British Home Stores Ltd v Burchell [1978] IRLR 379

Facts

Mrs. Burchell worked as a store assistant for BHS in 1975. The employer initiated an investigation into her behaviour due to worries about her performance. Mrs. Burchell was dismissed after the investigation, and she later filed an unfair dismissal claim. The Court of Appeal was asked whether BHS had a legal justification for terminating Mrs. Burchell and whether they had behaved appropriately in doing so. The court tried to develop a standard for determining the fairness of a dismissal.

Held

Lord Denning, one of the most prominent judges of the twentieth century, delivered the leading judgement and defined a three-step procedure that became known as the 'Burchell test'. This test, which is involved in unjust dismissal, has become a key part of employment law in the United Kingdom. According to the Burchell standard, for a dismissal to be fair, an employer must have:

1. A genuine belief in the employee’s guilt – The employer has to have a solid basis for their belief that the worker is responsible for the accused act of misbehaviour or poor performance.

2. Reasonable grounds for that belief – Reasonable reasons are required for the employer's view in order for it to be considered valid. This indicates that the employer needs to have carried out an appropriate investigation and obtained pertinent information to support and confirm their view in order to comply with the law.

3. Acted reasonably in all circumstances – The decision of the employer to fire the employee must be a reasonable response to the claimed inappropriate behaviour or poor performance on the employee's part. This is what many people mean when they talk about the test of reasonable responses, which asks whether or not the conclusion is one that a reasonable employer would take given all of the facts. This entails taking into consideration a variety of circumstances, including the gravity of the offence, the length of time the employee has been employed, and any mitigating circumstances.