SOSR Dismissal Procedure: What Employers Need to Know

The SOSR dismissal procedure may allow an employer to dismiss an employee for a substantial reason that does not fall within conduct, capability, redundancy or a statutory restriction.

SOSR means “some other substantial reason”. It is a potentially fair reason for dismissal, but employers should not use it as a convenient catch-all category.

The employer must identify a genuine and substantial reason. It must also act reasonably, investigate the circumstances and follow a fair process before making a final decision.

What is the SOSR dismissal procedure?

Section 98 of the Employment Rights Act 1996 sets out the potentially fair reasons for dismissal. These include conduct, capability, redundancy and statutory restriction.

The legislation also allows dismissal for some other substantial reason that could justify ending the employee’s employment. Employers commonly refer to this reason as SOSR.

The SOSR dismissal procedure applies to unusual situations that do not fit comfortably within the other recognised reasons. However, simply describing a dismissal as SOSR will not make it fair.

An employment tribunal will usually consider:

• whether the employer had a genuine reason;
• whether that reason was substantial;
• whether the employer investigated the matter properly;
• whether it considered reasonable alternatives; and
• whether dismissal fell within the range of reasonable responses.

When may an employer rely on SOSR?

SOSR covers a broad range of employment situations. Possible examples include:

• pressure from an important customer or contractor;
• a serious breakdown in working relationships;
• an employee refusing reasonable contractual changes;
• a significant conflict of interest;
• a loss of trust that does not amount to misconduct;
• the risk of confidential information being compromised; or
• a business reorganisation that does not create a redundancy situation.

These circumstances do not automatically justify dismissal. Instead, the employer must examine the facts and decide whether it can resolve the problem without ending employment.

Third-party pressure and customer objections

An employer may face difficulties where a customer, client or contractor refuses to work with a particular employee.

For example, a major client may demand that the employer removes the employee from its premises. Losing that client could cause serious commercial harm.

Nevertheless, the employer should not simply accept the client’s demand. It should ask for clear reasons, investigate the complaint and give the employee an opportunity to respond.

The employer should also consider alternatives, such as:

• moving the employee to another site;
• placing them with a different customer;
• changing their duties; or
• addressing the client’s concerns through additional supervision.

Therefore, dismissal should normally remain a last resort.

Breakdown in working relationships

A serious breakdown between employees may sometimes justify an SOSR dismissal. However, ordinary disagreements or personality clashes will rarely provide a sufficient reason.

The problem should have a significant effect on the organisation. For instance, it may prevent key employees from working together or cause serious operational disruption.

Before considering dismissal, the employer should investigate the cause of the breakdown. It should also consider mediation, changes to reporting lines, redeployment or other practical solutions.

Where an employee has raised a grievance, the employer should address it fairly. It should not dismiss the employee merely because the complaint has created inconvenience.

SOSR dismissal procedure for contractual changes

An employer may need to change employment terms because of financial pressure, restructuring or operational requirements.

First, the employer should explain the proposed changes and consult affected employees. It should provide clear business reasons and genuinely consider any alternatives or counterproposals.

If the parties cannot agree, the employer may consider dismissing the employee and offering re-engagement on new terms. In some cases, SOSR may provide the potentially fair reason.

However, dismissal and re-engagement carries significant legal and employee-relations risks. The employer should show a strong business reason and a genuine attempt to reach agreement.

Collective consultation duties may also apply where the employer proposes 20 or more relevant dismissals at one establishment within 90 days.

Employers considering this approach should also read our article on changing employment terms.

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Steps in a fair SOSR dismissal procedure

No single process applies to every SOSR case. Even so, employers should normally follow several important steps.

Identify the substantial reason

The employer should clearly explain the problem and why it affects the employee’s continued employment.

A vague concern, minor inconvenience or unsupported allegation is unlikely to justify dismissal.

Investigate the circumstances

The employer should gather relevant evidence before reaching conclusions. This may include documents, witness accounts, correspondence or information from a third party.

Importantly, the investigation should remain balanced. The employer should consider evidence that supports the employee as well as evidence against them.

Invite the employee to a meeting

The employer should write to the employee and explain the issue. The letter should also warn that dismissal may result.

During the meeting, the employer should explain its concerns and allow the employee to respond fully. It should consider any evidence, explanation or alternative solution they suggest.

Consider alternatives to dismissal

Depending on the circumstances, alternatives may include:

• mediation;
• redeployment;
• a transfer to another location;
• a change of duties;
• different working arrangements;
• additional supervision; or
• an agreed settlement.

The employer does not always have to accept an alternative. However, it should consider every realistic option before dismissing the employee.

Confirm the decision and offer an appeal

If the employer decides to dismiss, it should confirm the decision in writing. The letter should explain the reason, termination date, notice arrangements and right of appeal.

Where possible, a manager who did not make the original decision should hear the appeal.

Our article on implementing fair dismissal procedures explains the wider procedural steps employers should consider.

Notice and final payments

SOSR will not normally justify dismissal without notice. Therefore, the employer should provide contractual or statutory notice unless another legal reason permits summary dismissal.

The employee may also be entitled to:

• outstanding wages;
• payment for accrued holiday;
• contractual benefits during notice; and
• other sums due under the employment contract.

A failure to provide proper notice could create a wrongful dismissal claim, even where the employer can defend an unfair dismissal claim.

Common SOSR dismissal procedure mistakes

Employers often increase their legal risk by:

• using SOSR because no obvious reason applies;
• failing to identify a substantial reason;
• accepting a customer’s demand without investigation;
• deciding the outcome before meeting the employee;
• failing to consider alternatives;
• providing unclear reasons in the dismissal letter; or
• refusing the employee an appeal.

Employers should also check whether the circumstances involve discrimination, whistleblowing or another automatically unfair reason. These claims may arise regardless of the employee’s length of service.

Reducing the risk of a tribunal claim

A genuine SOSR reason does not guarantee a fair dismissal. The employer must also show that it acted reasonably in the circumstances.

Clear records can help demonstrate this. Therefore, employers should retain investigation documents, consultation notes, meeting invitations, proposed alternatives and written decisions.

Where an agreed exit may provide a better solution, the employer can consider a protected conversation and settlement agreement. More information appears on our settlement agreements for employers page.

Advice on the SOSR dismissal procedure

The SOSR dismissal procedure can help employers deal with unusual employment situations. However, tribunals examine these cases closely because the category is broad and highly dependent on the facts.

EBS Law helps employers identify the correct dismissal reason, plan a fair process and consider alternatives before making a final decision.