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FTD201

FULL RECOMMENDATION

FTC/20/2
ADJ-00019988
DETERMINATION NO. FTD201

SECTION 15 (1), PROTECTION OF EMPLOYEES (FIXED-TERM WORK) ACT, 2003


PARTIES :
HEALTH SERVICE EXECUTIVE
(REPRESENTED BY PADRAIC LYONS, B.L., INSTRUCTED BY BYRNE WALLACE SOLICITORS)

- AND -

MAURICE POWER
(REPRESENTED BY RAY RYAN, B.L., INSTRUCTED BY MACSWEENEY & COMPANY SOLICITORS)


DIVISION :

Chairman: Mr Foley
Employer Member: Ms Doyle
Worker Member: Mr Hall

SUBJECT:

1. Appeal of Adjudication Officer's Decision No(s). ADJ-00019988

BACKGROUND:

2.
The Employee appealed the Adjudication Officer’s Decision to the Labour Court on 19 March 2020. A virtual Labour Court hearing took place on the 18 June 2020. The following is the Labour Court's Determination:-





DETERMINATION :

This matter comes before the Court as an appeal of an Adjudication Officer’s decision by Maurice Power (the Appellant) in his complaints that his employer, the HSE (the Respondent) had breached the Protection of Employees (Fixed Term Work) Act 2003 at Section 9 in respect of his appointment as a Group Chief Executive of the Saolta University Healthcare Group in 2014 and his subsequent return to the Grade of Chief Financial Officer of the Saolta University Healthcare Group in 2019.

The Adjudication Officer in a decision dated 10th February 2020 decided that the Appellant’s complaints could not succeed as he was not a Fixed Term Employee within the meaning of the Act.

Background

Both sides are agreed that the facts of the matter before the Court are as set out hereinafter.

The Appellant is employed by the Respondent as a permanent pensionable employee since July 1999. He was appointed as the Chief Financial Officer of the Saolta University Healthcare Group, a unit of the Respondent, in January 2012 and occupied that role at the date of the hearing of the Court.

It is common case that the Appellant, at the invitation of the Respondent, took up the role of Interim Group Chief Executive, Saolta University Healthcare Group on 5th October 2014. On 20th November 2014 the Respondent wrote to the Appellant confirming his appointment on a temporary basis until 31st March 2015 or until the role was filled on a permanent basis whichever occurred sooner. He was also advised in that letter that when his temporary role as Group Chief Executive ceased, he would revert to his ‘substantive terms and conditions as a permanent employee of the Health Service Executive’.

The Appellant was advised by letter dated 7th May 2015 that his appointment was extended until 31st December 2016. He was subsequently advised in December 2016 that his appointment as interim Group Chief Executive was being extended until 31st December 2017. He was advised again in January 2018 by the Respondent that his appointment was extended to the end of 2018.

In September 2018 the post of Group Chief Executive for a five-year term was advertised in a competition administered by the Public Appointments Service on behalf of the Respondent. The Appellant was an unsuccessful candidate in that competition.

The Appellant resumed his position as Chief Financial Officer of the Saolta Group in September 2019.

Preliminary matter

The Respondent submitted to the Court that the Appellant was not a Fixed Term Employee within the meaning of the Act at any material time and consequently could not maintain a complaint under the Act.

The Court decided to consider this matter as a preliminary issue in view of the fact that, were the Court to determine that the Appellant did not have locus-standi to make the within complaint, then the entire matter before the Court would fall. In reaching this decision the Court took account of the fact that the factual matrix of the issue before the Court was not in dispute.

Summary Position of the Appellant

The Appellant submitted that, by operation of Section 9 of the Act, he has an entitlement to a contract of indefinite duration as Chief Executive Officer of the Saolta Hospital Group. Directive 1999/70/EC is applicable to the Appellant because in his work as CEO of the Saolta Group he was providing remunerated services to the Respondent in the context of a fixed term contract.

He submitted that the Court must construe the 2003 Act in light of the Directive which gives effect to the Framework Agreement annexed to the Directive. A vitally important aim of the Directive was to prevent the misuse of successive fixed term contracts to fill what are permanent, established employment needs. The Respondent has a legal obligation to definitively fill a vacant post such as the CEO post which was vacant in 2014.

