Insight from an HR consultancy in Edinburgh on understanding SOSR dismissals and how to handle them properly.
As a business owner, you’ve probably heard that there are only a handful of fair reasons to dismiss someone.
What happens when your situation doesn’t neatly fit into any of them?
There’s a lesser-known category called ‘some other substantial reason’ (SOSR) that’s designed for exactly these moments. The trouble is, it’s also the one most likely to land you in front of a tribunal if you get it wrong.
Here’s what you need to know before you act.
Why SOSR exists in the first place
Under the Employment Rights Act 1996, there are four well-known fair reasons for dismissal: conduct, capability, redundancy and statutory illegality. Most situations will fall into one of those.
Sometimes they don’t.
Maybe your business has been restructured in a way that doesn’t technically qualify as redundancy. Perhaps a key client has refused to continue working with one of your team members. A fixed-term contract has come to an end and there’s a genuine reason you can’t renew it.
SOSR was created to cover these kinds of scenarios. It’s intentionally broad, which gives employers flexibility. That flexibility comes with a catch; you need to be able to clearly explain and justify your reason.
Where employers go wrong
SOSR has developed a bit of a reputation as a catch-all. Some employers reach for it when they want to let someone go but can’t quite articulate why. Others use it to relabel a conduct or capability dismissal that wasn’t handled properly the first time around.
Neither of those approaches will hold up at a tribunal.
A tribunal will always look past the label on your dismissal letter and examine what actually happened. If the real reason was poor performance, for example, but you didn’t follow a proper capability process, calling it SOSR won’t change that.
The substance matters far more than the heading.
Situations where SOSR can genuinely apply
There are a number of circumstances where SOSR may be the right category. Here are some of the more common ones.
- A business reorganisation that falls short of redundancy. If you’re restructuring roles or changing the way your team operates, but nobody’s role is actually disappearing, redundancy may not be the correct route. SOSR could apply instead.
- A breakdown in a third-party relationship. If a client has lost confidence in a specific employee and refuses to work with them, that can create a genuine business problem. Provided you can evidence the impact and follow a fair process, SOSR may be appropriate.
- Conflict of interest situations also fall into this category. For instance, if an employee’s partner works for a direct competitor in a sensitive role, that could create a legitimate concern for your business.
- Expiry of a fixed-term contract where there’s a genuine reason for not offering a renewal.
The evidence you’ll need
Even when SOSR is genuinely the right category, you still need to build a proper case. There are no shortcuts here, and a tribunal will expect to see several things clearly demonstrated.
First, the business reason itself. It needs to be specific and genuine. A vague sense that things ‘aren’t working out’ won’t cut it. Ask yourself whether another reasonable employer in your position would consider the reason serious enough to justify dismissal.
Second, a fair process. The employee must be told the reason for the potential dismissal and given a real opportunity to respond. The final decision should be made by someone with the authority to make it.
Third, evidence that you considered alternatives. If there were other options available, you’ll need to explain why dismissal was the route you chose. A tribunal will want to understand your thinking.
Then there’s the documentation. Write things down as they happen. Record the business reason, the steps you took, the employee’s response and the outcome. If there’s an appeal, document that too. Pulling together paperwork months later for a tribunal bundle is not a good look. As part of our HR consultancy services in Edinburgh, we regularly help business owners build this kind of evidence trail from the outset.
Common mistakes that lead to tribunal claims
We see a pattern with SOSR dismissals that go wrong. The mistakes tend to be similar.
- Reaching for SOSR without being able to clearly state the specific business reason. If you can’t explain it in a sentence or two, it’s worth pausing.
- Cutting corners on process because the reason felt obvious. It might be obvious to you, but a tribunal will want to see that you followed a fair procedure regardless.
- Failing to give the employee a proper chance to respond. Even if you’re confident in your decision, the employee needs to hear the reason and have the opportunity to put their side across.
- Skipping over whether there were alternatives to dismissal.
- Documenting the decision after the fact, rather than recording things as they unfold, which can seriously undermine your case.
When to seek support
The single most important piece of advice we can offer is to get help before you start the process. Once you’ve had a conversation with the employee or put something in writing, your options become much more limited.
It’s worth reaching out for support if:
- You’re unsure whether your reason genuinely qualifies as SOSR
- The employee has a protected characteristic that could add complexity
- A client or third-party relationship is involved in the reason for dismissal
These situations need careful handling, and getting the approach right from the beginning makes a real difference to the outcome.
Let’s talk before you act
If you’re thinking about dismissing someone and you’re not sure which category the reason falls into, please do get in touch.
As an outsourced HR consultancy in Edinburgh, we can help you work through the situation, identify the right approach and make sure your process is solid before you take any steps.
We’d much rather have that conversation with you now than see the situation become more difficult further down the line.
Contact us at letstalk@albanyhr.com or call 0131 364 4186 to talk it through.
