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30 March 2011
Court of Appeal
Arden, Rimer, Pitchford LLJ
A dismissal without notice takes effect, for the purposes of unfair dismissal law, on the date the employee is told - because s 97(1) ERA 1996 says so. But as a matter of contract law, the contract of employment continues until the employee ‘accepts' the employer's repudiation - ie accepts that the contract is terminated. But where a contract of employment allows termination to take effect immediately on payment of a payment in lieu of notice, then simply making the payment is sufficient to terminate the contract.
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