Employment Rights Act 1996, section 97

Effective date of termination

Part X Unfair dismissal

(1) Subject to the following provisions of this section, in this Part “the effective date of termination”—

(a)in relation to an employee whose contract of employment is terminated by notice, whether given by his employer or by the employee, means the date on which the notice expires,

(b)in relation to an employee whose contract of employment is terminated without notice, means the date on which the termination takes effect, and

[F632 (c)in relation to an employee who is employed under a limited-term contract which terminates by virtue of the limiting event without being renewed under the same contract, means the date on which the termination takes effect.F632]

(2)Where—

(a)the contract of employment is terminated by the employer, and

(b)the notice required by section 86 to be given by an employer would, if duly given on the material date, expire on a date later than the effective date of termination (as defined by subsection (1)),

for the purposes of sections 108(1), 119(1) and 227(3) the later date is the effective date of termination.

(3) In subsection (2)(b) “the material date” means—

(a)the date when notice of termination was given by the employer, or

(b)where no notice was given, the date when the contract of employment was terminated by the employer.

(4)Where—

(a)the contract of employment is terminated by the employee,

(b)the material date does not fall during a period of notice given by the employer to terminate that contract, and

(c)had the contract been terminated not by the employee but by notice given on the material date by the employer, that notice would have been required by section 86 to expire on a date later than the effective date of termination (as defined by subsection (1)),

for the purposes of sections 108(1), 119(1) and 227(3) the later date is the effective date of termination.

(5) In subsection (4) “the material date” means—

(a)the date when notice of termination was given by the employee, or

(b)where no notice was given, the date when the contract of employment was terminated by the employee.

F633 (6). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Definitions used in section 97 6

employee

(1) In this Act “employee” means an individual who has entered into or works under (or, where the employment has ceased, worked under) a contract of employment.

Defined in s.230(1) · see it in the full Act
contract of employment

(2) In this Act “contract of employment” means a contract of service or apprenticeship, whether express or implied, and (if it is express) whether oral or in writing.

Defined in s.230(2) · see it in the full Act
employer

(4) In this Act “employer”, in relation to an employee or a worker, means the person by whom the employee or worker is (or, where the employment has ceased, was) employed.

Defined in s.230(4) · see it in the full Act

(6) This section has effect subject to sections 43K , 47B(3) and 49B(10) ; and for the purposes of Part XIII so far as relating to Part IVA or section 47B, “worker”, “worker’s contract” and, in relation to a worker, “employer”, “employment” and “employed” have the extended meaning given by section 43K.

Defined in s.230(6) · see it in the full Act
employed

and “employed” shall be construed accordingly.

Defined in s.230(5) · see it in the full Act

(6) This section has effect subject to sections 43K , 47B(3) and 49B(10) ; and for the purposes of Part XIII so far as relating to Part IVA or section 47B, “worker”, “worker’s contract” and, in relation to a worker, “employer”, “employment” and “employed” have the extended meaning given by section 43K.

Defined in s.230(6) · see it in the full Act
limited-term contract

(2A) For the purposes of this Act a contract of employment or other worker’s contract is a “limited-term contract” if—

(a)the employment under the contract is not intended to be permanent, and

(b)provision is accordingly made in the contract for it to terminate by virtue of a limiting event.

Defined in s.235(2A) · see it in the full Act
limiting event

(2B) In this Act, “limiting event”, in relation to a contract of employment or other worker’s contract means—

(a)in the case of a contract for a fixed-term, the expiry of the term,

(b)in the case of a contract made in contemplation of the performance of a specific task, the performance of the task, and

(c)in the case of a contract which provides for its termination on the occurrence of an event (or the failure of an event to occur), the occurrence of the event (or the failure of the event to occur).

Defined in s.235(2B) · see it in the full Act

Cases considering section 97 50

Newcastle upon Tyne Hospitals NHS Foundation Trust v Haywood

[2018] UKSC 22 · 25 April 2018Limits

The statutory effective date of termination rule was determinative in unfair-dismissal cases but did not determine the common-law contractual issue. The majority nevertheless regarded consistency across employer notices as sensible (see paras [31]; [38]).

Gisda Cyf v Barratt

[2010] UKSC 41 · 13 October 2010Interprets

The provision creates an autonomous statutory concept of the effective date of termination. It must be interpreted in the setting of legislation protecting employees rather than treated as governed by ordinary contract law (see paras [35]-[43]). For dismissal without notice, termination takes effect when the employee reads the dismissal communication or has a reasonable opportunity to learn its contents. The employer’s decision, dispatch or delivery alone does not suffice (see paras [32]-[43]).

Newcastle Upon Tyne NHS Foundation Trust v Haywood

[2017] EWCA Civ 153 · 17 March 2017Limits

Section 97 was distinguished as an autonomous statutory rule concerning the effective date of termination. The contractual notice question was governed by the general law rather than by section 97 (see paras [107]-[119]; [129]-[130]). Section 97(1) was treated as part of the statutory effective-date regime for summary dismissal and limitation. That statutory regime did not determine the common-law date on which contractual notice took effect (see paras [47]-[49]; [129]-[130]).

30 more judgments, and what each says about section 97, are in the case-law panel in the full Act.

Amendments and notes

2 notes from legislation.gov.uk

Amendments

  1. F632S. 97(1)(c) substituted (1.10.2002) by The Fixed-term Employees (Prevention of Less Favourable Treatment) Regulations 2002 (S.I. 2002/2034), reg. 11, Sch. 2 Pt. 1 para. 3(8) (with regs. 13-20 and subject to transitional provisions in Sch. 2 Pt. 2)
  2. F633S. 97(6) repealed (15.12.1999) by 1999 c. 26, ss. 9, 44, Sch. 4 Pt. III para. 14, Sch. 9(2); S.I. 1999/2830, art. 2(2)(3), Sch. 1 Pt. II, Sch. 2 Pt. II (with Sch. 3 paras. 10, 11)