Worker dismissed leaflet (7*)
I believe the answer is:
'leaflet' is the definition.
(I have seen 'Free leaflet ' mean 'hand-out' so perhaps 'leaflet' could also mean 'hand-out')
'worker dismissed' is the wordplay.
'worker' becomes 'hand' (hand is a kind of worker).
'dismissed' becomes 'out' (I've seen this before).
(Other definitions for handout that I've seen before include "Publicity" , "dole?" , "Donation" , "financial support" , "charity" .)