Surveillance in Manufacturing: Key Lessons from Kerita v BMW (UK) Manufacturing Limited

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James Banks - Trainee Solicitor

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Article reviewed by Anjali Brown and Jack Latham.
7 minutes reading time

Employee Absences and Surveillance  Key takeaways for the manufacturing sector from Kerita v BMW UK Manufacturing Limited
Monitoring of employees is prevalent in all industries, to a lesser or greater degree.

In the manufacturing sector, where productivity and safety are paramount, many employers reasonably wish to monitor employees.  

Our Manufacturing Lawyers explore the recent case of Kerita v BMW (UK) Manufacturing Limited, which sheds greater light on the extent to which employers can monitor their employees, particularly in relation to employee absences.

This case underscores the legal boundaries around surveillance, the importance of accurate medical interpretation, and the duty to make reasonable adjustments for disabled employees.

Employers should take note of the procedural missteps and discriminatory assumptions that led to a successful claim against BMW Manufacturing, as discussed below.
 

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Background

Mr Kerita worked in a physically demanding role as an ‘Assembly Associate’ on the production lines for BMW Manufacturing from October 2015 until May 2023, when he was dismissed for gross misconduct.

Following several periods of absences during his employment, Mr Kerita’s ongoing back pain was diagnosed by a specialist spinal surgery unit as a disc protrusion, which was impacting a spinal nerve.

Mr Kerita was subsequently referred to occupational health, which concluded that he was likely to be deemed disabled under the Equality Act 2010.

Soon after, Mr Kerita’s physiotherapist stated to the employer that there were inconsistencies between Mr Kerita’s verbal statements of his pain and what he was actually able to do during the physiotherapist’s physical testing.

For example, Mr Kerita’s ability to complete a 2-minute plinth sit was at odds with his claim that he was unable to sit still.

BMW Manufacturing, therefore, instructed investigators to carry out covert surveillance on Mr Kerita, which captured him walking almost 3 miles and bending down once to examine the side of a vehicle.

The recording did not show Mr Kerita’s face, and there were no visible expressions of pain. Following this initial period of surveillance, BMW Manufacturing also considered obtaining further funding for additional surveillance of Mr Kerita, reportedly “to ensure [a] robust outcome”, albeit no further surveillance was ultimately conducted.

In May 2023, Mr Kerita was invited to a disciplinary hearing in relation to fraudulently claiming company sick pay and unacceptable absences, where he was ultimately dismissed for gross misconduct.

Mr Kerita subsequently appealed the decision but was unable to attend the appeal hearing due to a pre-booked appointment. Nevertheless, the appeal hearing proceeded with him and upheld the dismissal.
 

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Background v4

The Employment Tribunal’s Decision: Unfair Dismissal, Reasonable Adjustments, and Disability Discrimination

Unfair Dismissal

Although conduct is a potentially fair reason for dismissal under the Employment Rights Act 1996, the Employment Tribunal determined that BMW Manufacturing had fundamentally misunderstood what Mr Kerita had informed them in relation to his medical condition.

The employer had incorrectly assumed that Mr Kerita was unable to walk for more than 20-30 metres, when he had repeatedly informed the employer and the physiotherapist that he experienced pain, sickness, or dizziness after walking for some time, not that he was fundamentally unable to walk.

Given the employer’s incorrect assumptions of Mr Kerita’s physical condition and the fact that the surveillance recordings did not show Mr Kerita’s face, the report could not accurately conclude whether he was experiencing ‘pain, sickness or dizziness after walking’, the Tribunal concluded that Mr Kerita was entitled to sick leave and sick pay.

Additionally, the Tribunal concluded that there had been several procedural errors in the decision to dismiss Mr Kerita, including:
  • The employer had failed to carry out a sufficient investigation of the facts
  • The appeals procedure set out within an agreement with Mr Kerita’s union was not followed as he was not paid during his appeal
  • The employer did not rearrange the appeal hearing when it was informed that Mr Kerita was unable to attend
As a result, the employer’s procedure was deemed to be unreasonable in the circumstances.
Mr Kerita’s claim for unfair dismissal succeeded.
 

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unfair dismissal

Failure to Make Reasonable Adjustments

Since Mr Kerita’s medical condition was considered sufficiently severe to qualify as a disability under the Equality Act 2010, BMW Manufacturing was under a legal duty to make reasonable adjustments to alleviate or entirely remove Mr Kerita’s disadvantages in work.

In this case, both the occupational health advisor and Mr Kerita’s GP had recommended that Mr Kerita be redeployed into a less physically demanding role on the production line.

Mr Kerita claimed that other medically restricted employees were permitted to change to such roles.

The Tribunal concluded that the employer could reasonably have been expected to move Mr Kerita to an alternative role.

Although the Tribunal concluded that the employer could reasonably have been expected to move Mr Kerita to a different role, having taken into account factors such as cost, practicalities, and the potential effectiveness of the adjustment, the employer failed to provide any evidence that there were no suitable alternative vacancies during the period when Mr Kerita was continuing to request a move.

Mr Kerita’s complaints of a failure to make reasonable adjustments were therefore successful.
 

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Failure to make reasonable adjustments

Disability Discrimination

In this case, the Tribunal inferred from the facts that the employer had a general distrust or hostility to employees with back conditions and would not have formed the same view of an employee with an alternative medical condition, demonstrated by surveillance undertaken, which the Tribunal considered to be a “highly unusual step”.

The employer was unable to satisfy the Tribunal that Mr Kerita’s dismissal was unrelated to his medical condition, and Mr Kerita was successful in his claim of direct disability discrimination.

The Employment Tribunal also considered Mr Kerita’s claim for discrimination arising from his disability. In this case, the alleged discrimination arising from disability involved Mr Kerita’s absences from work due to his condition and the employer’s decision to give him formal warnings under their absence procedure.

Since the formal warnings given to Mr Kerita regarding his sickness absences were at a time when the employer had failed to make reasonable adjustments, the employer’s decision to issue formal warnings was deemed by the Tribunal not to be a proportionate means of managing the workforce and enforcing standards of conduct.

Consequently, the Employment Tribunal held that Mr Kerita’s claim for discrimination arising from disability was successful.
 

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Disability Discrimination v2

Comment

Evidently, the Kerita v BMW (UK) Manufacturing Limited case raises important issues for employers regarding their obligations to consider reasonable adjustments and the appropriate processes that employers should undertake when dealing with employee appeals.

In this case, the decision to instruct an external company to conduct surveillance of an employee was described by the Tribunal as a “highly unusual step” and demonstrates the care that employers should take when investigating misconduct and ensuring that medical conditions are accurately understood, as this can undermine disciplinary decisions and lead to discrimination claims.
 

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Comment v6

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Our Employment Law and Manufacturing team can guide you through complex cases involving surveillance, sickness absence, and disability discrimination.

0161 941 4000

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James Banks's profile picture

James Banks

Trainee Solicitor

James joined as a Trainee Solicitor at Myerson in 2024. Prior to joining the firm, James graduated from Durham University with a First Class Honours LLB. He is currently completing the SQE qualification with BPP University in Manchester.

About James Banks