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You are here: BAILII >> Databases >> England and Wales Court of Appeal (Civil Division) Decisions >> Foreign and Commonwealth Office & Ors v Bamieh [2019] EWCA Civ 803 (09 May 2019) URL: http://www.bailii.org/ew/cases/EWCA/Civ/2019/803.html Cite as: [2020] ICR 465, [2019] EWCA Civ 803, [2019] IRLR 736, [2019] WLR(D) 269 |
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ON APPEAL FROM THE EMPLOYMENT APPEAL TRIBUNAL
The Hon. Mrs Justice Simler
UKEAT/0268/16/RN, [2018] UKEAT 0268_16_0119
Strand, London, WC2A 2LL |
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B e f o r e :
LORD JUSTICE LEWISON
and
LORD JUSTICE SINGH
____________________
(1) Foreign and Commonwealth Office (2) Catherine Fearon (3) Jonathan Ratel |
Appellants |
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- and - |
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Maria Bamieh |
Respondent |
____________________
Spencer Keen and Rosalie Snocken (instructed by Emmanuelle Raoult, EU Legis) for the 2nd and 3rd Appellants
Christopher Milsom and Nathan Roberts (instructed by Peter Daly, Bindmans LLP) for the Respondent
Hearing dates : 26 and 27 March 2019
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Crown Copyright ©
LORD JUSTICE GROSS :
INTRODUCTION
"….any person who reports or discloses information on a threat or harm, to the public interest in the context of their work-based relationship…."
As explained in Whistleblowing (ibid), there has been a sea change in the cultural perception of the value of whistleblowing. However, whatever the cultural shift domestically, it could not be said that there was an international consensus in this regard. Thus, at all material times, there has been no EU Directive on whistleblowing.
"47B Protected disclosures
(1) A worker has the right not to be subjected to any detriment by any act, or any deliberate failure to act, by his employer done on the ground that the worker has made a protected disclosure.
(1A) A worker ('W') has the right not to be subjected to any detriment by any act, or any deliberate failure to act, done –
(a) by another worker of W's employer in the course of that other worker's employment….
on the ground that W has made a protected disclosure.
(1B) Where a worker is subjected to detriment by anything done as mentioned in subsection (1A), that thing is treated as also done by the worker's employer.
(1D) In proceedings against W's employer in respect of anything alleged to have been done as mentioned in subsection (1A)(a), it is a defence for the employer to show that the employer took all reasonable steps to prevent the other worker –
(a) from doing that thing, or
(b) from doing anything of that description.
48 Complaints to employment tribunals
(1A) A worker may present a complaint to an employment tribunal that he has been subjected to a detriment in contravention of section 47B."
"43B Disclosures qualifying for protection
(1) In this Part a 'qualifying disclosure' means any disclosure of information which, in the reasonable belief of the worker making the disclosure, tends to show one or more of the following –
(a) that a criminal offence has been committed, is being committed or is likely to be committed,
(b) that a person has failed, is failing or is likely to fail to comply with any legal obligation to which he is subject,
(c) that a miscarriage of justice has occurred, is occurring or is likely to occur…..
(f) that information tending to show any matter failing within any one of the preceding paragraphs has been, is being or is likely to be deliberately concealed.
(2) For the purposes of subsection (1), it is immaterial whether the relevant failure occurred, occurs or would occur in the United Kingdom or elsewhere, and whether the law applying to it is that of the United Kingdom or of any other country or territory."
It has not been suggested that the extraterritorial element contained in s.43B(2) assists in the resolution before us.
THE FACTS
"...to assist the Kosovo Institutions, Judicial Authorities and Law Enforcement Agencies in their progress towards sustainability and accountability in further developing and strengthening an independent multi-ethnic justice system and…ensuring that these institutions are free from political interference and adhering to internationally recognised standards and European best practices."
"…..Mission chain of command and shall act in the sole interest of the Mission."
However, while disciplinary control over staff rested with EULEX, disciplinary action would be exercised by, and the responsibilities of employer remained with, the seconding home state: OPLAN, para. 5.2.2. The Joint Action provided (in Arts. 8.6 and 10.2):
"8.6: the Head of Mission shall be responsible for disciplinary control over the staff. For seconded staff, disciplinary action shall be exercised by the National or EU Authority concerned…
10.2: the State…having seconded a member of staff shall be responsible for answering any claims linked to the secondment, from or concerning a member of staff. The State shall be responsible for bringing any action against the seconded person."
"Staff members will not improperly disclose confidential information obtained as a result of their work with the Mission…..
Confidential information means all information that has been accorded an official EU classification level, as well as the identities of individuals, political information, operating procedures or any other information that may cause prejudice to the security of individuals, information that may cause public danger, disorder or crime, or information that may cause damages to the Mission or its reputation.
