Legal repercussions for heat of the moment dismissals and resignations

In the fast-paced world of employment, emotions can sometimes run high, and people may make statements that they did not genuinely mean, did not intend to say, or soon after regretted saying. This can lead to impulsive decisions such as a heat of the moment dismissal or resignation. Therefore, employers and employees must tread carefully to avoid any subsequent legal repercussions which could result in a costly outburst.

Heat of the moment dismissals

Employers may be tempted to dismiss employees in the heat of the moment without following a proper procedure. This could expose them to a claim of unfair dismissal. Therefore, it is vital for employers to remain level-headed, conduct a thorough investigation, and follow procedures before taking any disciplinary action.

Heat of the moment resignations

Similarly, employees may express an intention to resign in the heat of the moment. Employers should, however, be aware that such resignations may not always be legally binding. Considerations such as emotional stress, coercion or a simple misunderstanding could invalidate such a response.

Employment contracts and statutory rights often play a crucial part in determining the validity of a resignation. Employees may have the right to retract a resignation if it was made impulsively. Therefore, employers should be cautious about taking immediate action without proper investigation or a cooling-off period.

The Consequences

In the case of Omar v Epping Forest District Citizens Advice, Mr Omar resigned during a heated conversation with his manager. He later tried to retract his resignation, claiming it had been in the ‘heat of the moment’. Epping Forest District Citizens Advice disagreed, and his employment ended. Mr Omar brought a claim of unfair dismissal and wrongful dismissal; however, the tribunal initially found that Mr Omar’s resignation was effective, and there was no dismissal.

On appeal, the EAT disagreed with the tribunal’s reasoning and remitted the case to a fresh tribunal. Whilst effective notice of resignation or dismissal cannot be unilaterally retracted to be effective in the first place, the resignation or dismissal must appear objectively to a reasonable employer to be “seriously meant” or “really intended” at the time the words are uttered. This is the question the tribunal should have focused on to reach its decision.

The EAT, therefore, took the opportunity to review the authorities on ‘heat of the moment’ resignations and dismissals and gave the following guidance:

• A notice of resignation, once effectively given, cannot be unilaterally retracted.

• You should look at words of resignation objectively in all the facts of the case. This can include anything that would have affected the way in which the language used would have been understood by a reasonable bystander.

• The subjective understanding of the recipient is relevant but not determinative.

• It is not enough if the party expresses an intention to resign in future.

• The reasonable bystander, in the position of the recipient, must feel that the resignation was ‘seriously meant’ or ‘really intended’ at the point in time it was said.

• Evidence about what happened afterwards is relevant, but the longer the time that elapses, the more likely it is that the evidence will be of a subsequent impermissible change of mind.

• It is a question of fact, for the tribunal in each case, which side of the line a case falls.

This judgment is a reminder that specific findings of fact on words and conduct during relevant meetings must be made where words of resignation or dismissal are in issue.

To ensure best practice, employers should have regard to the following measures:

1. Investigation – Conduct a fair and thorough investigation before taking any disciplinary action.

2. Documentation – Keep detailed records for any incidents leading to a potential resignation or dismissal.

3. Communication- Encourage open communication to address workplace issues before they escalate.

4. Policy review – Regularly review and update employment policies to ensure they align with current legislation.

Conclusion

Resignations and dismissals require a measured approach from both employer and employee. Understanding the legal position, following proper procedures, and encouraging communication in the workplace can help mitigate the risks associated with impulsive decisions.

If you have any questions or would like support in navigating a heat of the moment resignation or dismissal please get in touch with the BLHR & Employment Team. We will be happy to discuss how we can help, including under our fixed fee BLHR service.