Court of Appeal
Millicom Services UK Ltd and others v Clifford
[2023] EWCA Civ 50

Lewis, Elisabeth Laing, Warby LJJ
2022 Dec 1;
2023 Jan 26
Industrial relationsEmployment tribunalsProcedure Restrictions on public disclosureAllegation by claimant involving government of politically unsettled countryRespondents concerned employees located in country at risk if details published Second respondent stating that proceedings would be undefended if no restriction order madeWhether protection of Convention rights extending to employees located outside Convention territoriesWhether respondents’ Convention rights engagedWhether claimant’s contractual duty of confidentiality engaged Human Rights Act 1998 (c 42), s 6, Sch 1, Pt I, arts 3, 5, 6, 8 Employment Tribunals (Constitution and Rules of Procedure) Regulations 2013 (SI 2013/1237), Sch 1, r 50(1)

The claimant was employed by the first respondent as a global investigation manager responsible for conducting internal investigations into potential wrongdoings. His contract of employment contained clauses prohibiting him from disclosing confidential information. When he was dismissed, he commenced employment tribunal proceedings claiming, inter alia, unfair dismissal due to having made protected disclosures, specifically that he had reported on concerns that a subsidiary of the first respondent had supplied the mobile telephone and live tracking data of a customer to a government agency of another country without authority. The first respondent and three of its current or former employees, the first, second and third respondents, made an application for an order, under rule 50(1) of the Employment Tribunals Rules of Procedure 2013, prohibiting the public disclosure of information relating to the disclosure, on the grounds that such an order was necessary (i) to protect rights under articles 3, 5, 6 and 8 of the Convention for the Protection of Human Rights and Fundamental Freedoms (ii) to protect the safety of employees of the first respondent and of the subsidiary who were located in the country in question (which was not a signatory to the Convention); (iii) in the interests of justice, given the respondents’ concerns; and/or (iv) pursuant to an obligation of confidence. The second respondent, a vice president of the first respondent, gave evidence that, if the tribunal declined to make the order sought, he would not be willing to give evidence or permit the first respondent to defend the proceedings because of the risk to employees. Refusing the application, the employment tribunal held that it did not have power under rule 50(1) to protect the rights of individuals under the Convention who were outside the jurisdiction of the signatory states; that while the country in question was volatile and politically unsettled, with many risks for foreign businesses, there was no evidence that that general level of risk would be heightened by disclosure of the specified matters; that the respondents’ evidence was speculative, with no objective verification of the potential risks, and they had failed to demonstrate the real and immediate risk necessary to establish a departure from the principle of open justice; and that although the claimant’s contract established a duty of confidentiality, that could not outweigh the principle of open justice. The Employment Appeal Tribunal (“EAT”) allowed the respondents’ appeal in part, upholding the employment tribunal’s conclusions that the foreign staff did not enjoy Convention rights, and that the evidence did not demonstrate a sufficiently verified objective basis for the alleged risks to safety and security, but concluding that the employment tribunal had erred by (1) confining its analysis of the case to consideration of rights under articles 3, 5 and 8 of the Convention without considering whether the evidence justified an order in the interests of justice at common law and/or under article 6; (2) failing to consider whether the respondents’ subjective fears might be enough to engage article 8; (3) failing to conduct a proper fact-specific balancing exercise; and (4) failing to address the question of whether it was in the public interest for the duty of confidence to be breached by disclosure within the proceedings. The claimant appealed on the grounds that the EAT was wrong (1) to interfere with the Employment Tribunal’s properly reasoned conclusion that article 8 was not “engaged” so that there was no need for any balancing exercise; and (2) to find that the Employment Tribunal should have undertaken any further or different balancing exercise in relation to the confidentiality clause, and that those matters were enough to dispose of the appeal because on a proper analysis everything turned on the question of whether article 8 was “engaged”; and if not, there was no separate “interests of justice” issue to be considered. The respondents contended that the interests of justice were a distinct ground for derogation, and that the EAT was right to remit the case for a decision on the “interests of justice” issue both for the reasons it gave and on the additional ground that (contrary to the employment tribunal’s view) a party’s willingness or otherwise to give evidence or take part in proceedings was a legally relevant factor, and cross-appealed on the ground that the respondents’ fears (a) had such a clear objective basis that the tribunal was perverse to find otherwise and (b) were in any event enough to show that article 8 was engaged.

