Dismissals for some other substantial reason

Section 98(1), ERA 96 contains a “catch-all” provision: It says that it is fair to dismiss an employee for “some other substantial reason” (SOSR)… “of a kind such as to justify the dismissal of an employee holding the position which the employee held”. It has been used to justify dismissal in several contexts. Examples include business reorganisations that do not result in redundancy, and dismissals for refusing to agree to unfavourable changes to contract terms, such as cuts in pay.

For this kind of dismissal to be fair, the tribunal must be satisfied that the employer acted reasonably, weighing the injustice to the employee of losing their job despite not being at fault against any prejudice to the employer (Dobie v Burns International Security Services Limited [1984] EWCA Civ 11).

The Acas Code does not apply to this kind of dismissal (Phoenix House Limited v Stockman [2016] UKEAT/0264/15/DM). This means that the tribunal has no power to order a percentage uplift (or penalty) for unreasonably failing to follow the Code (see page 392).

Employees dismissed for some other substantial reason must be given their full notice.