Shaw v B&W Group Ltd (Contract of Employment : no sub-topic) [2012] UKEAT 0583_11_1705 (17 May 2012)

Shaw v B&W Group Ltd (Contract of Employment : no sub-topic) [2012] UKEAT 0583_11_1705 (17 May 2012)

In wrongful dismissal cases, 'due cause' requires the employer to prove the employee actually committed a repudiatory breach (gross misconduct); a reasonable belief is insufficient. The Employment Tribunal erred by conflating the tests for unfair and wrongful dismissal.

Citation
[2012] UKEAT 0583_11_1705
Parties
Appellant/claimant: Mr Shaw; Respondent/employer: B&W Group Ltd
Jurisdiction
United Kingdom
Judgment Date
17 May 2012
Procedural Posture
Employment Appeal / Appeal From Employment Tribunal Decision, Remitted for Rehearing
Outcome
Appeal allowed; case remitted for rehearing
Legal Topics
Wrongful Dismissal, Breach of Contract, Summary Dismissal, Gross Misconduct, Damages
Employment Law Contract Law Wrongful Dismissal Breach of Contract Summary Dismissal Gross Misconduct Damages

Case Brief

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Parties

Mr Shaw

Appellant/claimant

B&W Group Ltd

Respondent/employer

Procedural Posture

Employment Appeal / Appeal From Employment Tribunal Decision, Remitted for Rehearing

Legal Issues

  1. 1 Whether 'due cause' in the employment contract requires actual proof of gross misconduct or merely a reasonable belief by the employer
  2. 2 Whether the Employment Tribunal applied the correct legal test for wrongful dismissal

Ratio Decidendi

In wrongful dismissal cases, 'due cause' requires the employer to prove the employee actually committed a repudiatory breach (gross misconduct); a reasonable belief is insufficient. The Employment Tribunal erred by conflating the tests for unfair and wrongful dismissal.

Court Disposition

Appeal allowed; case remitted for rehearing

Orders

  • Case remitted to the same Employment Tribunal (or a new one if not practicable) to reconsider whether the claimant was dismissed for due cause, applying the correct legal test.
  • If not dismissed for due cause, Tribunal to determine entitlement to six months' compensation, crediting any sums already paid, and to consider any loss from breach of dismissal procedures.