He submitted that contracts issued to him in respect of the CEO role must be seen as contracts of employment pertaining to that role and that there is no other legally correct way of characterising them. He submitted that ‘in law’ he was not “acting up” or occupying some temporary interim arrangement.

He submitted that the contracts issued to him as CEO were precisely the subject of Clause 5 of the Framework Agreement and that he came within the definition of Fixed term employee set out Section 2 of the Act. He submitted that the Act did not exclude him from its provisions and that, were it to do so, it would be contrary to the Directive.

He referred to Section 1 of the Act which defines a permanent employee as ‘an employee who is not a fixed term employee’ and submitted that the obvious legislative intention of this definition was in the context of non-discrimination.

The Appellant submitted that in Del Cerro Alonso v Osakidetza-servicio Vasco de Salud C307/05 [2007] ECR I-7109 and in a large number of subsequent cases the CJEU had ‘forcefully emphasised’ that:

  • “Directive 1999/70 and the framework agreement are applicable to all workers providing remunerated services in the context of a fixed-term employment relationship linking them to their employer”
The Appellant also referred to Adeneler v Ellinikos Galaktos (ELOG) (C-21204) [2006] and Angelidaki v Organismos Nomarkhiaki Aftodiiski Rethimis [2009] to support his contention that the Directive applies to all workers providing remunerated services in the context of a “fixed term employment relationship” (Angelidaki)

The Appellant submitted that the Framework Agreement had the purposes both of preventing discrimination against fixed -term workers and of preventing the abuse of successive fixed term contracts. He submitted that an interpretative obligation rests upon this Court to apply national law in conformity with the law of the EU.

He submitted that it is a fundamental principle of EU law that a member state cannot apply rules which are liable to jeopardise the achievement of the objectives pursued by a Directive and thus deprive it of its effectiveness. A finding that the Appellant has no standing would prejudice the effectiveness of the Directive and undermine the objectives of the framework agreement.

He submitted that to exclude holders of permanent contracts of employment from the protections afforded by the Directive to fixed term workers would be unduly restrictive and contrary to the jurisprudence of the CJEU. He drew the Court’s attention again to Adeneler and Del cerro Alonso as well as Valenza v Autoritate Garante della Concorrenza e del [2013] CMLR 37 and Huet v Univversitate de Bretagne Occidentale (C-25111) [2012].

He also cited the CJEU decision in Perez-Lopez v Servisio Madrilena de Salud (Communidad de Madrid) (C-16/15) which he said deprecated the use of fixed term contracts to fill permanent employment needs.

He referred to the NI Industrial Tribunal cases of Pollock v Education and Library Board (2011) and McComb v Belfast Education and Library Board (2010) to support the contention that he has locus standi under the Act. He submitted that a finding against him would allow the Respondent to achieve promotion across the public sector without creating ongoing or enforceable contractual rights.

Summary Position of the Respondent

The Respondent submitted that the Appellant was never employed as a fixed term employee and was at all material times employed on a permanent and pensionable contract of employment which amounted to a contract of indefinite duration within the meaning of the Act. The Respondent submitted that at no material time was the Appellant’s status or position as a permanent member of the staff of the Respondent at risk or under threat. The expiry of his assignment as CEO has not terminated his contract of employment and the employment relationship between the Appellant and his employer continues to subsist.

The Respondent referred to the definition of a fixed term employee as set out in Section 1 of the Act as follows:

  • “fixed-term employee” means a person having a contract of employment entered into directly with an employer where the end of the contract of employment concerned is determined by an objective condition such as arriving at a specific date, completing a specific task or the occurrence of a specific event …”
The Act falls to be interpreted by reference to the Directive and the framework agreement which provides at Clause 3 of the agreement as follows:
  • “For the purpose of this agreement the term ‘fixed-term worker’ means a person having an employment contract or relationship entered into directly between an employer and a worker where the end of the employment contract or relationship is determined by objective conditions such as reaching a specific date, completing a specific task, or the occurrence of a specific event.”
The protections afforded by the Act and the Directive are afforded to employees, the end of whose employment relationship is determined by an objective condition. If the employment relationship is not one which will come to an end as a result of such a condition, then it follows that the employee is not a fixed term employee.

The Respondent submitted that the Act defines a permanent employee in a manner which distinguishes such an employee from a fixed term employee who enjoys the protection of the Act.

