HER HONOUR JUDGE EADY QC
Introduction
The Factual Background
"Dear Patricia,
Re: notice of resignation.
Thank you for your letter dated 10 June 2016, in which you tendered your notice of resignation.
It is with sincere regret and disappointment that I accept your notice of resignation. I can confirm that your last day of work within Health Records will be Friday 8 [July] 2016.
I would like to [take] this opportunity in thanking you for your hard work, dedication and contributions to a highly successful team over the years, and I wish you every success with your future employment.
Please do not hesitate to contact me if you have anything that you wish to discuss.
Yours sincerely"
That letter was left for the Claimant on her desk.
"Hi
I have a member of staff who has handed in their resignation last week and wishes to retract it. Currently, the post is with the executive team for approval and has not been advertised.
Although I have not been given a reason for the retraction, I understand unofficially it is because of their sickness level declared in a reference, and that they currently have a verbal warning against them for their sickness absences.
Do I have to accept a retraction of resignation?
Many thanks"
"32.1. The second paragraph of his enquiry did not accurately record the reason why the Claimant wished to retract her resignation. He had understood at that time that the Claimant's reason was the fact that his reference had resulted in the job offer she had previously received being withdrawn.
32.2. The final line of his enquiry could be read as indicating a reluctance on his part to permit the Claimant to retract what he viewed as her "resignation"."
"�
After discussing your request with [Ms Tapp], it is with regret that I cannot accept your request and as a result, your last day of work with us will be on Sunday, 10 July 2016. I also need to inform you that due to the number of days annual leave taken already this financial year, the Trust will be looking to recover 88 hours of pay from you.
As I am on leave this week (from 27 June) should you have any questions then please contact [Ms Tapp] as [the team leaders] will not be able to assist.
I hope to catch up with you face-to-face upon my return."
The ET's Decision and Reasoning
"42.1. The letter does not identify the subject in respect of which notice is being given. It might be her role in the Records Department, i.e. notice of an intended transfer of department, or notice of termination of her employment relationship with the Respondent.
42.2. Support for the proposition that the notice given by the Claimant might be solely in respect of her role within the Records Department is provided by the disclosure given by the Respondent following exchange of witness statements of a sample set of documents relating to an employee ("A") who had successfully transferred her employment to a new department. I thought it noticeable that in that case:-
42.2.1. A was sent a conditional offer of a new post on 4 September 2014.
42.2.2. A wrote a letter of resignation to HR on 12 September 2014 in which she specifically stated that she was resigning "from my role", with notice expiring on 10 October 2014.
42.2.3. There was no evidence that this letter was treated as being a letter of resignation from her employment with the Respondent, for instance by her resignation being accepted. There was no evidence of any response.
42.2.4. By letter of 29 September 2014 HR made an unconditional offer to A, with a start date of 13 October 2014.
42.3. I also thought that exchange of correspondence to contradict the Respondent's assertion that all employees who transfer roles within the Respondent are required to resign from their employment and are then offered re-engagement on new terms and conditions. Although A was sent new terms and conditions of employment they only reflected the change of role. There was nothing to suggest a termination and re-engagement."
"45.1. The Claimant was not happy in the Records Department.
45.2 . The Claimant had applied for a new role with the Respondent, had received a conditional offer for, and intended to take up, that role.
45.3 . She was unaware that her employment history might adversely affect the conditional offer.
45.4. She needed to work to support herself and her family and to assist in caring for her father."
"47. � an objective consideration of the letter would lead a reasonable observer to conclude that the Claimant was doing no more than informing Mr Gorton-Davey at the earliest opportunity of her intention to accept what was then a conditional offer of a new role: it was not a termination of her employment."
"48.1. Mr Gorton-Davey knew that:-
48.1.1. The Claimant was not happy in the Records Department.
48.1.2. The Claimant had applied for a new role with the Respondent, had received a conditional offer for, and intended to take up, that role.
48.1.3. He regularly advised staff in Team Briefings, two or three times a year, that they should not resign their employment until they had received an unconditional offer of a new post.
48.1.4. The terms of the reference he had given about the Claimant were such that it might give the recipient cause for concern.
48.2 . Mr Gorton-Davey did not treat that letter as if it were a letter of resignation from the Respondent's employment. In particular:-
48.2.1. His letter in response is specific in referring to the end of the Claimant's work within the Records Department, not to the termination of her employment with the Respondent.
48.2.2. That letter did not deal with the matters one would expect, such as outstanding accrued or overtaken holiday, if the letter had been understood as intending to terminate the employment relationship.
48.2.3. He did not complete a "Staff Termination Form" at the time, and probably knew that the Claimant would have received a "Staff Transfer Form" with her conditional offer (as she in fact had).
48.3. In contrast, when Mr Gorton-Davey and Ms Tapp decided that the Claimant's employment should cease, on or shortly before 24 June 2016, he lost no time in:-
48.3.1. writing to tell the Claimant that her employment would cease "with us" on the specified date, and that she owed 88 hours excess holiday pay; and
48.3.2. completing a "Staff Termination Form" with appropriate particulars the same day."
The Respondent's Case on Appeal
"The words of a contract should be interpreted in their grammatical and ordinary sense in context, except to the extent that some modification is necessary in order to avoid absurdity, inconsistency or repugnancy." (Respondent's skeleton argument, paragraph 21)
There was, the Respondent contends, no reason to adopt a different approach when looking at the termination of a contract to that applicable to the construction of a contract more generally.
"Nothing, I was upset � I thought I am fed up. I was so grateful that I was getting out. I just wanted to go, give my notice in and have a few weeks off then go to my new position."
The Claimant's Case
Discussion and Conclusions
"37. The "rule" is that a notice of resignation or dismissal (whether given orally or in writing) has effect according to the ordinary interpretation of its terms. Moreover, over such a notice is given it cannot be withdrawn except by consent. The "special circumstances" exception as explained and illustrated in the authorities is, I consider, not strictly a true exception to the rule. It is rather in the nature of a cautionary reminder to the recipient of the notice that, before accepting or otherwise acting upon it, the circumstances in which it is given may require him first to satisfy himself that the giver of the notice did in fact really intend what he had apparently said by it. In other words, he must be satisfied that the giver really did intend to give a notice of resignation or dismissal, as the case may be. The need for such a so-called exception to the rule is well summarised by Wood J in Kwik-Fit (GB) Ltd v Lineham [1992] ICR 183, 191, and, as the cases show, such need will almost invariably arise in cases in which the purported notice has been given orally in the heat of the moment by words that may quickly be regretted."
"4. � Some care, it seems to us, is necessary in regard to later events �: � later events, unless relied on as themselves constituting a dismissal, are only relevant to the extent that they throw light on the employer's intention; that is to say, we would stress, his intention at the time of the alleged dismissal. A word of caution is necessary because in considering later events it is necessary to remember that a dismissal or resignation, once it has taken effect, cannot be unilaterally withdrawn. Accordingly, as it seems to us, later events need to be scrutinised with some care in order to see whether they are genuinely explanatory of the acts alleged to constitute dismissal, or whether they reflect a change of mind. If they are in the former category they may be valuable as showing what was really intended."