29 May 2018

Take note of recent Case Law

Newcastle upon Tyne Hospitals NHS Foundation Trust v Haywood [2018]

This case which was decided by the Supreme Court, provides some clarity over the issue of when a notice of termination of employment takes effect, when relying on a letter in the post.

In this particular case the date that dismissal took effect was of particular importance, as the employee stood to lose out on enhanced pension entitlements if she was dismissed before her 50th Birthday. The employer in this case, knew that the employee was away on holiday, but went ahead and sent a letter confirming notice of termination of employment anyway. However, the employee did not receive the notice of termination until her return from holiday, which was after her 50th birthday, nevertheless the notice served in the letter meant that dismissal took effect before her 50th birthday.

The case was finally decided in the Supreme Court and provides us with some clarity over the issue of serving notice and when dismissal takes effect. They confirmed that - where an employee is dismissed by letter, the effective date of termination is the date on which he or she reads the letter, or has a reasonable opportunity to do so.

Employers can avoid uncertainty by:

– Ensuring that any notice of dismissal letter is confirmed face to face and/or hand delivered wherever possible.
– Backing up any letter, with an email communication or other electronic medium that may prove when notice was received and read.
– If preferred, including a contract clause that details when notice will run from after a dismissal letter is sent via the postal service.

Employers should never rely on normal postal services, including recorded delivery, as there is no guarantee that notice of dismissal has been received or read by the employee.