Michel Lafresière v New Mauritius Hotels Ltd (Mauritius)
[2023] UKPC 38
Ervin Dean v Bahamas Power & Light (Bahamas)
4 July 2024
[2024] UKPC 20
Privy Council
A long-time employee was fired and sued for unfair dismissal. A judge awarded him a very large payout. The appeals court reduced the payout because the first award was too high. The highest court in the UK agreed with the appeals court decision, and the fired employee received less money than he originally won. The courts also clarified that a contract phrase about 'unjust' dismissal simply meant what the law already said about unfair dismissal.
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.