investigators trained to a good standard exactly as we do with arbitrators and mediators.

First we had to define the skillset needed for the conduct of an investigation; from the planning and set up stage through case management, interviewing techniques including with vulnerable interviewees, decision making and report writing.

Because workplace investigations are often linked to the disciplinary process the general framework of the law on discipline and dismissal overarches all of this. Indeed there is now something one might describe as the law relating to workplace investigations as a sub set of employment law. For example, a recent (Unreported so far, 21st December 2012) High Court decision: Patrick Kelly v Minister for Agriculture and Others addressed the obligation to provide witness statements during an investigation. (per Hedigan J.)

With a number of distinguished exceptions (and some further reading will appear at the end of the final piece) this has not yet got the detailed attention it deserves. Our purpose was not to add to the academic study of the law but to provide practitioners with practical guidance on pitfalls they should avoid, and to assist us in developing a best practice model for the conduct of investigations.

The starting point was to identify those potential problems which could result in adverse consequences for the workplace investigation (and investigator). This is ‘work in progress’ as decisions of the EAT, for example are a nightmare for the researcher as the EAT database is not searchable by case type. This is happily going to change as part of the reform of the Employment Rights bodies.

Why an investigation? Lets start not at, but just before the beginning. Why is investigation needed at all?

It is important to answer this question initially for HR professionals who are likely to make the first decision on this.

It is now quite common to include a commitment to hold an investigation as part of the disciplinary procedure incorporated in Contracts of Employment. In such cases the employee has a contractual right to an investigation

It may be required by Codes of Practice (on bullying, for example,) or by best practice compliance with fair procedure requirements, bearing in mind the relationship to possible later disciplinary procedures; a point discussed later.

In the case of a possible dismissal the Unfair Dismissals Act 1977 says at section 6 (1)

Subject to the provisions of this section, the dismissal of an employee shall be deemed, for the purposes of this Act, to be an unfair dismissal unless, having regard to all the circumstances, there were substantial grounds justifying the dismissal.

The EAT has said: “In deciding whether or not the dismissal of the claimant was unfair we apply a test of reasonableness to:

  • the nature and extent of the enquiry carried out by the respondent prior to the decision to dismiss the claimant, and
  • the conclusion arrived at by the respondent that, on the basis of the information resulting from such enquiry, the claimant should be dismissed

Hennessy v Read & Write Shop Ltd UD 192/1978

And this case was noted with approval more recently in Michael Morales v Carton Bros UD 835/2011 although in that case the employer was held to have reached a disproportionate conclusion despite having had a good investigation, in other words failing to meet the ‘substantial grounds’ test in the Unfair Dismissals Act.

The UK EAT (which it should be noted is a division of the High Court) has similarly held;

First of all, there must be established by the employer the fact of that belief; that the employer did believe it. Secondly, that the employer had in his mind reasonable grounds upon which to sustain that belief. And thirdly, we think, that the employer, at the stage at which he formed that belief on those grounds, at any rate at the final stage at which he formed that belief on those grounds, had carried out as much investigation into the matter as was reasonable in all the circumstances of the case. British Home Stores v Burchell (1980) ICR 303 EAT

(For other UK authorities on investigations see Midland Bank v Madden (2000) ICR 1283 CA, Garry V London Borough of Ealing (2001) IRLR681 CA Tesco Stores Ltd v Pryke (2006) EAT)

So for the purpose of informing any disciplinary proceedings against an employee in addition to the considerations above it is obviously important that an employer is sure of the relevant facts before pressing on with those proceedings.

(On the issue of suspension pending an investigation see Khan v HSE [2008] IEHC 234 and McNamara v South Western Health Board [2001] IEHC 24. Essentially the applicability of fair procedure turned as in the cases below on whether the suspension added up to a sanction).

But returning to the pitfalls the following agenda of headings emerged as needing attention in developing an understanding of the law and investigations.

