Resignation or dismissal?

Case 4: The facts

Mr Sandhu was asked to attend a meeting without being told what it was about. When it became clear that the meeting’s purpose was to dismiss him over allegations of misconduct (which had not been investigated or reported to him), he negotiated terms on which he would leave the company.

He later claimed unfair dismissal, but his employer argued that his claim should not be allowed to proceed as he had resigned rather than being dismissed.

The ruling

Where an employee’s only choice is between resigning or being dismissed, the Court of Appeal said, this is viewed as a dismissal; however, if the employee chooses to resign because s/he has negotiated beneficial terms, this may count as a genuine resignation. Sandhu had no option but to salvage what he could; there was no free negotiation and he was therefore dismissed. His unfair dismissal claim was upheld.

Sandhu v Jan De Rijk Transport Ltd [2007] EWCA Civ 430