Knowledge (XXG)

Hollister v National Farmers' Union

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J.'s view on that. It must depend on all the circumstances whether the reorganisation was such that the only sensible thing to do was to terminate the employee's contract unless he would agree to a new arrangement. It seems to me that that paragraph may well be satisfied, and indeed was satisfied in this case, having regard to the commercial necessity of rearrangements being made and the termination of the relationship with the Cornish Mutual, and the setting up of a new relationship via the National Farmers' Union Mutual Insurance Society Ltd. On that rearrangement being made, it was absolutely essential for new contracts to be made with the existing group secretaries: and the only way to deal with it was to terminate the agreements and offer them reasonable new ones. It seems to me that that would be, and was, a substantial reason of a kind sufficient to justify this kind of dismissal. I stress the word “kind.”
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Certainly, I think, everyone would agree with that. But in the present case Arnold J. expanded it a little so as not to limit it to where it came absolutely to a standstill but to where there was some sound, good business reason for the reorganisation. I must say I see no reason to differ from Arnold
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The question which is being discussed in this case is whether the reorganisation of the business which the National Farmers' Union felt they had to undertake in 1976, coupled with Mr. Hollister's refusal to accept the new agreement, was a substantial reason of such a kind as to justify the dismissal
155:“Where there has been a properly consulted-upon reorganisation which, if it is not done, is going to bring the whole business to a standstill, a failure to go along with the new arrangements may *551 well — it is not bound to, but it may well — constitute ‘some other substantial reason.’” 135:
The Court of Appeal held the dismissal was a “substantial reason of a kind such as to justify the dismissal” within EPA 1974 Sch 1, para 6(1)(b). There was no requirement to consult the claimant specifically. Consultation was one factor among many that could be taken into account.
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The Tribunal found the dismissal was for some other substantial reason and there was no duty to consult. The EAT held that the dismissal was for a substantial reason, but the level of consultation was not enough to discharge the onus that their action was reasonable.
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secretaries. Mr Hollister said the new terms were insufficient, and he refused to accept. He thought though there was a slight increase in pay, the pension entitlements were not as good. He was dismissed, and so claimed it was unfair.
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where it was recognised by the court that reorganisation of business may on occasion be a sufficient reason justifying the dismissal of an employee. They went on to say, at p. 420:
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Association Co for members. The secretaries complained their pay was lower than in the rest of the country, so head office negotiated new terms, but without consulting the
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of the employee. Upon that there have only been one or two cases. One we were particularly referred to was
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held that a business reorganisation like this could be ‘some other substantial reason’.
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as a secretary, earning commission on getting insurance with