Improper disclosure means disclosure that was not within a staff member's general delegated authority to disclose, or which was not expressly authorised by a superior officer.
It is the obligation of staff members to report through the chain of command any cases of malpractice, corruption and incompetence.
Statements by staff members to the press, newspapers, radio or television or any other media are not permitted, unless proper authorisation from the HoM or his designate has been obtained through the chain of command."
"7.1 It is the right and obligation of all staff members to report cases of malpractice, misconduct, incompetence and criminal acts.
7.2 All alleged breaches of the COC…and other applicable rules and regulations must be reported, normally through the chain of command to the HoM, and if the source of information is a staff member, the report must be submitted in writing.
If a staff member discovers information about another staff member that may be a breach of this Code…[or] other applicable rules and regulations, or that have serious implications for the Mission, he/she will not disclose that fact to any other person other than his/her direct supervisor or a member of the mission hierarchy that is entitled to deal with or give advice regarding the case in question….."
"…report to, and be obliged to, take lawful instructions from the manager appointed to you by …EULEX Kosovo."
The contract contained provisions as to the Respondent conducting herself in a manner "consistent with your position as a representative of Her Majesty's Government…". Cl. 18 provided that she was bound by the Official Secrets Act 1989. The Respondent was further bound by the provisions on Staff Conduct for full-time FCO staff, annexed to her contract. So too, EULEX Standards of Conduct for personnel was applied to the contract "on a contractual basis"; the COC was thus incorporated in the Respondent's contract. Cl. 27 stipulated that the contract was governed by English law and was subject to the exclusive jurisdiction of the English Courts and Employment Tribunals.
"She is a typical example of a worker in a pan-European environment. Her predecessor was French and her line manager was the HOM."
As found by EJ Wade, Ms Fearon had virtually no direct contact with the Respondent during their secondments, though she advised the HoM about the Respondent's "actions and behaviours" when issues arose in 2014 as part of her (i.e., Ms Fearon's) job and commented on how the situation might be perceived by the FCO. EJ Wade added this (ibid):
"It was apparent…that she [Ms Fearon] saw herself as loyal to EULEX first and FCO second."
Ms Fearon too was employed by the FCO pursuant to a series of secondment contracts, on broadly similar terms to the Respondent's contracts, save that she was engaged as Special Adviser to the EULEX HoM. As with Mr Ratel, Ms Fearon's work was performed wholly outside the UK and wholly in Kosovo.
"First, Ms Fearon and Mr Ratel are FCO secondees…and, furthermore, if they fall within scope the FCO as their employer may be vicariously liable for their acts and omissions. Second, the outcome has wider implications for other secondees from the FCO and other government departments, bodies, law enforcement agencies and armed services to rule of law or peacekeeping missions led by the EU and other international and regional organisations."
THE ET JUDGMENT
"….The inescapable fact is that although they were FCO employees, for the purpose of this mission they were not domiciled in the UK or based there for work purposes. They are more accurately described as 'citizens of the world' who happened to have British nationality and to be under contract to the FCO…."
"…was uncomfortable that they could be outside scope when they and the Claimant [i.e., the now Respondent] are all fellow employees of FCO but as individual respondents their base was in the international world that was EULEX not the territorial bubble of the UK."
Thus, the complaints against Ms Fearon arose because (at [55]) "…of her role as advisor to the Italian HoM and…she saw her role as supporting him and not as an instrument of the FCO". Her relationship with the Respondent was not founded on the fact that they were both FCO employees.
THE EAT JUDGMENT
"The starting point in considering whether the Employment Tribunal has territorial jurisdiction in respect of claims made by the Claimant against her fellow FCO-seconded workers under the ERA is that ordinarily the statute has no application to work outside Great Britain. Parliament would not have intended the ERA to apply unless there was a sufficiently strong connection with Great Britain and British employment law. That starting point must therefore be displaced by the sufficiently strong connection said to exist before extraterritorial jurisdiction can …be established."
The "sufficiently strong connection" test was derived from a line of authority (referred to by Simler P at [104] – [108]) dealing with claims by employees against employers for unfair dismissal and to which I shall return below.
"…the question of the territorial reach of the detriment provisions in s.47B(1A) ERA required an assessment of the sufficiency of the connections between each individual Respondent [i.e., co-worker] and Great Britain and British employment law by analogy with the approach required to be adopted where the employer is the only respondent. The question was not conclusively determined by reference to their base; and nor was it relevant to consider the individual Respondents' connections to EULEX (as opposed to another system of law and jurisdiction such as Kosovo)."
