What is the Effective Date of Termination (EDT) when an employee resigns with immediate effect?
That was the issue before the Employment Appeal Tribunal (EAT) in Horwood v Lincolnshire County Council. Briefly, the facts of the case are as follows: On 27 January, the employee sends her employer a letter intimating her resignation with immediate effect. The letter is received by her employer on 29 January and stamped as received by administrative staff. The employer then writes to the employee on 2 February, purporting to accept the resignation as of that date. The employee is paid salary up to and including 2 February and receives her pension from 3 February.
On 29 April, the employee submitted a claim for constructive dismissal to the Employment Tribunal, stating her employment had ended on 2 February. The County Council made a preliminary plea to jurisdiction, arguing the effective date of termination was 29 January (the date the resignation was received) and that the claim was therefore one day out of time. The employment judge agreed with the County Council holding the claim was out of time and the Tribunal had no jurisdiction. The employee appealed to the EAT.
The EAT upheld the employment judge's finding that the effective date of termination (EDT) was the date that her letter of resignation was received and opened at the Council's offices. The Council's response stating that her resignation would 'commence' a few days later had no legal effect. When the decision to leave is that of the employee, the date of termination is when the employee communicates his or her decision in clear terms.
Comment
Not a surprising decision from the EAT - the key point for employers to note is the difference between the effective date of termination for a dismissal without notice and a resignation of an employee without notice.
In the case of resignation, as outlined above, the EDT is the date the employee communicates his or her decision in clear terms i.e. the date the communication arrives at the employer’s place of business, irrespective of the date that it is actually read and acknowledged by the employer. In contrast, the EDT of a dismissal without notice, is the date on which the employee actually reads the dismissal letter or has a reasonable opportunity of discovering the contents of the letter.
