When Does A Dismissal Take Effect For Statutory Rights Purposes?

The Issue

Claims under some statutory employment rights must be brought within a limited period of dismissal. So clarity as to the date a dismissal takes effect is crucial.

Statute states the effective date of termination (or EDT) is either:-

• the date on which contractual notice given by either party expires, or
• where notice is not given (as on a summary termination for gross misconduct) the date on which the termination takes effect.

Case law provides that a dismissal takes effect when communicated to the employee.

Verbal only communication of dismissal may breach the new ACAS Code of Practice requiring disciplinary process outcomes to be in writing.

The time when a written communication takes effect has been confirmed recently by the Court of Appeal which found that where a business sent a letter by recorded delivery summarily dismissing an employee without notice but the letter was signed for by someone else while the employee was away on