Because EJ Wade had treated the co-workers' domicile and base as dispositive, she had not conducted (at [115]) "…the assessment required of the extent and sufficiency of the connections between them and Great Britain and British employment law".
i) First, that the co-workers were working in Kosovo pursuant to a series of secondment contracts with the FCO, on the terms already set out.
ii) Secondly, those contracts were governed by English law. Just as the Respondent was entitled to the protection of the ERA in relation to her employer, the FCO, because of her sufficiently close connections with Great Britain and British employment law, so the co-workers would be entitled to that same protection if subject to treatment capable of being challenged under the ERA. It was, Simler P said, "…difficult to see why their expectation would or should be different in relation to claims made against them under the ERA".
iii) Thirdly, the position of EULEX was analogous to an international enclave which had no particular connection with the country in which it happened to be situated. The Respondent and the co-workers were treated differently from locally employed members of staff. In this regard, Simler P highlighted their links to the FCO.
iv) Fourthly, Art. 10.2 of the Joint Action itself recognised "the connection between seconded members of staff and their seconding state".
"....The individual Respondents are not sued by virtue of their employment relationship with the Claimant under s.47B(1A) ERA but as co-workers of the FCO in the course of their employment by the FCO. There is no other system of law with which either can be said to be connected, still less closely connected. If as a result of their own especially strong connections with…Great Britain and British employment law it can be said that Parliament would have regarded it as appropriate for an employment tribunal to deal with claims against them under the ERA, that is sufficient to displace the general rule that the place of employment is decisive in determining territorial jurisdiction under the ERA…."
Simler P did not regard it as anomalous that the co-workers came within the scope of the ERA whereas others (such as Ms Novotna) did not. Moreover, further differing from EJ Wade (ibid), it was not a question of Art. 10.2 of the Joint Action only conferring jurisdiction for claims against the FCO. Art. 10.2 did not give the ET jurisdiction at all; it attributed responsibility for seconded staff members to the seconding state. The basis for the ET having jurisdiction with regard to the co-workers turned (ibid) on "the exceptional circumstances of this case notwithstanding the fact that the work done by the individuals concerned is performed wholly outside Great Britain".
THE RIVAL CASES
"It is not for the UK to impose its policy solutions on other States or international organisations made by collectives of States by applying that legislation extraterritorially to international work places over which it exercises no control. In this sense it is analogous to British health and safety legislation: no one would suggest that it applies in Kosovo as between FCO secondees working in EULEX but not between them and other EULEX staff. "
DISCUSSION
"It is inconceivable that Parliament was intending to confer rights upon employees working in foreign countries and having no connection with Great Britain…..Putting the question in the traditional terms of the conflict of laws, what connection between Great Britain and the employment relationship is required to make section 94(1) the appropriate choice of law in deciding whether and in what circumstances an employee can complain that his dismissal was unfair? The answer to this question will also determine the question of jurisdiction, since the employment tribunal will have jurisdiction to decide upon the unfairness of the dismissal if (but only if) section 94(1) is the appropriate choice of law."
"The general principle of construction is, of course, that legislation is prima facie territorial. The United Kingdom rarely purports to legislate for the whole world. Some international crimes, like torture, are an exception. But usually such an exorbitant exercise of legislative power would be both ineffectual and contrary to the comity of nations. This is why all the parties are agreed that the scope of section 94(1) must have implied territorial limits. More difficult is to say exactly what they are…..section 94(1) provides an employee with a special statutory remedy. Employment is a complex and sui generis relationship, contractual in origin but, once created, having elements of status and capable of having consecutive or simultaneous points of contact with different jurisdictions. So the question of territorial scope is not straightforward. In principle, however, the question is always one of the construction of the construction of section 94(1). As Lord Wilberforce said in Clark v Oceanic Contractors Inc [1983] 2 AC 130, 152, it
'requires an inquiry to be made as to the person with respect to whom Parliament is presumed, in the particular case, to be legislating. Who, it is to be asked, is within the legislative grasp or intendment, of the statute under consideration'."
"The principle appears to be that the employment must have much stronger connections both with Great Britain and with British employment law than with any other system of law. There is no hard and fast rule and it is a mistake to try and torture the circumstances of one employment to make it fit one of the examples given, for they are merely examples of the application of the general principle."
"….First, as a sine qua non, their employer was based in Britain; and not just here but the Government of the United Kingdom. This is the closest connection with Great Britain that any employer can have, for it cannot be based anywhere else. Second, they were employed under contracts governed by English law;….. Although this factor is not mentioned in Lawson v Serco Ltd, it must be relevant to the expectation of each party as to the protection which the employees would enjoy. The law of unfair dismissal does not form part of the contractual terms and conditions of employment, but it was devised by Parliament in order to fill a well known gap in the protection offered by the common law to those whose contracts of employment were ended. Third, they were employed in international enclaves, having no particular connection with the countries in which they happened to be situated, and governed by international agreements between the participating states…."
