How to handle dismissals when workplace relationships break down

Currently employees who have worked for a company for over two years are protected by law against unfair dismissal (and when the Employments Rights Bill is finalised this is likely to be reduced to 6 or 9 months). This means that if an employer wants to dismiss employees fairly, they need to:

1. Identify one of the five statutory “fair reasons” for the dismissal.
2. Show that the dismissal was handled reasonably in all the circumstances. 

Many of the reasons are well known, such as “redundancy”, but there is also a catch-all category of “some other substantial reason” (SOSR). SOSR is often used when the relationship between the employee and employer has completely broken down, making it impossible to work together.

In the recent case of Alexis v Westminster Drug Project, (EMPLOYMENT TRIBUNALS) the employer restructured the organisation, and three roles were to be replaced by two new ones. The employees affected, including the Claimant, had to apply and interview for the new positions. The Claimant didn’t get the job. She had dyslexia and complained about the interview process, saying she should have received the questions 24 hours in advance.

After raising a grievance and appealing the outcome unsuccessfully, she began sending numerous emails to the decision-makers. This behaviour led the employer to call a meeting to discuss whether she could continue in her role. The employer concluded that the relationship had broken down beyond repair and dismissed her with notice for SOSR. The Claimant then brought an unfair dismissal claim.

The tribunal rejected her claim, and the Employment Appeal Tribunal (EAT) agreed. The EAT found that:

• Relationship breakdown justified dismissal: The employer had reasonable grounds to decide that trust and confidence had been lost, and the relationship had reached a point of no return. In such cases, dismissal is a reasonable step.
• Length of service may not matter: The Claimant argued that her long service should have been considered, but the EAT explained that length of service only matters if it is relevant to the decision. Here, the dismissal was due to the irretrievable breakdown of the relationship, so her service length wasn’t a factor. 
• No need to consider alternatives: Once the relationship was irreparably damaged, the employer didn’t need to explore alternative options to dismissal as they would be obliged to in a redundancy situation. 

The key lessons from this case are: 

• If trust and confidence are destroyed in the employment relationship, dismissal may be justified under SOSR.
• Employers should document clear evidence of the breakdown and the steps they took to assess and resolve the situation.
• Length of service is not always a crucial consideration—only if it is relevant in some way to the dismissal decision.
• Unlike dismissals for capability or misconduct, employers don’t need to jump through additional steps or explore alternatives when they have clear evidence the relationship has broken down.

If you are struggling with team relationships or considering dismissal, please contact our team today so we can walk you through the process. hello@fentonelliott.co.uk or 01635 896336.