Issues arising on termination

This Overview considers the issues that arise on termination of employment. It outlines how dismissal is distinguished from other forms of termination, the right for an employee to request a written statement of the reasons for their dismissal (or to be given one automatically in certain circumstances), particular issues pertinent when dismissing a senior executive, and the principles of constructive dismissal (which occurs when an employee resigns in response to a repudiatory breach of the employment contract by the employer). It covers contractual notice and statutory minimum notice, payments in lieu of notice (PILONs), waiver of notice, liquidated damages, repayment clauses and penalties, the steps an employer should take when responding to a resignation, garden leave and the right to work, retirement, without prejudice and pre-termination negotiations, and settlement agreements in the employment context. It also covers references, gross misconduct, Micklefield clauses and other issues to consider in relation to leavers and share schemes, removal of a director from office, payments for a director’s loss of office, issues relating to dismissal and partnerships, and termination payments and tax.

A contract of employment can end in various ways,