Contractual notice takes effect on the date that the employee is aware of the termination.
The reminder comes about after the case involving the redundancy of Mrs Haywood from her position at the Newcastle Primary Care NHS Trust. She went on annual leave to Egypt from 19th April until 3rd May 2011.
Her employer sent her three letters about her redundancy but she only managed to read one of them on the 27th April 2011. The case arose because if Mrs Haywood’s notice period expired after her 50th birthday she would receive a higher pension – which would mean notice of termination had to be after the 26th April 2011.
The High Court ruled that the notice of termination only went into effect once she had actually read the letter of dismissal. This means she was entitled to the higher pension as she read it after the 26th April.
So, what can we learn from this?
The case reiterates to employers that the practices around redundancy and letters of dismissal should be clearly explained in the employee’s contract. Specifically, employers should ensure:
- Contracts of employment clearly spell out how notice should be given and when it is officially ‘received’ by the employee
- If critical notice cannot be given in person, a letter should be sent by courier
- If you don’t currently have contractual terms then notice should be given in person to avoid confusion
- If notice is given by email then turn on delivery and read receipt notifications, as well as asking the employee to acknowledge receipt of the email.
- Always post a notice by registered mail
- Factor in the employer’s scheduled annual leave before sending their notice
Need guidance on contractual notice issues? Contact Alison via email for more information.
