Dismissal for Some Other Substantial Reason (SOSR) letter template

What is this for?

The Dismissal for Some Other Substantial Reason (SOSR) Letter serves as a formal communication notifying an employee about the termination of their employment based on reasons not linked to misconduct or poor performance.

This letter outlines the substantial reasons leading to the dismissal and ensures compliance with employment laws.

Its purpose is to convey the decision with clarity, maintaining transparency while adhering to legal requirements during the termination process for substantial reasons beyond traditional categories.

Your reasons for making this decision could include:

• A conflict of interest in continusing to employ someone.
• A continued risk to company reputation.
• The employe's refusal to accept modified terms and conditions.
• The end of a temporary role to cover an absent employee.
• Third party pressure to remove the employee.

Dismissal for some other substantial reason (SOSR) is a catch-all category that allows employers to end an employment contract when no other possible fair grounds exist. The SOSR is determined by the facts and circumstances of each individual case. Although there is no useful legislative definition of the term 'substantial' precedents indicate that the reason cannot be frivolous or small.

In practice, SOSR dismissal could include situations where:

• There is a conflict of interest in continuing to employ the employee. When workers have an outside interest in a competitive firm or have a personal connection or link to someone who works for a competitor, a scenario may occur where the goals of two separate parties clash.

• Risk to one's reputation. This happens when continuing to employ the employee jeopardises your company's image. This is a highly fact-sensitive case, however if you work in a sector that demands a high degree of protection or confidence, it is more probable that if an employee's behaviour violates the requisite level of confidence and trust, their dismissal will be considered as reasonable.

• The company want to modify the employee's terms and conditions, but the employee refuses to accept the new terms. If an employee refuses to accept a change in their terms and conditions, the only choice may be to give them notice of termination and offer to re-engage them on new terms. This is referred to as 'fire and rehire.' To establish that this is a reasonable grounds for dismissal, you must be able to show that you implemented the adjustments for 'sound business reasons.'

• Return to the job of the individual they were hired to replace. If you hire someone as temporary cover for a permanent employee who is on family leave, for example, and then fire them for an SOSR cause, it is probable that they will be considered fair. It is best to ensure that they are aware that the permanent employee will return and that covering their absence is the goal of their work from the start.

• A third party is putting pressure on you. This may occur if a customer refused to work with a company unless the employee was fired. This is perhaps the most prevalent circumstance in a small firm, and it frequently occurs in industries where the employer supplies staff to work on the sites of customers or clients, such as maintenance personnel, contract cleaners, or security guards. In these cases, if the client states they no longer want the employee to work on their site and there is no alternative place for them to work, the SOSR dismissal is likely to be ruled fair.

Fairness is not the only factor to consider. Before terminating an employee, employers must act appropriately and follow an acceptable process. Alternatives to dismissal, such as transferring the employee to another location or department, should always be examined before resorting to dismissal. However, whether or not this is possible is dependent on the organisation's resources and size.

It is also critical to ensure that dismissal is the only option available. This means you must have provided proper warnings or considered other options, such as relocating the person within the organisation, before resorting to dismissal.