  1. Fair procedure
    1. General principles
    2. Applicability to Investigations
    3. Suspension pending investigation
  2. Crossover into disciplinary
  3. Failure to carry out investigation
  4. Inadequate/Flawed investigation
  5. Delay
  6. Independence of Investigator
  7. Standard of proof

While avoiding unnecessary scrutiny by the High Court is a prudent consideration for any of us, this should not be a defensive exercise only. We want to go beyond that thinking and move towards developing a best practise model that would be legally watertight for the long term but moreover provide comfort to the parties involved that they were getting the exercise they are entitled to get, and contribute to a resolution of the issue in hand.

It should resemble for investigators what the Institute’s standards and rules provide for arbitrators and mediators. (These can be viewed at www.arbitration.org)

In the next piece I take a brief look only at one of these issues; how fair procedure principles impact on the investigation.

Posted in Arbitration, Arbitration/ADR, Employment Law, Employment Law/HR, Human Resources, Mediation | Tagged , , , , , , | Leave a comment

The Tweets you may have missed!

A selection of my contributions on Twitter in the last week. The world in 140 characters!

You can follow me @workplacesols

  • UK Government has issued details of plans for mandatory pre-claim conciliation for employment tribunals; a sensible idea. Mediation works!
  • This is getting serious. Government insists it will pass  laws on pay cuts  if unions reject deal    ‪http://www.irishtimes.com/news/politics/government-insists-it-will-pass-laws-on-pay-cuts-if-unions-reject-deal-1.1360202#.UWur2SLCSFk.twitter … via ‪@IrishTimes
  • Very disappointing that Mediation Bill will not be published until 2014. Our presidency of the EU will get the blame but it’s needed soon
  • Avoiding conflict, managing & resolving workplace disputes! ‪http://www.workplacesolutions.ie  If you’re still awake
  • It would be interesting to hear a perspective on Croke Pk 2 from the dole queue! Particularly the protection of wages up to €65k.
  • CIArb Ireland organising an ‘introduction to Mediation’ course. May 23rd. Dublin. More on ‪http://www.arbitration.ie/events 
  • House Bill to close US National Labor Relations Board will not be taken up by the Senate, but a clear message about the future of the NLRB
  • New Jersey & NY set up voluntary mediation programme for insured victims of Superstorm Sandy with “open & unresolved 1st party insurance claims.
  • 9/10 top global pharma co’s operate in Ireland. Novartis to create 100 medical comms & digital marketing jobs in new Dublin business centre
  • Staff handbooks are a great resource for employees & employers. But does anyone ever read them before they show up as evidence at a tribunal
  • EU Court of Justice rules women and men must be equally treated when it comes to early retirement support to ‪#farmers:‪http://bit.ly/ZR62z0 
  • UK CA rethink on Halsey mediation rules comes as Sup Ct J. Clarke says guidance to cts on referral to med wd be helpful. At launch of ‪#DDRC
  • English Court of Appeal suggests a rethink of the prohibition on court-ordered compulsory mediation ‪http://www.lexology.com/library/detail.aspx?g=c9169662-5819-4557-93a2-f0ed85d7e873#.UWex9JNW7Ww.twitter …
  • New EU Directive on consumer ADR imminent. Retailers should get ready! it’ll be a ‘Trust Mark’  ‪#ADR ‪#DDRC
  • Ironic how judiciary is such strong advocate of ADR while business twiddles its thumbs & stumps up the legal costs! Are yiz mad? ‪#DDRC ‪#ADR
  • Disappointing news. Minister Shatter says Mediation Bill won’t be published until early 2014. At launch of Dublin Dispute Resolution Centre
  • Shatter says Ireland can become centre for international arbitration & dispute resolution.  Dublin Dispute Resolution Centre ‪#DDRC launch
  • Courts can only decide legal rights; mediators have many more tools! Clarke J. At launch of Dublin Dispute Resolution Centre. ‪#DDRC ‪#ADR
  • The Dublin Dispute Resolution Centre DDRC (opening this evening) will also promote Ireland as a seat for international arbitration
  • 51 organisations worldwide certified as ‘Democratic Workplaces’ ‪http://shar.es/JarDe  via ‪@sharethis
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