Withdrawing a dismissal and special circumstances

We know that where either an employer or employee uses unambiguous words of dismissal or resignation, they are deemed to have dismissed or resigned unless "special circumstances" apply, such as words said in the heat of an argument. In CF Capital Plc v Willoughby, the employer and Mrs Willoughby were involved in negotiations about a transfer of her status from employment to self-employed work. She asked for more information before making up her mind but before it was received, her manager wrote to confirm her move to self employed status and stated that the termination of her employment contract would become effective from a certain date. When she protested, he tried to retrieve the position and said that he had misunderstood the outcome of the negotiations.

Were these “special circumstances”? No, said the Court of Appeal.  The essence of the special circumstances exception is that the person using the unambiguous words must be given the chance to “cool off” and say that he did not mean what was said, before the recipient acts on them. The exception does not simply provide an opportunity for a retraction or withdrawal of those words.