Employment Tribunal confirms that Tribunal Proceedings can proceed in an Employer’s absence

Published: 3 Sep 2019
Type: Insight

First published in The Bermuda Chamber Of Commerce Newsletter (Chamber Insider), September 2019

In the recent Supreme Court case Island Construction Ltd. et al v Rebecca Philips et al [2019] SC (Bda) 45 App (Island Construction v Phillips), the Supreme Court was asked to determine:

1. Whether the Employment Tribunal was wrong to refuse to adjourn the hearing of a complaint pending the outcome of a criminal investigation into the employee’s conduct; and

2. Whether the decision of the Employment Tribunal was wrong.

Background

The Island Construction v Phillips judgment does not go into the full factual matrix of the employee’s conduct. However, there is enough information in the judgment to discern that the relevant employees were summarily dismissed by Island Construction as a result of conduct Island Construction determined to be serious misconduct warranting summary dismissal.

The employees lodged a complaint of unfair dismissal with the Employment Tribunal. A criminal complaint was commenced and had not concluded by the time of the Tribunal hearing. Island construction requested that the Tribunal hearing be adjourned (postponed) pending the outcome of the criminal investigation. The Tribunal refused to adjourn/postpone the hearing, which went ahead. At the hearing, the Tribunal ruled against Island Construction, who had not appeared to defend against the unfair dismissal complaint.

Island Construction appealed arguing that the Tribunal was wrong to refuse to adjourn the hearing and that, in any event, the Tribunal’s decision was wrong in law.

Decision of the Court

The Honorable Mrs. Justice Subair-Williams struck-out Island Construction’s appeal of the decision not to adjourn the hearing and also dismissed Island Construction’s appeal of the Tribunal’s decision. The judgment highlighted the following, which are, in our view, the key take homes for any employer considering a potential dismissal:

1. It is important that employers take the opportunity to attend and respond to the complaint at the Tribunal Hearing:

“25. Having relinquished the opportunity to appear and having willfully absented from the full hearing which followed, it is hardly open to the Appellants to now complain that they were deprived of a fair hearing based on an adjournment refusal. To do so, in my judgment, would amount to an abuse of process.”

2. Where an employee complains of unfair dismissal, the Employer has the burden of proving that the dismissal was justified.

3. Proper internal investigations were highlighted as the Court ruled against part of Island Construction’s appeal on the basis that it had failed to give the employees the opportunity to respond to the allegations prior to termination.

4. It was open to the Tribunal to reasonably find that the case for summary dismissal had not been made out and that the Respondents had been unfairly dismissed.

Employers should seek legal advice when considering the summary dismissal of an employee. Missteps at any stage could prove costly at any Tribunal hearing.

Share
More publications
Trust Disputes
27 Mar 2026

Privy Council decision in X Trusts – redefining the role of the protector

On 19 March 2026, the Judicial Committee of the Privy Council (JCPC) delivered its long-awaited judgment regarding the role of a fiduciary protector in the administration of a trust (A and 6 others (Appellants) v C and 13 others (Respondents) [2026] UKPC 11, on appeal from the Court of Appeal of Bermuda). The decision of the JCPC was unanimous, with the judgment being given by Lords Briggs and Richards.

Appleby-Website-Insurance-and-Reinsurance
26 Mar 2026

Latin American risks and the Bermuda market

Bermuda’s decades-long efforts to welcome Latin American risks to the island’s re/insurance market have borne fruit in the form of the many LatAm captive insurers that have become domiciled here.

Appleby-Website-Insurance-and-Reinsurance
24 Mar 2026

Navigating Bermuda’s New Recovery Planning Requirements: A Roadmap for Commercial Insurers

On 20 March 2026, the Bermuda Monetary Authority (BMA) issued an updated Guidance Note for Recovery Planning Requirements (Guidance Note). The Guidance Note assists Bermuda commercial insurers’ compliance with the obligations set out in the Insurance (Prudential Standards) (Recovery Plan) Rules 2024 (Rules), which became operative on 1 May 2025.

Appleby-Website-Private-Client-and-Trusts-Practice-1905px-x-1400px
13 Mar 2026

A will trust can keep a home in the family

In Bermuda, a family homestead represents more than financial value; it embodies ancestral heritage and housing security.

Appleby-Website-Employment-and-Immigration
12 Mar 2026

Privacy at Work: What PIPA Means for Bermuda Employers

The Personal Information Protection Act 2016 (PIPA), which came into force on 1 January 2025, represents Bermuda’s first comprehensive date protection regime. The legislation regulates the collection, use, disclosure and storage of personal information with the objective of protecting individuals’ privacy while allowing organisations to use data in a responsible and transparent manner. PIPA applies broadly to organisations operating in Bermuda, including employers. As a result, the employment relationship is one of the contexts in which the practical impact of PIPA is the most significant. Employers routinely process large volumes of personal information relating to employees and job applicants, and PIPA imposes obligations that affect recruitment, workplace monitoring, record-keeping, and disciplinary processes.

IWD website preview
9 Mar 2026

International Women’s Day 2026 Roundtable: Rights. Justice. Action. For all women and girls.

As we recognise International Women’s Day 2025, we are reminded that gender equality is not just a vision – it’s a call to action.

Dispute Resolution
4 Mar 2026

Bermuda: An Overview of Insurance: Contentious

There has been a recent increase in policyholder disputes involving coverage challenges by (re)insurers in the context of Bermuda high-value, excess-of-loss policies. This is, in part, due to Bermuda’s commercial (re)insurers facing a marked and sustained rise in the volume of claims, incurring claims costs globally of BMD1.1 trillion from 2016 through 2024. The massive volume and quantum of claims can be attributed in part to the significance of the Bermuda (re)insurance market in the global economy, as well as Bermuda’s exposure to catastrophic losses caused by natural disasters over this period. Bermuda’s increased exposure to global (re)insurance risks has naturally resulted in an increase in complex claims and coverage disputes.

Employment-and-Immigration
27 Feb 2026

Pay transparency heading Bermuda’s way?

The culture of secrecy with respect to pay traditionally found in workplaces may soon experience a shift, as global lawmakers and governments have enacted or moved toward enacting legislation to mandate greater pay transparency.

Appleby-Website-Insurance-and-Reinsurance
27 Feb 2026

Bermuda Monetary Authority: Modern, Thoughtful and Competitive

The Bermuda Monetary Authority (BMA) has signaled a clear direction for the future of insurance supervision in Bermuda by the release of its latest Notice on Regulatory Burden Reduction for Better Policyholder Outcomes (Notice).

Appleby-Website-Banking-and-Asset-Finance-1905px-x-1400px
19 Feb 2026

Bermuda Monetary Authority 2026 Business Plan: Overview & Expertise – Banking

Bermuda is not considered an international banking center and only banks licensed by the Bermuda Monetary Authority (BMA) under the Banks and Deposit Companies Act 1999 (BDCA) are entitled to undertake banking businesses in or from Bermuda. As banking is defined as deposit taking (as opposed to lending), international banks are generally able to lend to Bermuda-based borrowers subject to applicable restrictions relating to carrying on business in Bermuda.