Insight
Employers are often required to make difficult decisions when serious misconduct comes to light.
But what happens when an employee’s behaviour, though objectively serious, occurred under extreme pressure or coercion?
A recent Employment Appeal Tribunal (EAT) decision in XX v YY provides important clarification on how duress should be factored into assessments of wrongful dismissal and whether conduct truly amounts to a repudiatory breach of contract.
This case is a significant reminder that context matters and that employers must consider the full circumstances before deciding that trust and confidence has been irreparably damaged.
The Claimant, an assistant head teacher, was in a coercive and controlling relationship. During this period, she sent a message of a sexual nature to someone she believed to be under 18. Crucially, the employer accepted that she did so under extreme duress, fearing serious harm to herself and her children if she refused.
Despite this, she did not report the incident for 18 months. When the matter eventually came to light, the school summarily dismissed her. She brought a wrongful dismissal claim, arguing that her conduct did not amount to a repudiatory breach because it occurred under coercion.
The Employment Tribunal rejected her claim, finding that, although duress may be relevant to an employer’s decision whether to exercise its right to terminate the contract, it does not affect the objective assessment of whether the employee’s conduct amounted to a repudiatory breach for the purposes of a wrongful dismissal claim.
Although the appeal concerned the Tribunal’s approach to wrongful dismissal, it has a clear practical implication for employers contemplating summary dismissal. Employers must go beyond asking whether the employee committed a serious breach of policy and consider whether the conduct, viewed objectively and in all the relevant circumstances, was so serious as to amount to a repudiatory breach of contract, giving the employer the right to terminate the contract without notice.
Where an employee says that they acted under pressure, coercion or duress, this should be considered as part of the assessment of whether the conduct amounts to gross misconduct, rather than only as mitigation when deciding the appropriate sanction.
The decision does not mean that conduct committed under duress cannot amount to gross misconduct. Rather, duress cannot be excluded from the analysis. Employers should ensure that the disciplinary outcome explains how the relevant circumstances have been weighed, both when assessing whether the conduct amounts to gross misconduct and when determining the appropriate sanction.
We advise employers on complex misconduct investigations and dismissal decisions, including cases involving safeguarding concerns, coercion or other significant contextual factors. We also advise employees facing disciplinary action or dismissal in such circumstances. If you would like advice on the implications of this decision or assistance with an ongoing workplace matter, please contact a member of our Employment team.