An irretrievable breakdown in the employment relationship refers to a situation where the trust and confidence between the employer and employee have been permanently damaged. This is often cited as the basis for dismissal under the “some other substantial reason” (SOSR) category, as outlined in Section 98(1)(b) of the Employment Rights Act 1996 (ERA).
In Alexis v Westminster Drug Project, the claimant’s employment was terminated because the employer believed the relationship had broken down irreparably.
Why is Irretrievable Breakdown Important?
Understanding when an irretrievable breakdown occurs is essential for employers seeking to avoid unfair dismissal claims. The Alexis case highlights the importance of having reasonable grounds to believe the relationship has broken down.
Employers must ensure they act in good faith and follow a fair process. Failing to do so may lead to a ruling of unfair dismissal.
Legal Framework and Recent Changes
The legal framework for assessing whether a dismissal is fair due to an irretrievable breakdown is governed by Section 98 of the Employment Rights Act 1996. Under Section 98(1), employers must show that the reason for dismissal falls within a valid category, such as SOSR.
In Alexis v Westminster Drug Project, the Employment Appeal Tribunal (EAT) clarified several important points about SOSR dismissals:
- Reasonable Grounds: Employers must have a reasonable belief that the employment relationship has irreparably broken down.
- Fair Process: Employers must follow a fair procedure, giving the employee a chance to present their side.
- Length of Service: In this case, the claimant’s length of service didn’t affect the fairness of the dismissal, as the breakdown in trust was deemed irreparable.
What Employers Need to Know
For employers, it’s critical to:
- Assess the Situation Objectively: Ensure there is genuine evidence that the trust and confidence in the employment relationship are irreparably broken.
- Follow Fair Procedures: Employers must conduct a thorough investigation and allow the employee to respond to any allegations.
- Consider Alternatives: Before deciding on dismissal, employers should explore alternatives like mediation or redeployment. Alexis highlights that dismissal should be a last resort.
- Document Everything: Employers should maintain thorough records of all meetings, discussions, and decisions made throughout the process.
Common Mistakes and How to Avoid Them
Employers often make these mistakes:
- Relying on Emotional Responses: Dismissing employees based on emotional reactions or assumptions can lead to unfair dismissal claims. Employers must rely on objective evidence and clear facts.
- Failing to Follow Procedure: Not conducting a fair hearing or offering an appeal process can render a dismissal unfair, even if the grounds for it are legitimate.
- Overlooking Employee Rights: Employers must ensure that employees are given the opportunity to present their case before making any dismissal decisions.
Summary and Call to Action (CTA)
Key Takeaways:
- An irretrievable breakdown in the employment relationship can justify dismissal under SOSR.
- Employers must have reasonable grounds for the breakdown and follow a fair process.
- Dismissal should be a last resort after considering alternatives.
- Thorough documentation is vital to defending against future tribunal challenges.
Need expert advice? Contact DPH Legal today for tailored support on handling employment disputes and unfair dismissal claims.
