The general rule in respect of the termination of the employment contract by employers is that an employee is entitled to take clear and unambiguous notice of his or her dismissal at face value. Either party who has given proper notice of termination has no right to retract it once given.
Cases have developed an exception to this general rule which applies in very limited “special circumstances”, for example, where notice is given “in the heat of the moment”, perhaps during an argument, where the notice-giver can show that it did not really intend to terminate the contract.
In C F Plc -v- Willoughby, the employer had been in discussions with its employee regarding its proposition to terminate the employment relationship and engage the former employee as a self-employed consultant. The employer unambiguously terminated the employment at the same time as issuing the individual with the new Consultancy Agreement. The employee rejected the Consultancy Agreement and claimed she had been unfairly and wrongfully dismissed.
The Court of Appeal concluded that these were not “special circumstances” of termination in the heat of the moment. There had been a clear and unambiguous termination, which the employee was entitled to take at face value, and which the employer was not entitled to take back when it realised its mistake. The employer could not show that it did not intend to terminate the employment - it clearly did.
The case serves as a reminder to employers to be absolutely clear in their understanding with employees when making such arrangements so as to avoid potentially damaging confusion. The parties’ intentions should be planned and agreed before giving notice to terminate.
Now the Claimant is able to pursue her claims, it should be noted that, if she is successful, the employer’s attempt to rectify the situation may be taken into account when considering the employee’s duty to mitigate her loss and the Employment Tribunal’s assessment of compensation.
