Reason for Dismissal and zero compensation even where dismissal was unfair

Reason for Dismissal and zero compensation even where dismissal was unfair

The Appeal Tribunal ruled last week on the question of dismissals for Some Other Substantial Reason (SOSR).

SOSR is a category of justifiable dismissal just like misconduct or poor performance. However, it is a catch all category for dismissals that do not fall into the other main categories. For this reason it is rarely given as justification for a dismissal.

This case concerned a man employed by a school, who was later elected as full time Mayor for Liverpool. He was dismissed because he was paid an allowance by the school of £4,500 but because of his duties as Mayor, the school received no benefit for its payment to him. He was therefore dismissed.

While the dismissal was procedurally unfair, the Appeal Tribunal agreed that the reason was fair, and a proper procedure would have made no difference. The employees compensation was therefore reduced by 100%.

While it is interesting to see where a SOSR dismissal was successful, the noteable thing for employers is the reduction of compensation so that the employee got nothing.  This is called a Polkey reduction and will often be applied by a tribunal where the employee wins only on a technicality.

The case can be read at the following link:

http://www.bailii.org/uk/cases/UKEAT/2015/0206_14_1404.html

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