conditional resignation did not determine effective date of termination

A recent EAT decision has highlighted that when it comes to deciding the effective date of termination of employment in an unfair dismissal claim, the deciding factor is what actually happened between the parties and not what the parties wished or agreed. This was the issue in a recent case where the EAT had to decide whether the employee's claim was brought out of time.

The employee wrote a letter of resignation to his employer on the 29 August 2009. It was a conditional resignation depending on two factors, with the result that the resignation was not definite and the employer could not action it. Correspondence went forwards and backwards between the employee and employer about trying to come to some sort of agreement. On the 3 September the employee sent another email to the employer stating that he was actually resigning and that his resignation was effective from the 29 August. The employer wrote back and accepted the employee's resignation. The ET decided that the email sent on the 3 September was clarity for the conditional resignation letter sent on the 29 August and that the effective date of termination was therefore 29 August. This meant that his claim was out of time.

In the EAT, this finding was reversed. It was held that the effective date of termination for unfair dismissal claims was a statutory construct which could not be deviated from. The letter sent on the 29 August by the employee was conditional; it was not an unequivocal resignation. This could not be seen as the day the employment contract was terminated despite what the parties thought. The unconditional resignation sent on the 3 September determined the effective date of termination and it could not be backdated either by the employee or the employer. The claim was therefore presented in time.

For further information on any of the issues covered in the above publication, you can contact a member of our Employment law team based in Southampton, Oxford and London or alternatively email us at employmentinfo@bllaw.co.uk.