Originally published in August 2010
Retraction of Dismissal Only in Exceptional Cases
In Willoughby v CF Capital plc the EAT found that an attempted
retraction of a dismissal by CF Capital plc of Ms Willoughby
following discussions with her about changing her employment status
was not valid.
CF Capital plc had presumed that Ms Willoughby had accepted a
move to being self employed and wrote to her confirming this change
and terminating her employment. When it realised that Ms Willoughby
did not accept the change it explained that there had been a
misunderstanding and sought to retract the termination and return
to the status quo. Ms Willoughby did not accept the attempted
withdrawal of the termination and instead brought proceedings for
unfair and wrongful dismissal. At first instance a tribunal found
that there were special circumstances (the genuine
misunderstanding) which entitled CF Capital to withdraw its
termination letter. The EAT disagreed, holding that
