SOSR dismissals not within ACAS grievance code: EAT

In Phoenix House Ltd v Stockman (UKEAT/0264/15/) the EAT found that the ACAS Code on Disciplinary and Grievance Procedures did not cover “some other substantial reason” (SOSR) dismissals.

The introduction to the ACAS Code states that it “sets out principles for handling disciplinary and grievance situations in the workplace. The code does not apply to dismissals due to redundancy or the non-renewal of fixed term contracts on their expiry”.

This summary, however, is silent on whether the principles in the code apply when there has been a dismissal for other substantial reasons such as a breakdown in trust and confidence.

The clarification by the EAT is important, as a failure to follow the code carries potential financial penalties as tribunals can adjust compensation awards by up to 25% if they find that the employer has acted unreasonably in relation to the principles set out in the code.

This follows the decision in Holmes v Qinetiq (UKEAT/0206/15/) where it was held that the ACAS Code did not apply to a dismissal for genuine ill health, without issues of poor performance.