SOSR Dismissal: What It Is, When to Use It and How to Evidence It

That is a risky way to use it.

If you reach for SOSR as a "we will work it out later" reason, a tribunal will take it apart very quickly. And with the unfair dismissal compensation cap being removed from January 2027, getting it wrong is about to become considerably more expensive.

Under the Employment Rights Act 1996, there are five potentially fair reasons for dismissal. Conduct, capability, redundancy, breach of a statutory restriction, and SOSR. If the reason does not fit any of the first four, you need to be able to justify exactly why it still counts as substantial. That means a process and a paper trail that will hold up under scrutiny.

What SOSR actually covers

SOSR is deliberately broad. In practice, it is commonly used for situations such as:

• A genuine business reorganisation that does not meet the legal threshold for redundancy
• A breakdown in trust and confidence involving a third party, such as a key client refusing to continue working with a particular employee
• The expiry of a fixed-term contract where there is a genuine reason for not renewing it
• A conflict of interest, for example, an employee's partner working for a direct competitor in a sensitive role

In each case, the reason is real, specific and can be clearly explained.

What SOSR is not

SOSR is not a way to rescue a conduct or capability dismissal that was not handled properly.

Relabelling a flawed dismissal will not protect you. Tribunals look at the substance of what happened, not the label at the top of the letter.

If the real reason was performance, the tribunal will expect to see a capability process. If it was behaviour, they will expect a conduct process. Calling it SOSR does not remove that expectation.

What you need to evidence

If SOSR genuinely is the right category, you still need to prove it properly. There are no shortcuts.

A genuine reason. One that a reasonable employer in your position would consider justified dismissal, not simply one that was convenient at the time.

A fair process. The employee was told the reason, given a real opportunity to respond, and the decision was made by someone with the authority to make it.

Alternatives considered. If dismissal was not the only option available, expect to be asked why those alternatives were ruled out.

Documentation. The business reason, the process followed, the outcome and any appeal, recorded as things happened. Not reconstructed three months later for a tribunal bundle.

Where SOSR dismissals usually fall apart

These are the five mistakes we see most often:

• Reaching for SOSR without being able to state the specific business reason clearly
• Shortcutting the process because the reason felt obvious at the time
• Not giving the employee a genuine chance to respond
• Skipping any consideration of whether dismissal was the only option
• Writing up the decision after the event rather than documenting it as it happened

If any of those feel familiar, you are not alone. But you would be the one explaining them to an employment judge.

When to get advice

The right time to get advice is before the process starts. Once the employee has been told something and you are several weeks in, the options narrow considerably.

It is particularly worth taking advice if:

• You are not sure whether your reason genuinely qualifies as SOSR
• The employee has a protected characteristic that could complicate the situation
• A client or other third-party relationship forms part of the reason for dismissal

How we can help

We advise on dismissal processes, including SOSR, help you build the evidence trail you need and make sure the procedure holds up before you act, not after.

If you are considering a dismissal and are not sure which category it falls into, get in touch before you start. That conversation is far easier to have now than after a claim arrives.

Get in touch for a confidential chat today.

📞 0161 757 7576
📧 info@hrtoolbox.co.uk
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