The question of whether notice of termination of employment takes effect when posted, when delivered, or when received personally - if the employment contract does not state it - was the subject of a hearing at the Supreme Court in April 2018.
In the case of Newcastle Upon Tyne NHS Foundation Trust v Haywood, the decision - by a majority - was in favour of Mrs Haywood, a long time employee.
The facts stated in the case were that Mrs Haywood had told the Trust that she would be on annual leave from 19th April until 3rd May 2011. On 20th April 2011, the Trust sent her three letters terminating her employment - by reason of redundancy - with 12 weeks' notice.
One of the letters was sent by recorded delivery and was picked up from the Post Office on 26th April by a relative, who left it at her home to be opened upon her return on 27th April. The second letter was sent by standard post and the third to her husband’s email address, which he did not read until the morning of 27th April. Mrs Haywood was out of the country during her holiday time.
Mrs Haywood’s contract of employment did not state when notice given under the contract would be deemed to be received. The Court had to decide whether the notice of termination expired before Mrs Haywood’s 50th birthday on 20th July 2011, as she was entitled to an enhanced early retirement pension if she was still employed on her 50th birthday. For the lower pension to be due, Mrs Haywood would have to been given notice by 26th April 2011.
The argument put forward by the Trust was that notice was given when the letter was delivered - as in when it would have arrived in the ordinary course of post - whilst Mrs Haywood argued that notice was not given until it came to her attention. In those circumstances, the notice would have started to run on 27th April and would have expired on 20th July - her 50th birthday - entitling her to the enhanced pension.
In finding for Mrs Haywood, the court stated that in the absence of an express contractual term dealing with the situation, notice of termination is only effective when it comes to the employee’s attention and they have had a reasonable opportunity to read it. Therefore, Mrs Haywood was entitled to an enhanced pension.
The implication of this case serves as a reminder of the importance of contracts providing certainty where the issuing notice of termination of employment is concerned - particularly where the date of notice expiry is vital.
