ACAS Code does not apply to breakdown in working relationship dismissal

We report on a further case about the ACAS Code, which follows hot on the heels of Holmes.

This case deals with one of the questions left unanswered by Holmes, namely what happens in the case of SOSR (some other substantial reason) dismissals?

In this case, the Claimant Ms Stockman was dismissed by Phoenix House Limited on grounds of an irretrievable breakdown in the working relationship.

Background

The ACAS Code of Practice on Disciplinary and Grievance Procedures is clear that it only applies in the disciplinary context, and this was clarified in the case of Holmes, which held that there needs to be some form of culpable conduct that is being addressed for the Code to apply.

In this case, Ms Stockman had raised a grievance against the company’s finance director (she was a financial accountant), Mr Lambis. She also confronted him while he was in a meeting with another person, and was subject to a disciplinary process for this.

Ms Stockman was absent on sick leave while the disciplinary process was taking place, and she was dismissed in her absence on the basis of an irretrievable breakdown in the working relationship.

The EAT decided that the ACAS Code did not apply in this case. The EAT’s reasoning was that, because the application of the ACAS Code could result in a stiffer financial penalty for employers (an uplift of up to 25% on any award) clear wording would need to be found in the legislation enabling this. Because the ACAS Code does not specifically include SOSR dismissals, the EAT therefore decided that the intention must have been to exclude them. This is in contradiction with a previous case (Hussain) with which the EAT “respectfully disagreed”.

The EAT also went on to find that there had been no unfair dismissal in this case. They said that no reasonable employer could have come to the conclusion that the working relationship had irretrievably broken down. Ms Stockman did not necessarily have to come into day to day contact with Mr Lambis. Furthermore, there was no evidence that she could not work harmoniously with her immediate manager who was a different person.

Implications

While this case gives some clarity as to the applicability of the ACAS Code, it also provides a warning to employers that they should think carefully about dismissing employees on grounds of an irretrievable breakdown in the working relationship. The Courts will see this as a drastic step and although dismissals for this reason can potentially be fair, there is a high standard for this.

< Older Post Newer Post >

A black and white photo of the big ben clock tower

Labour’s First 100 Days in Employment Law: A review of Progress to Date and What Lies ahead in the next 12 – 24 months

By Louise Maynard • October 28, 2024

The Labour Party came into power in 2024 with a promise of substantial reforms aimed at enhancing worker’s rights, improving work-life balance, and addressing inequalities in the workplace.

A woman is sitting in a chair talking to a man.

Supporting Mental Health in the Workplace: A Legal Framework for Employers

By Yeing-Lang Chong • October 10, 2024

Mental health is an increasingly important issue in the workplace, affecting employees’ wellbeing, productivity, and overall satisfaction. As more employees speak up about their struggles, UK employers must ensure they are providing a supportive environment while adhering to legal responsibilities. The legal framework surrounding mental health in the workplace is clear, but understanding how to apply it practically is key to preventing discrimination and promoting a healthy work culture. With World Mental Health Day on 10th October, now is the perfect time for employers to review their obligations and strategies for supporting mental health in the workplace.

An empty office with a desk and chair in front of a window.

Handling Mental Health-Related Absences: Best Practices and Legal Obligations

By Yeing-Lang Chong • October 9, 2024

Handling Mental Health-Related Absences: Best Practices and Legal Obligations Mental health-related absences are a common challenge for employers, as mental health conditions can lead to prolonged or frequent time off work. Understanding how to handle these absences with compassion while fulfilling legal obligations is crucial for maintaining a supportive work environment and avoiding potential legal pitfalls. As we approach World Mental Health Day on 10th October, this article outlines best practices and key legal responsibilities for UK employers when managing mental health-related absences.

A woman is comforting a man who is sitting at a desk with his head in his hands.

Mental Health Discrimination in the Workplace: UK Legal Protections

By Emily Kidd • October 8, 2024

In the UK, mental health discrimination in the workplace is a growing concern as more employees speak up about their struggles with mental health issues. World Mental Health Day, observed on 10th October, provides an opportunity to reflect on the legal protections in place to safeguard employees from discrimination and to promote mental wellbeing in the workplace. This article will explore the legal framework surrounding mental health discrimination, including how the law defines mental health disabilities, employers' responsibilities, and steps businesses can take to prevent discrimination.

A man is sitting in a chair while two women comfort him.

Reasonable Adjustments for Mental Health: A Guide for UK Employers

By Marianne Wright • October 7, 2024

Supporting employees with mental health conditions is not just an ethical responsibility for UK employers; it’s a legal obligation under the Equality Act 2010. As we approach World Mental Health Day on 10th October, it’s crucial for employers to understand what reasonable adjustments are, how they can be applied to mental health, and the steps they should take to comply with UK law while fostering an inclusive and supportive work environment.

A group of people are sitting around a table with their hands on each other.

How the Equality Act Protects Employees with Mental Health Conditions

By Marianne Wright • October 7, 2024

The Equality Act 2010 is a key piece of legislation in the UK that aims to protect employees from discrimination in the workplace. While much of the focus on this Act has been on physical disabilities, mental health conditions are also covered under its provisions. As we approach World Mental Health Day on 10th October, it’s important to understand how the Equality Act protects employees with mental health conditions, and what employers must do to ensure they meet their legal obligations.

A group of people are clapping their hands in an office.

Workplace Stress and the Law: How Employers Can Support Employee Wellbeing

By Marianne Wright • October 7, 2024

In the modern workplace, stress is often considered an inevitable part of the job. However, when stress becomes overwhelming, it can lead to significant mental health issues such as anxiety, depression, and burnout. In the UK, employers have a legal responsibility to manage workplace stress and support employee wellbeing. As we approach World Mental Health Day on 10th October, this article explores the legal framework around workplace stress and provides guidance on how employers can take steps to create a healthier, more supportive work environment.

A man in a wheelchair is sitting at a table with other people.

Expanding the Scope of Indirect Discrimination Claims: Implications for Employers

By Springhouse Solicitors • October 2, 2024

The British Airways Plc v Rollett & Others ruling underscores the importance of focusing on the actual disadvantages caused by workplace policies. Employers are now obliged to be more vigilant in assessing the broader impacts of their decisions, ensuring equity and fairness for all employees, regardless of whether they possess a protected characteristic under the Equality Act 2010. By proactively addressing these considerations, employers can foster a more inclusive work environment and mitigate the risk of indirect discrimination claims.

A woman is sleeping at a desk in front of a laptop computer.

Shift Work, Burnout, and Your Rights: Navigating the Challenges of Healthcare Employment

By Marianne Wright • August 11, 2024

Shift work is a necessity in the healthcare sector, ensuring round-the-clock care. However, long hours, night shifts, and irregular schedules can take a significant toll on healthcare workers' physical and mental health, increasing the risk of burnout. This article outlines your legal rights regarding rest breaks, the impact of shift work, and your employer's obligations to minimise the risks.

Mental Health at Work: Legal Obligations and Best Practices for UK Employers

By Yeing-Lang Chong • August 11, 2024

Mental health conditions are becoming increasingly prevalent in UK workplaces, with far-reaching consequences for employees, businesses, and society as a whole. Employers have a duty of care towards their employees' mental wellbeing, and certain mental health conditions may also be recognised as disabilities under the Equality Act 2010.