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Dismissing due to client pressure: Employer must consider injustice to employee

 

 

Where a customer pressurises an employer to dismiss, the employer must consider whether there will be injustice to the employee and, if so, how to alleviate that injustice, before dismissing (Greenwood v Whiteghyll Plastics Ltd).

Whiteghyll Plastics is a shop-fitting business, with a number of major customers including Morrison's Supermarkets.  Greenwood, who was employed by Whiteghyll, carried out shop-fitting at Morrison's.  Whiteghyll received 3 complaints from Morrison's in quick succession and was asked to remove Greenwood from Morrison's team.  Whiteghyll considered whether there was alternative work available for Greenwood, but found that there was none.  Shortly before hand, Whiteghyll had made 9 redundancies.

After going through its dismissal procedure, Whiteghyll dismissed Greenwood.  Greenwood claimed unfair dismissal.

Decision

The Tribunal found that there was a fair reason for the dismissal, namely "some other substantial reason", and that Whiteghyll had acted fairly in dismissing for that reason.  The Tribunal said that Morrison's was an important client which had the "whip hand" such that Whiteghyll had very little choice in the matter.  The Tribunal accepted Whiteghyll's evidence that there was no alternative work available.  Greenwood appealed to the EAT.

Whilst the EAT accepted that there was a potentially fair reason for dismissal, namely pressure from an important client, it said that the Tribunal had failed to go on to consider the nature and extent of the injustice caused to the employee as a result of the dismissal.  This requires consideration of matters such as length of service, performance record and how hard it will be for the employee to find another job.   The EAT went on to say that if the employer finds that the employee has suffered serious injustice, it should consider ways of alleviating the injustice.   

The EAT remitted the case back to a different Tribunal for a re-hearing to consider the injustice point.

Implications

Dismissing at the behest of a customer can be a potentially fair reason for a dismissal, but before effecting any such dismissal, the employer must consider the extent of the injustice on the employee and what steps can be taken to alleviate the injustice.  This includes:

  • considering the employee's length of service and performance record and the difficulties that the employee will face in finding new work.  An employer will be expected to go the extra mile for an employee with long service particularly one who has an exemplary service record;
  • after considering the level of the injustice, the employer must investigate ways of alleviating that injustice.  This could include speaking to the customer to see if there is a way that the situation can be resolved without removing the employee, for example, by performance managing or re-training the employee.  If that is not possible, the employer should consider alternative work and if none is obviously available consider creative solutions such as swapping the employee with one working for another customer or perhaps finding a role for the employee that is not customer facing;
  • if no alternatives are available, the employer must remember to follow the statutory dismissal procedure before dismissing.

Greenwood v Whiteghyll Plastics Ltd
 

 
 
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