Search

How can we help?

Icon

ACAS Code does not apply to SOSR dismissals

The Employment Appeal Tribunal in Phoenix House Ltd v Stockman & Anor upheld a Tribunal’s decision that the dismissal of an employee on the basis of an irretrievable breakdown in the working relationship was unfair but disagreed that the ACAS Code of Practice on Disciplinary and Grievance Procedures applied to such a situation. 

In this case, there was a dispute between the Claimant and her colleagues which resulted in the Claimant being dismissed based on an irretrievable breakdown in the working relationship with the Company.  The Tribunal cited four reasons for its conclusion that the dismissal was unfair, namely that the ACAS Code was not followed, that the disciplining officer had started from the position that the relationship had broken down and put the burden on the Claimant to prove otherwise, that matters of which the Claimant was unaware were taken into consideration (and thus she was not given adequate opportunity to challenge assertions made about her) and that the decision was outside the range of reasonable responses an employer would make.

The decision was upheld on appeal but the EAT disagreed that the ACAS code applied to the dismissal.  It cited recent cases which had discussed the potential for the Code to apply to SOSR dismissals (such as Hussain v Jurys Inns Group and Lund v St Edmond’s School – see our previous blog here).  However, the EAT said that in its judgment the Code did not apply to SOSR dismissals and that clear wording would be required to give effect to such an outcome.  It recognised that elements of the Code are capable of being, and should be, applied (for example, in this case, giving the employee the opportunity to demonstrate that she could fit back into the workplace without undue disruption) but said that to go beyond that and impose a sanction because of a failure to comply with the letter of the ACAS Code was not what Parliament had in mind.  

Chambers and Partners

The Clarkslegal team are commercial and good to work with. They get what our business needs and tell me what I need to hear.

This literal approach provides some clarity for employers on SOSR dismissals, however, the case itself is also a warning of the difficulty in dismissing fairly for a breakdown in the working relationship, in particular. Whilst this type of dismissal can amount to an SOSR (and thus is potentially a fair reason to dismiss), employers should be cautious about finding an irretrievable breakdown too readily. It is also clear from the judgment that  employers will be expected to follow a fair process for SOSR dismissals  which may well include taking some of the steps set out in the Code.

Employmentbuddy.com 

Disclaimer

This information is for guidance purposes only and should not be regarded as a substitute for taking legal advice. Please refer to the full General Notices on our website.

Author profile

Monica Atwal

Managing Partner

View profile

+44 118 960 4605

About this article

Read, listen and watch our latest insights

art
  • 30 September 2026

Clarkslegal celebrates strong results in the Legal 500 UK 2027

Clarkslegal would like to thank its clients for the outstanding feedback that contributed to the firm’s recognition in the Legal 500 UK Solicitors 2027 Guide. We are proud to be recognised across five key practice areas: Litigation, Property, Corporate & Commercial, Employment, and Immigration.

art
  • 29 September 2026
  • Employment

New bereavement leave rights for pregnancy loss

The Government have announced that in April 2027 they will be introducing a new right to bereavement leave to include those who suffer pregnancy loss before 24 weeks. This has been announced in their response to their consultation on bereavement leave “Make Work Pay: Leave for bereavement including pregnancy loss”.

art
  • 25 September 2026
  • Employment

Consultation response on duty to inform workers of right to join a union

The Employment Rights Act 2025, makes it a requirement for employers to inform workers of their right to join a trade union at the same time as the Section 1 particulars are issued to them and at subsequent times. The details of this new duty are to be provided in regulations.

art
  • 24 September 2026
  • Public Procurement

Procurement challenges: What documents and information are bidders entitled to?

A tricky feature of public procurement challenges for unsuccessful bidders is that contracting authorities usually hold all the cards. When the outcome of a tender conducted under the Procurement Act 2023 has been decided, authorities must provide bidders with an Assessment Summary containing their scores for each of the award criteria and those of the successful bidder and an explanation for those scores.

art
  • 23 September 2026
  • Corporate and M&A

GDPR Privacy Policies: Key requirements for organisations

When an organisation is creating a website or app to reach users or potential customers drafting a Privacy Policy may be an afterthought. However, failure to write a Privacy Policy, which complies with the relevant legislation, can have serious consequences.

Pub
  • 17 September 2026
  • Employment

Employment law changes in 2026: What you need to know

Stay ahead of the latest UK employment law changes. Watch our on demand webinar with Monica Atwal and Harry Berryman covering key HR developments and employment law updates for 2026.