The Respondent submitted the decisions of this Court in the cases of of Kelly v Louth Council [FTD1320], Froebel College of Education v Raftery [2014] ELR 190, Gallagher v Sligo County Council [FTD1425] and a range of other decisions of this Court as authority for the proposition that the Appellant does not have locus-standi under the Act for the making of the within complaint.

The Respondent submitted that no issue arose in the matter before the Court which required a ‘purposive interpretation’ of the Act. The Act is not ambiguous in relation to the distinction between permanent and fixed term employees and consequently, having regard to the decision of Hedigan J. in HSE v Ali Umar [2011] IEHC 146 it is not permissible to import into the statute something which is not there.

Similarly, the Respondent submitted that the Directive affords a measure of discretion to member states in relation to implementation. The Respondent drew the Court’s attention to the 14th and 17th recitals to the Directive in that regard. In essence, the Respondent submitted that the matter of whether a person enjoys fixed term worker status falls to be determined domestically.

The Appellant has the benefit and protection of indefinite employment with the Respondent. He is not exposed to the loss of employment and the type of instability which that entails.

The Respondent submitted that the purpose of the Directive is not to confer a particular contractual rank or status upon persons such as the Appellant.

Relevant Law

The Protection of Employees (Fixed Term Work) Act 2003 transposes Council Directive No. 1999/70/EC into Irish law.

The recital to the Directive states at paragraph 14 and (17) as follows

  • (14) The signatory parties wished to conclude a framework agreement on fixed-term work setting out the general principles and minimum requirements for fixed-term employment contracts and employment relationships; they have demonstrated their desire to improve the quality of fixed-term work by ensuring the application of the principle of non-discrimination, and to establish a framework to prevent abuse arising from the use of successive fixed-term employment contracts or relationships.

    (17) As regards terms used in the framework agreement but not specifically defined therein, this Directive allows Member States to define such terms in conformity with national law or practice as is the case for other Directives on social matters using similar terms, provided that the definitions in question respect the content of the framework agreement;

The Directive itself in relevant part states
  • Article 1

    The purpose of the Directive is to put into effect the framework agreement on fixed-term contracts concluded on 18 March 1999 between the general cross-industry organisations (ETUC, UNICE and CEEP) annexed hereto.

The framework agreement in relevant part provides as follows:
  • Purpose (clause 1)

    The purpose of this framework agreement is to:

    (a) improve the quality of fixed-term work by ensuring the application of the principle of non-discrimination;

    (b) establish a framework to prevent abuse arising from the use of successive fixed-term employment contracts or relationships.

    Scope (clause 2) [extract]

    1. This agreement applies to fixed-term workers who have an employment contract or employment relationship as defined in law, collective agreements or practice in each Member State.

    Definitions (clause 3) [extract]

    1. For the purpose of this agreement the term "fixed-term worker" means a person having an employment contract or relationship entered into directly between an employer and a worker where the end of the employment contract or relationship is determined by objective conditions such as reaching a specific date, completing a specific task, or the occurrence of a specific event.

The Act transposed the Directive and, at Section 1 in relevant part, defines as follows:
  • “fixed-term employee” means a person having a contract of employment entered into directly with an employer where the end of the contract of employment concerned is determined by an objective condition such as arriving at a specific date, completing a specific task or the occurrence of a specific event but does not include ….”
“permanent employee” means an employee who is not a fixed-term employee;

The Appellant has based his complaint on the Act at Section 9 which provides as follows:

  • Successive fixed-term contracts.

    9.(1) Subject to subsection (4), where on or after the passing of this Act a fixed-term employee completes or has completed his or her third year of continuous employment with his or her employer or associated employer, his or her fixed-term contract may be renewed by that employer on only one occasion and any such renewal shall be for a fixed term of no longer than one year.

    (2) Subject to subsection (4), where after the passing of this Act a fixed-term employee is employed by his or her employer or associated employer on two or more continuous fixed-term contracts and the date of the first such contract is subsequent to the date on which this Act is passed, the aggregate duration of such contracts shall not exceed 4 years.

    (3) Where any term of a fixed-term contract purports to contravene subsection (1) or (2) that term shall have no effect and the contract concerned shall be deemed to be a contract of indefinite duration.

    (4) Subsections (1) to (3) shall not apply to the renewal of a contract of employment for a fixed term where there are objective grounds justifying such a renewal.

    (5) The First Schedule to the Minimum Notice and Terms of Employment Acts 1973 to 2001 shall apply for the purpose of ascertaining the period of service of an employee and whether that service has been continuous.