81: 71: 63: 55: 45: 31: 102:case concerning redundancy and unfair dismissal. 480:Nelson v British Broadcasting Corporation (No 2) 142: 193: 8: 574:United Kingdom employment contract case law 464:Dunnachie v Kingston-upon-Hull City Council 220:Termination of Employment Convention, 1982 200: 186: 178: 37: 28: 569:Court of Appeal (England and Wales) cases 148:Ellis v Brighton Co-operative Society Ltd 110:Mr Hollister worked in Cornwall for the 523: 247:R (Seymour-Smith) v SS for Employment 7: 327:Notcutt v Universal Equipment Co Ltd 287:Western Excavating (ECC) Ltd v Sharp 50:Court of Appeal of England and Wales 95:Hollister v National Farmers’ Union 32:Hollister v National Farmers’ Union 18:Hollister v National Farmers’ Union 353:British Home Stores Ltd v Burchell 25: 301:Buckland v Bournemouth University 435:Port of London Authority v Payne 367:Iceland Frozen Foods Ltd v Jones 579:1979 in United Kingdom case law 421:Polkey v AE Dayton Services Ltd 564:United Kingdom labour case law 395:British Leyland UK Ltd v Swift 1: 381:Williams v Compair Maxam Ltd 170:Sir Stanley Rees concurred. 449:Norton Tool Co Ltd v Tewson 275:Kwik-Fit (GB) Ltd v Lineham 600: 233:Employment Rights Act 1996 489: 475: 459: 445: 431: 417: 403: 391: 377: 363: 349: 337: 323: 311: 297: 283: 271: 257: 243: 230: 213: 86: 76: 36: 112:National Farmers’ Union 407:HSBC Bank plc v Madden 341:Ford v Warwickshire CC 208:Unfair dismissal cases 162: 157: 153: 87:Dismissal, redundancy 315:Adamas Ltd v Cheung 261:Gisda Cyf v Barratt 584:Lord Denning cases 503: 502: 91: 90: 16:(Redirected from 591: 540: 537: 531: 530:ICR 542, 550-551 528: 513:Unfair dismissal 497:unfair dismissal 481: 465: 221: 202: 195: 188: 179: 41: 29: 21: 599: 598: 594: 593: 592: 590: 589: 588: 554: 553: 548: 543: 538: 534: 529: 525: 521: 504: 499: 485: 479: 471: 463: 455: 441: 427: 413: 399: 387: 373: 359: 345: 333: 319: 307: 293: 279: 267: 253: 239: 226: 219: 209: 206: 176: 138:Lord Denning MR 133: 108: 77:Lord Denning MR 23: 22: 15: 12: 11: 5: 597: 595: 587: 586: 581: 576: 571: 566: 556: 555: 552: 551: 547: 544: 542: 541: 532: 522: 520: 517: 516: 515: 510: 501: 500: 490: 487: 486: 476: 473: 472: 460: 457: 456: 446: 443: 442: 432: 429: 428: 418: 415: 414: 404: 401: 400: 392: 389: 388: 378: 375: 374: 364: 361: 360: 350: 347: 346: 338: 335: 334: 324: 321: 320: 312: 309: 308: 298: 295: 294: 284: 281: 280: 272: 269: 268: 258: 255: 254: 244: 241: 240: 231: 228: 227: 214: 211: 210: 207: 205: 204: 197: 190: 182: 175: 172: 132: 129: 116:Cornish Mutual 107: 104: 89: 88: 84: 83: 79: 78: 74: 73: 69: 68: 65: 61: 60: 57: 53: 52: 47: 43: 42: 34: 33: 24: 14: 13: 10: 9: 6: 4: 3: 2: 596: 585: 582: 580: 577: 575: 572: 570: 567: 565: 562: 561: 559: 550: 549: 545: 536: 533: 527: 524: 518: 514: 511: 509: 508:UK labour law 506: 505: 498: 494: 493:UK labour law 488: 483: 482: 474: 470: 467: 466: 458: 454: 451: 450: 444: 440: 437: 436: 430: 426: 423: 422: 416: 412: 411:EWCA Civ 3030 409: 408: 402: 397: 396: 390: 386: 383: 382: 376: 372: 369: 368: 362: 358: 355: 354: 348: 343: 342: 336: 332: 329: 328: 322: 317: 316: 310: 306: 303: 302: 296: 292: 289: 288: 282: 277: 276: 270: 266: 263: 262: 256: 252: 249: 248: 242: 238: 234: 229: 225: 222: 217: 212: 203: 198: 196: 191: 189: 184: 183: 180: 173: 171: 168: 166: 161: 156: 152: 150: 149: 141: 139: 130: 128: 124: 121: 117: 113: 105: 103: 101: 100:UK labour law 98:ICR 542 is a 97: 96: 85: 80: 75: 72:Case opinions 70: 66: 62: 58: 54: 51: 48: 44: 40: 35: 30: 27: 19: 535: 526: 477: 461: 447: 433: 419: 405: 393: 379: 365: 351: 339: 325: 313: 305:EWCA Civ 121 299: 285: 273: 259: 245: 169: 163: 158: 154: 146: 143: 134: 125: 109: 94: 93: 92: 59:9 March 1979 26: 439:EWCA Civ 26 167:concurred. 165:Eveleigh LJ 558:Categories 546:References 331:EWCA Civ 3 291:EWCA Civ 2 453:EW Misc 1 539:IRLR 419 174:See also 131:Judgment 120:Cornwall 82:Keywords 64:Citation 484:ICR 110 469:UKHL 36 398:IRLR 91 385:ICR 156 357:ICR 303 344:2 AC 71 318:UKPC 32 278:ICR 183 265:UKSC 41 251:UKHL 12 67:ICR 542 56:Decided 425:UKHL 8 371:ICR 17 237:94-132 519:Notes 224:C 158 106:Facts 46:Court 495:and 491:see 235:ss 216:ILO 560:: 201:e 194:t 187:v 20:)

Index

Hollister v National Farmers’ Union

Court of Appeal of England and Wales
UK labour law
National Farmers’ Union
Cornish Mutual
Cornwall
Lord Denning MR
Ellis v Brighton Co-operative Society Ltd
Eveleigh LJ
v
t
e
ILO
Termination of Employment Convention, 1982
C 158
Employment Rights Act 1996
94-132
R (Seymour-Smith) v SS for Employment
UKHL 12
Gisda Cyf v Barratt
UKSC 41
Kwik-Fit (GB) Ltd v Lineham
Western Excavating (ECC) Ltd v Sharp
EWCA Civ 2
Buckland v Bournemouth University
EWCA Civ 121
Adamas Ltd v Cheung
Notcutt v Universal Equipment Co Ltd
EWCA Civ 3

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