"…It will always be a question of fact and degree as to whether the connection is sufficiently strong to overcome the general rule that the place of employment is decisive. The case of those who are truly expatriate because they not only work but also live outside Great Britain requires an especially strong connection with Great Britain and British employment law before an exception can be made for them.
…… The question of law is whether section 94(1) applies to this particular employment. The question of fact is whether the connection between the circumstances of the employment and Great Britain and with British employment law was sufficiently strong to enable it to be said that it would be appropriate for the employee to have a claim for unfair dismissal in Great Britain."
"….Although the principal purpose of the legislation may have been to provide a route to vicarious liability on the part of the employer, in order to fill the lacuna identified in Fecitt [i.e., Fecitt v NHS Manchester [2011] EWCA Civ 1190; [2012] ICR 372], the effect nevertheless is that the individual is rendered liable in his or her own right, irrespective of the liability of the employer…."
A form of vicarious liability was thus created for the employer but (at [30(2)] it was not absolute, as shown by the statutory defence for the employer contained in s.47B(1D) ERA (set out above).
i) At least so far as concerns s.94(1), ERA is ordinarily territorial in its application. The UK, as Lord Hoffmann trenchantly observed, rarely purports to legislate for the whole world. Ordinarily, therefore, where the place of employment is outside the UK, s.94(1) will not apply. Accordingly, the place of employment is generally decisive as to whether the employee enjoys the protection of s.94(1).
ii) That said, the general rule of territoriality (hinging on the place of employment) is capable of being displaced where the strength of the connection with Great Britain and British employment law is sufficient to do so. One such example would be a British enclave abroad, where the "British connection" outweighed any links to the local law. Accordingly, as a limiting factor on the application of ERA, territoriality is not necessarily decisive.
iii) An assessment of the strength of connection with Great Britain and British employment law is one of fact and degree calling for an intense consideration of the factual reality of the employment in question. There is no hard and fast rule; the application of the principle/s hinges on the individual circumstances.
iv) Whatever its impact on the vicarious liability of the employer, s.47B(1A) gives rise to personal liability on the part of the co-worker for whistleblowing detriment. Whereas s.94(1) is solely concerned with the relationship between employer and employee, an application of the "British connection" test in the context of s.47B(1A) must, at the least, be adapted to include consideration of the relationship between the co-workers in question. This final reflection leads directly to the fundamental divide between the parties in the appeal before us.
i) The Respondent and co-workers had never worked together in the UK; they worked together solely in Kosovo.
ii) The Respondent and the co-workers were seconded to EULEX separately not together; that they were in post together at all was a matter of coincidence.
iii) The Respondent and the co-workers were only brought into contact at all through their performance of their respective EULEX roles at theatre level - not by reason of the FCO being their common employer. They were in Kosovo, to act (as set out above) in the "sole interest of the mission" and, so far as concerned the Respondent, to report to and take lawful instructions from her EULEX manager. Thus, Mr Ratel became the Respondent's line manager in succession to a line manager who was not a FCO secondee, and himself reported to a Czech line manager, also not a FCO secondee. Ms Fearon was Special Adviser to the EULEX HoM; her predecessor was French; as EJ Wade held, when advising the HoM, Ms Fearon saw herself "as loyal to EULEX first and FCO second".
iv) No doubt but for their employment and secondment by the FCO none of the Respondent and the co-workers would have been in Kosovo at all; but the key relationship upon which the Respondent's whistleblower detriment claim against the co-workers turns arose not by reason of the FCO being their common employer but instead from the conduct of their EULEX roles.
v) In the circumstances, although the contracts of employment of the Respondent and the co-workers were governed by English law and although they all owed duties to HMG, the centre of gravity of the relevant relationship between them is to be found in the theatre level performance of their EULEX roles, rather than their underlying FCO contracts of employment.
"1. Unless otherwise provided for in this Regulation, the law applicable to a non-contractual obligation arising out of a tort/delict shall be the law of the country in which the damage occurs irrespective of the country in which the event giving rise to the damage occurred and irrespective of the county or countries in which the indirect consequences of that event occur.
2. However, where the person claimed to be liable and the person sustaining damage both have their habitual residence in the same country at the time when the damage occurs, the law of that country shall apply.
3. Where it is clear from all the circumstances of the case that the tort/delict is manifestly more closely connected with a country other than that indicated in paragraphs 1 or 2, the law of that other country shall apply. A manifestly closer connection with another country might be based in particular on a pre-existing relationship between the parties, such as a contract, that is closely connected with the tort/delict in question."
"….acts of staff management relating to staff members seconded by the Member States the purpose of which is to meet the needs of that mission at theatre level, when the EU judicature has, in any event, jurisdiction to review such acts where they concern staff members seconded by the EU institutions… "
OVERALL CONCLUSION
LORD JUSTICE LEWISON :
LORD JUSTICE SINGH :