S was summoned to a meeting with his managing director. The meeting was opened by his employer telling him that he was dismissed. By the end of the meeting it has been agreed that he would remain employed for four months keeping some of his benefits during this period. The parties signed a letter the same day which stated “We hereby agree that we terminate your contract”. The question for the Tribunal is whether it was unfair dismissal or a resignation. The Tribunal found that although it started as a dismissal, in fact he negotiated a better position and as such he had resigned! They rejected his unfair dismissal claim. The EAT upheld this decision but the Court of Appeal overturned it saying that he had been dismissed and it could simply not be argued that he negotiated freely. He did his best to salvage a bad situation.