On the appeal and cross-appeal—

Held, appeal dismissed; cross-appeal allowed. (1) The effect of the Human Rights Act 1998 was not that the Convention on Human Rights and Fundamental Freedoms supplanted or replaced domestic statutory or common law rules; rather it provided certain guarantees against the enforcement of those rules to the extent that would be incompatible with fundamental human rights. It was not necessarily the case that the answer given by the common law would be the same as that arrived at through a Convention analysis and, if the two were different, that did not necessarily mean that the common law answer was incompatible with the Convention. In the present case, the employment tribunal had fallen into error in failing to give any distinct consideration to the relevant language of rule 50 of the Employment Tribunals Rules of Procedure 2013 or to the common law open justice principle separate from its consideration of the Convention issues. The starting point should have been the common law, which held that open justice was a fundamental principle, but contained a key qualification that every court or tribunal had an inherent power to withhold information where it was necessary in the interests of justice to do so. The common law’s protection of the fairness of the court's proceedings extended to ensuring that those proceedings did not risk life and limb. There was no reason why the court should be prohibited from doing what it considered necessary to ensure fairness in the proceedings just because the risk was to someone outside the jurisdiction, and the fact that, as would often be the position in such a case, the person said to be at risk did not enjoy the protection of the Human Rights Convention could not be a decisive factor. Furthermore, derogations from open justice might be granted under common law principles in circumstances where the evidence did not meet the high threshold for interference on the grounds that there would be a risk to life, limb or security. In such cases, the court would look for evidence of a real and immediate risk of harm. The employment tribunal did so, but as part of its Convention analysis. It erred in concluding that there was a lack of objective evidence that publicity for the facts at stake would place the life and limb of the second respondent or the foreign-based employees at real and immediate risk. The second respondent was a party and a potential witness who harboured fears about the consequences for himself and others of giving evidence and proceeding with the defence of the claim in the absence of derogations, but the employment tribunal erred in giving no consideration to those fears because it confined its analysis to the Convention and concluded that the fears were not supported by objective evidence and were therefore immaterial for that purpose. It had conducted no balancing process. Furthermore, although a threat to abandon a claim or defence or part of it if anonymity was not granted could not be enough of itself to justify an application for that relief, the question of whether publicity would affect the willingness of a party or witness to take part in a case was in principle a relevant factor and the tribunal had erred in leaving that out of account altogether. It should have considered the second respondent’s concerns and assessed their reasonableness (paras 26–27, 29, 31, 32, 40–48, 79, 80).

(2) Once a court or tribunal had struck the common law balance on the “interests of justice” limb of rule 50, it would have to check its conclusions against relevant Convention rights. Since rule 50(2) expressly required the tribunal to give effect to the Convention right to freedom of expression, a decision to grant a derogation would therefore need to be reviewed for compatibility with the article 6 and 10 rights of the parties and the article 10 rights of the press and public. Under article 6 the question would be whether the restrictions on disclosure were justified because “the protection of the private life of the parties so require” or whether they were “strictly necessary” because “publicity would prejudice the interests of justice”. On the facts of the respondents’ case the relevant justifications under article 10(2) seemed to be “for the protection of the … rights of others” and “for preventing the disclosure of information received in confidence”. On the question of whether the derogations sought were “necessary … in order to protect the Convention rights of any person”, the employment tribunal had not explained what it meant by “objective evidence” and had misdirected itself when concluding that there was no objective evidence to support the second respondent’s fears for the safety of others; and that those fears were insufficient to “engage” his article 8 rights. Although a court or tribunal could not find a real risk that some event would occur just because a witness feared it would, the respondent’s evidence went beyond mere subjective fears which on any reasonable view was “objective” evidence, whatever view might have been taken of the weight to be given to it (paras 50–52, 63, 68, 79, 80).

(3) On the question of whether the derogations sought fell within the circumstances identified in section 10A of the Employment Tribunals Act 1996, where the hearing would involve taking evidence from any person which was likely to consist of information which had been communicated to him in confidence or which he had otherwise obtained in consequence of the confidence reposed in him by another person, the wording of rule 50(1) suggested that the test was whether a restriction on open justice was necessary in order to protect information of those kinds. That would be the test at common law, and the correct basis on which to approach that limb of rule 50. It could not be said that enforcement of a contractual duty of confidence depended on proof that it was legitimate for the owner to seek to keep the information confidential. The overall question was not simply whether the information was a matter of public interest but whether, in all the circumstances, it was in the public interest that the duty of confidence should be breached. Further, the relevant circumstances included the nature of the information and the nature of the relationship that gave rise to the duty of confidentiality. The employment tribunal failed to address those aspects of the test and thereby failed to have regard to relevant factors. That amounted to a misdirection in law. For all those reasons the application would be remitted for redetermination by a differently constituted employment tribunal (paras 69, 72, 77–78, 79, 80).

Decision of the Employment Appeal Tribunal [2022] EAT 74; [2022] ICR 1204, EAT affirmed in part.

Greg Callus and Ben Hamer (instructed by Kingsley Napley LLP) for the claimant.

Tom Hickman KC (instructed by Morgan Lewis & Bockius UK LLP) for the respondents

Sharene P Dewan-Leeson, Barrister

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