Discussion and conclusions

In Railway Procurement Agency and Allan Bell & others, [FTD097] this Court stated

  • “the protection of the Act is conferred solely on fixed-term employees and a complaint under the Act can only be entertained if it relates to a period of fixed-term employment.
In Kelly v Louth Council [FTD1320] this Court stated
  • Accordingly, the Court finds that the Complainant was at all times a permanent employee of the Respondent Council. In order to come within the ambit of the Act a Complainant must have the status of a fixed term worker. The Court interprets that to mean that a Complainant’s employment must be coterminous with the expiry of a fixed term or fixed purpose contract of employment. A complainant who reverts to their substantive grade and whose employment continues at the end of a fixed term assignment does not enjoy the protection of the Act.
The Appellant in the within Appeal accepts that at all material times he was employed by the Respondent as a permanent employee and consequently employed on a contract of employment of indefinite duration. However, he also maintains that he was for a time during the same period a fixed term worker employed on a succession of fixed term contracts of employment by the Respondent. These contentions are irreconcilable. This is not a case of the Appellant being employed in two different capacities at the same time by the same employer. The Appellant in the within appeal was employed by the Respondent in only one capacity at any one time. At no material time was his employment with the Respondent at risk or under threat.

Recital (6) of the Directive sets out an underpinning objective of the Framework Directive as follows:

  • The Council Resolution of 9 February 1999 on the 1999 Employment Guidelines invites the social partners at all appropriate levels to negotiate agreements to modernise the organisation of work, including flexible working arrangements, with the aim of making undertakings productive and competitive and achieving the required balance between flexibility and security;
At recital (14) the following is set out:
  • The signatory parties wished to conclude a framework agreement on fixed-term work setting out the general principles and minimum requirements for fixed-term employment contracts and employment relationships; they have demonstrated their desire to improve the quality of fixed-term work by ensuring the application of the principle of non-discrimination, and to establish a framework to prevent abuse arising from the use of successive fixed-term employment contracts or relationships;
This Court draws from the Directive and recitals and the Framework Agreement, set as it is in the context of the Community Charter of the Fundamental Social Rights of Workers, that its protections are afforded to those employees whose relationship with their employer is co-terminus with the fixed term contract under which they are employed.

The Court is fortified in this interpretation by the decision of the CJEU in Del Cerro Alonso v Osakidetza-servicio Vasco de Salud C307/05 [2007] ECR I-7109 which was opened to the Court by the Appellant in this appeal where the Directive’s scope was addressed as follows:

  • “Directive 1999/70 and the framework agreement are applicable to all workers providing remunerated services in the context of a fixed-term employment relationship linking them to their employer”
The Court notes the assertion of the Appellant that the CJEU has ‘forcefully emphasised’ that the Directive protects workers whose fixed term relationship links them to their employer. The Court is unable to conclude therefore that any case has been made out which would cause the Court to find any basis to conclude that the Act fails to transpose that intention of the Directive. The Court is fortified in that conclusion by the nature of the definitions set out in the Act, drawing as they do, a distinction between fixed term employees and permanent employees.

In the within matter the Appellant’s link with his employer is, self-evidently, the permanent employment relationship created and maintained by the contract of employment entered into by him and the Respondent prior to his taking up an appointment on a fixed term basis as interim Group Chief Executive and under the terms of which contract he returned to the role of Chief Financial Officer in 2019. That conclusion is all the more inescapable having regard to the fact that the Appellant’s employment was at no time at risk arising from the termination of his fixed term appointment to the role of interim Group Chief Executive.

The Court concludes that at all material times the Appellant was employed as a permanent employee, employed on a contract of employment of indefinite duration by the Respondent. The Court consequently concludes that the Appellant does not have locus-standi to maintain the within appeal. The Court’s conclusion in this matter accords with the jurisprudence of this Court on the scope of the Act as regards its application to employees who hold permanent contracts of employment with employers against whom they seek the protection of the Act as fixed term employees.

Determination

The Complaint of the Appellant is not well founded, and the Appeal fails. The decision of the Adjudication Officer is affirmed.

Signed on behalf of the Labour Court
Kevin Foley
5 August, 2020 ______________________
CC Chairman


NOTE

Enquiries concerning this Determination should be addressed to Ceola Cronin, Court Secretary.