Key Facts
- •Ervin Dean (Appellant) was employed by Bahamas Power & Light (Respondent) for 30 years before his dismissal in 2017.
- •His employment was governed by an Industrial Agreement which allowed termination with reasonable notice or payment in lieu, stating that the Corporation 'shall not, however, terminate an employee unjustly'.
- •Dean was dismissed without cause and given the statutory minimum payment in lieu of notice.
- •Dean sued for breach of contract, alleging insufficient payment in lieu of notice and unjust dismissal.
- •The trial judge awarded damages based on a 74-month multiplier, representing the unexpired term of employment until retirement.
- •The Court of Appeal reduced the damages to 18 months, finding the trial judge's assessment unreasonable.
- •Dean appealed to the Privy Council.
Legal Principles
In The Bahamas, wrongful dismissal depends on breach of contract, while unfair dismissal is a statutory right under the Employment Act 2001.
Employment Act 2001, section 34
The Employment Act 2001 sets a minimum standard for employee rights, not a maximum; more generous contractual terms can prevail.
Employment Act 2001, section 4
At common law, an employer can terminate an employee's contract with proper notice for any reason, or no reason.
Ridge v Baldwin [1964] AC 40
In assessing reasonable notice for wrongful dismissal, various factors are considered (age, length of service, status etc.), but none are determinative.
Industrial Agreement, Article 14(2)
Appellate courts should only interfere with a trial judge's assessment of damages if there's an identifiable flaw in their reasoning.
R (R) v Chief Constable of Greater Manchester Police [2018] UKSC 47
The burden of proving a failure to mitigate loss in wrongful dismissal cases lies on the employer.
Armstead v Royal & Sun Alliance Insurance Company Ltd [2024] UKSC 6
Outcomes
The Privy Council dismissed Dean's appeal.
The trial judge's 74-month damage assessment was wrong in principle and unreasonable. The Court of Appeal's 18-month assessment was within a reasonable range.
The 'unjustly' clause in the Industrial Agreement does not create a separate cause of action.
It's a contractual reminder of existing statutory unfair dismissal rights, not a separate right imposing additional obligations on the employer.