£10,000 injury to feelings award for maternity-related detriment was excessive

In the Employment Appeal Tribunal (EAT) case of Eddie Stobart Ltd v Graham, the EAT held that an employment tribunal’s award of £10,000 for injury to feelings for the company’s failure to deal with a grievance that had been blocked by its firewall was manifestly excessive.

Background to the case

Miss Graham was employed by Eddie Stobart Ltd as a planner. During her employment, she became pregnant and notified her employer. Shortly after, the company initiated a reorganisation, resulting in the redundancy of its planning team, including Miss Graham. As part of the process, the company introduced a new Transport Shift Manager (TSM) role. Miss Graham asserted her right under Regulation 10 of the Maternity and Parental Leave Regulations 1999 (the MPL Regulations) to be offered a suitable alternative role without the need for a competitive interview.

The company disagreed, taking the view that the role was not ‘suitable’ for the purposes of the MPL Regulations, and required Miss Graham to go through the standard selection process. Miss Graham was unsuccessful in securing the position and emailed a grievance to her employer but did not receive a response. She mentioned this at a redundancy consultation meeting and was asked to resend it.

Miss Graham was made redundant on 26 May 2022. She did not appeal but did mention her unanswered grievance which she was told would be looked into. It transpired that Miss Graham’s grievance had been blocked by her employer’s firewall system.

Miss Graham claimed that she had been automatically unfairly dismissed on the basis that the TSM role should have been given to her and also complained of pregnancy/maternity discrimination.

The Employment Tribunal decision

The employment tribunal dismissed Miss Graham’s automatically unfair dismissal claim, agreeing with the company that the TSM vacancies were not suitable for her. It did however uphold her complaint of pregnancy/maternity discrimination as her employer had failed to take adequate steps to deal with her grievance.

The tribunal found that both the Head of HR and the HR Business Partner were aware of the grievance. Whilst they made some enquiries, they did not follow up in writing with Miss Graham and did not seek further details about her grievance. The tribunal awarded Miss Graham £10,000 for injury to feelings.

The company appealed to the EAT, arguing that the award was so excessive as to be perverse.

The Employment Appeal Tribunal decision

The EAT ruled that the employment tribunal had been incorrect to award excessive compensation for injury to feelings in Miss Graham’s claim for maternity-related detriment.

While the tribunal found that the company had unlawfully failed to address her grievance regarding her treatment during redundancy, the EAT reduced the compensation from £10,000 to £2,000, concluding that the distress caused was at the lower end of the spectrum.

Key takeaways for employers

• Maternity protections – employers must be aware of employees’ rights under the MPL Regulations, particularly the obligation to offer suitable alternative roles during redundancy without requiring a competitive process.
• Handling grievances properly – once an employer is aware that a grievance has been raised, it must be thoroughly considered and addressed to avoid claims. Where an employee is on leave when a grievance is raised, employers must ensure proper communication with the employee to ensure the grievance can be investigated.

Comment

This case underscores the importance of employers following correct procedures when managing redundancy for employees on maternity leave. Ensuring fair treatment and properly handling grievances can help mitigate legal risks and foster a more supportive workplace environment.

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