British Bung Manufacturing Company Ltd & Anor v Mr A Finn
[2023] EAT 165
R Moon v Slater & Gordon UK Ltd
12 September 2024
[2024] EAT 144
Employment Appeal Tribunal
An employee appealed an Employment Tribunal decision. The appeal about unpaid bonuses failed because he argued the boss made a bad decision, not that he wasn't paid what he was owed. His harassment claim failed because the judge thought the boss acted reasonably. His unfair dismissal claim failed because losing his job was truly due to redundancy. The employer's counter-appeal about the unpaid bonuses was successful technically but didn't change the overall result.
Key Facts
- •Mr. Moon (Appellant) appealed and cross-appealed an Employment Tribunal (ET) decision regarding unlawful deduction from wages, harassment, and unfair dismissal.
- •The ET found in favor of Mr. Moon only on unfair dismissal (lack of appeal process), concluding the dismissal was due to redundancy.
- •Mr. Moon's unlawful deduction claim concerned unpaid bonuses for FY17 and FY18. The ET found his bonus entitlement was discretionary and non-contractual.
- •Mr. Moon's harassment claim centered on a February 2018 meeting where he was questioned about his fitness for work.
- •The ET rejected the harassment claim, finding the Respondent's conduct was not objectively unreasonable given the circumstances.
Legal Principles
Unlawful deduction of wages requires an identified, quantifiable sum unpaid; a claim based on an improperly exercised discretion doesn't suffice.
Coors Brewers v Adcock [2017] ICR 983
Harassment under section 26 Equality Act 2010 requires unwanted conduct related to a protected characteristic, violating dignity or creating a hostile environment; reasonableness of the effect is key.
Equality Act 2010, section 26
Unfair dismissal requires determining the reason for dismissal; redundancy is a potentially fair reason; the employer's actions are judged for reasonableness.
Employment Rights Act 1996, section 98; Abernethy v Mott Hay and Anderson [1974] ICR 323; Jhuti v Royal Mail [2020] IRLR 129
Bonus payments, even if discretionary, can constitute 'wages' under section 27(1)(a) Employment Rights Act 1996 if a specific, ascertainable sum is due and unpaid.
Employment Rights Act 1996, section 27(1)(a)
Outcomes
Appeal on unlawful deduction dismissed.
The claim was framed as a challenge to the employer's discretion, not the non-payment of a specific sum; even if the ET erred in its approach, the outcome would have been the same.
Appeal on harassment dismissed.
The ET's finding that the Respondent's conduct was not objectively unreasonable was a matter of fact and not perversity.
Appeal on unfair dismissal dismissed.
The ET correctly identified redundancy as the reason for dismissal, considering and rejecting the Appellant's competing arguments.
Cross-appeal on unlawful deduction allowed (Grounds 1 & 2).
The ET failed to properly consider whether the claim fell within the definition of 'wages' under section 27 ERA and the principles in Coors Brewers v Adcock. However, this is academic given the dismissal of the appeal.
Cross-appeal on disability-related harassment dismissed (Grounds 4-6).
The grounds were based on hypothetical findings and did not arise from the appeal.