Dismissal for ‘some other substantial reason’ (SOSR)

In these difficult trading times a recent ET for unfair dismissal highlights circumstances that may be more common as the need for business reorganisation occurs.  Tribunals have accepted that businesses need a degree of flexibility in order to remain commercially viable, so it is potentially fair to dismiss for SOSR where there are real and justifiable reasons for a reorganisation, even when an employee objects.

An example

In order to reduce losses a company had to make changes to its employee’s terms and conditions.  The employee would not agree to the new terms, and eventually the company invited him to a meeting to explain to him that the changes were non-negotiable and they would consider serving notice on him and then offering to re-employ him with the revised contract.  He refused the changes to his contract and was dismissed.

He went to ET for unfair dismissal, which was upheld.  The tribunal ruled that he had been dismissed for ‘some other substantial reason’, that the company had genuinely believed the contract changes were necessary, and had conducted proper discussion with the employee.  However, the tribunal also found that the company had not demonstrated a business need for all the changes and had ‘an unreasonable and intransigent attitude’ to the proposed changes.

The lessons learned here are that you must clearly demonstrate a business requirement for each contract change, and fully explain all the proposals and reasons behind them.  

Categorisation and process

Another example of SOSR is behaviour which is not misconduct but which causes irreparable breakdown in relations with colleagues

There are five categories of acceptable dismissal: conduct, capability, redundancy, legality and SOSR.  Correct categorisation and then following the appropriate procedure or code will keep employers out of the Tribunal courts, but SOSR should not be considered as a short cut to avoid, for example, a disciplinary procedure.

If in doubt, ask Hardwick HR for advice before instigating any actions towards dismissal.