End of Employment - Effective Date of Termination for Unfair Dismissal
As claims for Unfair Dismissal must be brought within three months, it is critical to determine exactly when the three-month period starts, known as the "Effective Date of Termination" (EDT). This is not always the date on which the employee is told they are dismissed. If an employee is given notice, the notice period starts the day after it is given.
The three months start to run in the following circumstances:
Notice Period
The same day that the notice period ends. It does not matter whether the notice period is worked through, or even whether the employer actually gives the correct amount of notice.
Summary Dismissal (i.e. dismissal without notice)
The three months run from the date of Summary Dismissal. Dismissal without notice usually occurs when the employee commits a serious offence, such as theft or assault.
Payment in Lieu (i.e. payment instead of notice)
Where the employer pays the employee for their notice period but does not require them to work through it. The three months run from the date of dismissal.
Appeals & Disciplinary Procedures
If the employer's appeal procedures are used and the original decision is confirmed at the end of the procedure, the original dismissal date stands. As most procedures take over three months, the employee would not be able to bring an Unfair Dismissal claim. If an employee is only suspended during the employer's procedures, the three-month period starts to run only from the decision actually to dismiss. Some employment contracts state that the three months run only from after the appeal & disciplinary procedure have ended. If an employee has an employment contract, the disciplinary procedure may be included in the contract.
The "Effective Date of Termination" can sometimes be extended. For example, where an employee is summarily dismissed one week before their two years of continuous employment come into effect.