In the case of Newcastle’s NHS v Haywood (2017) EWCA Civ 153 the question of when does notice of termination of a contract take effect was considered. The best practice is for express provision in a contract of employment to specify when notice will be effective. The alternatives are common law principles that need consideration and the question to be asked is, when does contractual notice take effect on, 1. Posting of a letter 2. Delivery of the letter or 3. Communication of the notice to the employee so they are aware of it?
The Respondent was employed by the Appelllants. In a High Court case it was held that in the absence of express terms a notice is only effective once it is actually read by the Respondent so the contents were communicated to her. This means when an Respondent was away on holiday, notices were delivered to her home, and read later on her return from holiday, it was held that the notice took effect when the Respondent actually read the notice.
The Respondent brought proceedings in which she claimed entitlement to the early retirement pension on the basis that her 12 weeks’ notice period had not commenced until 27 April when she had read the letter, and so it had not expired until 20 July 2011 – her 50th birthday. HHJ Raeside QC found in favour of the Respondent, on the grounds that notice had only been given once she had actually read a letter of dismissal on 27 April 2011, so that the contents were communicated to her. The Court of Appeal dismissed the Appellant’s appeal.
In order to avoid this kind of situation, clear provision in contracts of employment need to be included setting out how notice should be given and when it is deemed to have been received. If notice is anticipated by email then the email can be sent with a delivery and read receipt notification asking the employee to acknowledge receipt. When using post employers should send it by registered mail.
