More about constructive dismissal
James Medhurst | News4 Jul 2009
The case of Nationwide Building Society v Niblett is another well-reasoned decision by Judge Richardson which will hopefully clear up some confusion about the case of Bournemouth University v Buckland that I have highlighted in a previous post. Firstly, it emphasises that the Fairbrother line of cases, which appear to bring the reasonable range of responses test into constructive dismissal law, do not encroach upon the trust and confidence approach. Even if an employer has acted outside the range of reasonable responses, the tribunal must still determine whether or not trust and confidence has been breached.
While refusing to be drawn on the correctness or otherwise of Buckland, the judgment states that, “We find it very difficult to envisage circumstances in which an employer will be in breach of the implied term of trust and confidence unless the employer’s conduct has been unreasonable. The mere fact of unreasonable conduct is, as we hope we have demonstrated, never sufficient,” which is perfectly consistent with the approach taken by Lord Denning in the famous case of Western Excavating v Sharp.
In my view, the major source of the confusion is the idea that being outside the reasonable range of responses means something more than merely being unreasonable, an idea that is thoroughy rejected in this case. Judge Richardson states that a range of reasonable responses means nothing more than that there is more than one reasonable way of doing things. An analogy can be drawn with negligence where, in road traffic accident cases, there is usually only assumed to be one thing that a reasonable driver would do while, in clinical negligence cases, there may be more than one reasonable body of medical opinion which a doctor could follow. Managing employees is more complicated than driving but is probably less complicated than medicine so the decisions of employers are somewhere in between.
However, this does not quite explain the decision in Fairbrother because, in that case, the tribunal had found that the employer had acted unreasonably. The problem is that, although the Employment Appeal Tribunal referred to a range of reasonable responses, it was really applying a distinct but overlapping concept of unfair dismissal law, the idea that a process can overall be fair, notwithstanding the fact that it contains elements of unreasonableness. For example, a botched dismissal can be rendered fair if it is upheld after an appeal that is conducted properly. This is the real controversy of Fairbrother, although even then it can be argued that cases where a fair process breaches trust and confidence will be very rare. After all, when they are considered objectively, fairness and trust are strongly related concepts.

I am not convinced that the Fairbrother point that you talk about at the end of your post is so controversial: If there is a range of reasonable responses, surely some responses within the range will be more reasonable than others. The point being: if a response falls within the range, it may still be tainted by an acceptable degree of unreasonableness. The moment you accept that there is more than one potential response is the moment you open the door to some unreasonableness.
On the wider issue:
HHJ Richardson seems to be making the point that:
Unreasonable conduct will only breach the implied term if the rest of the Malik test (conduct calculated or likely to seriously damage trust, etc) is satisfied.
All that Fairbrother did was apply the reasonable range of responses test to the ‘without reasonable and proper cause’ part of the Malik test, with good reason (as HHJ Richardson explains in paragraph 43).
As you point out, HHJ Richardson himself says that it is difficult to conceive of conduct outside the reasonable range that does not breach the implied term.
Isn’t that basically the same point that Elias P made in Claridge?
I am drifting towards the view that, actually, the first instance tribunal in Niblett got it right, in substance even if not in form, when they baldly stated that all that is needed for a constructive dismissal was conduct outside the reasonable range. I know that they were wrong to cite Fairbrother as authority for that view, but, thinking logically…
I challenge anyone to come up with a plausible example of conduct that is outside the reasonable range but not likely to seriously damage trust and confidence.
Peter – I suggest that you read the case of Dutton & Clark v Daly from back in 1985. This suggested that an act outside the reasonable range of responses would be a repudiation in all cases. In the 1980s, everything was up in the air but such a view would now be inconsistent with Malik. It is also clear from Fairbrother and Claridge that an act outside the range is not sufficient on its own.
What is necessary for someone to do is to analyse what is meant by trust. What does an employee trust an employer to do or not to do? In my view, it is about fair treatment. If an employer acts fairly to an employee then, objectively, he cannot say that he has lost trust. However, if he treats him unfairly, it will not always be the case that trust of being treated fairly in the future is lost. Our relationships would not last long if a single act of unfairness resulted in trust being destroyed in every case.