What is the Some other substantial reason for dismissal?

The Employment Rights Act 1996 sets out 5 potentially fair reasons for dismissal. The first 3 are used commonly and are well understood; redundancy, conduct and capability. Then you have statutory illegality (such as a lorry driver losing their driving licence). But what about the 5th one. How much do you know about Some other Substantial Reason (SOSR)?

Some other substantial reason is a bit of a catch all, but that doesn’t mean it can be wheeled out for every disagreement. SOSR is designed to accommodate situations where conventional reasons for termination do not apply. Unlike dismissals for misconduct or redundancy, SOSR dismissals don’t have a strict definition, making it a flexible tool for employers facing unique circumstances.

In what situations could Some other Substantial reason be a fair reason for dismissal?

The following situations could provide a fair reason for SOSR to be used.

1. Breakdown of trust and confidence. If there is a breakdown in working relationships or a refusal to follow reasonable management instructions, then this could be a reason to dismiss on SOSR grounds.
2. Third party pressure. If a client refuses to work with a member of the team and there is no other role to redeploy them onto, SOSR may be used to terminate the relationship.
3. Conflict of interests. If a senior employee has a partner or close family member who works with a competitor, there could be a conflict of interest which is serious enough to lead to dismissal on SOSR grounds.
4. Dismissal and re-engagement. If a contract needs to be varied and consultation doesn’t lead to agreement, employees may be dismissed and then re-engaged on new terms. This is a bit of a nuclear option to restructures, so much so that ACAS are shortly to issue a new code of practice on the matter.

Does this mean I can use Some other Substantial Reason to solve any problem?

No. While SOSR offers flexibility, it is not a carte blanche for employers to terminate contracts arbitrarily. The dismissal must still be reasonable and fair, and employers are expected to follow a fair and transparent procedure. This includes providing the employee with notice, holding meetings to discuss the issues, and allowing the employee to appeal the decision.