Employment law - Employees Under Pressure - A Warning to Employers

As a general rule, where an employee is put under pressure to resign, this will count as a dismissal. Further, the dismissal will be automatically unfair, because proper procedures have not been followed.

This is so, even if the employee agrees to resign.

The dangers for employers were highlighted by a recent Court of Appeal case.

The London Operations Manager of a Dutch company was called into a meeting with two directors of the Company. He was told that he was no longer trusted and that his employment was being terminated. At the meeting, he negotiated terms, including an additional three months pay, and signed an acceptance letter.

Over-ruling both the Employment Tribunal and the Employment Appeal Tribunal, the Court of Appeal held that the Manager had been unfairly dismissed and that, at the critical meeting, the Manager had merely been “…. doing his best, on his own, to salvage what he could from the inevitable fact that he was going to be dismissed. This…. is the very antithesis of free, un-pressurised negotiation….”

In the Court of Appeal’s view, the employers’ behaviour towards the employee was unacceptable, in that:

• they failed to investigate allegations of misconduct

• they did not tell the employee, in advance, of the charges against him

• they did not suggest that he take advice before the meeting, or bring a companion with him

• they kept no record of the actual meeting

The practical lesson is that, rather than encouraging an employee to resign, it is generally safer (if appropriate) to start disciplinary proceedings. In cases of alleged misconduct, employers should be sure to follow proper procedures in considering disciplinary action or dismissal.