Guardian to pay $15m for unfair dismissal

The Industrial Disputes Tribunal (IDT) handed down a $15-million award in April 2022 to Catherine Allen for her unjustifiable dismissal by Guardian Life Limited, the entity with which she worked as an actuary.

But the quasi-judicial body rebuked Allen for divulging highly confidential information to third parties while she was employed to Guardian Life Limited as an actuary.

“The tribunal finds that Ms Allen was unjustifiably dismissed but has taken note of her egregious behaviour that contributed to her dismissal as well as the fact that she has mitigated her loss,” the body ruled.

The IDT heard that on August 15, 2018, Allen was called to a meeting and was informed that her position would be made redundant.

Allen was handed a letter which stated, among other things: “We advise that the company has taken a decision to outsource the work for which you are employed, and as a result, your position will be made redundant with effect from August 15, 2018, and your appointment as actuary for the company revoked as of this date.”

A senior executive of Guardian told the tribunal that she had reason to believe that Allen shared confidential emails with external parties. The company carried out an audit and subsequently confirmed that Allen had disclosed confidential company information to third parties, including a major competitor of the company.

In its response and findings, the IDT said it was mindful of the evidence of Ravi Tewari, chief executive officer of Guardian Holdings Limited and chairman of Guardian Life Limited, who stated in evidence that an actuary was not permitted to divulge information to any other actuary unless it was a statutory requirement.

The IDT said that as an actuary, Allen was expected to uphold the integrity of the profession.

However, the IDT argued that notwithstanding the fact that the company may have had cogent reasons to terminate the employment of Allen, the tribunal must take into consideration the statutory requirements.

According to the tribunal, Guardian, after discovering on August 17, 2018, that Allen had committed a serious breach of confidentiality, did not revoke the termination or reinstate her.

The IDT pointed out that it was not until October 18, 2018, after the company received the findings of an audit on the disclosure of confidential information by Allen, that Guardian wrote to her for a response.

Allen reportedly did not respond, and the company wrote to her on November 1, 2018, stating that the termination date remained the same, but the reason was now for cause.

The IDT, in its findings, said that on August 17, 2018, when the company discovered that Allen might have committed a breach, it should have acted and revoked the termination. According to the tribunal, after receiving the findings of the audit, Guardian should have taken disciplinary action against Allen.

It said that the tribunal was duty-bound to consider the Labour Relations Code (Section 3(4) of the Labour Relations and Industrial Disputes Act).

“In keeping with good industrial relations best practices, it was incumbent on the company to revoke the termination and reinstate Ms Allen,” the IDT insisted.

The tribunal argued that the Labour Relations Code expressly recognises the principles that “work is a social right and obligation and not a commodity and that dignity must be accorded and that industrial relations should be carried out within the spirit and intent of the code”.

The IDT contended that Allen was not afforded the dignity to which she had a right as the approach taken by Guardian was not in keeping with good industrial relations practices.

edmond.campbell@gleanerjm.com