Resignations with Immediate Effect

In Secretary of State for Justice v Hibbert [2013] UKEAT 0289, the Employment Appeal Tribunal (EAT) considered what the effective date of termination should be where an employee told her employer "I have no alternative but to resign".

Following a number of problems at work, Ms Hibbert brought a grievance against her employer, HM Prison Wakefield (Wakefield). Wakefield rejected both her grievance and her appeal. Shortly afterwards, on 29 June 2012, she handed Wakefield a letter written by her lawyers which stated: "I have no alternative but to resign".  Wakefield allowed her a 5 day cooling off period to reconsider; she did not. On 11 July, Wakefield informed her that it accepted her resignation, that she was required to give 4 weeks' notice and that her last working day would therefore be 27 July.  She was paid until that date.  She then brought a constructive dismissal claim based on her understanding that her effective date of termination was 27 July.  Wakefield argued that it was 29 June, which would mean her claim was out of time. Overturning the Employment Tribunal's decision, the EAT held that Ms Hibbert's words had been unambiguous and had the same effect as if she had said "I am resigning now".  The fact that Wakefield had stated that her last working day would be 27 July and that she was paid up until that date had no legal effect: she had resigned on 29 June and that was the effective date of termination.  Her claim was therefore out of time.

This case gives welcome clarity to employers but it is important to note that the EAT gave much weight to the fact that Ms Hibbert had been given a cooling off period and had received legal advice.  The outcome may not be as straightforward where an employee resigns in the ‘heat of the moment'.