What is a Section 278 Agreement?

A Section 278 Agreement is a legal agreement between a developer and a highway authority to carry out highway works.

How To Dismiss Fairly When The Working Relationship Breaks Down

Employees who have worked for a company for over two years are protected by law against unfair dismissal. This means that if an employer wants to dismiss such an employee, they need to:

Have a valid or ‘fair reason’ for the dismissal.
Show that the dismissal was handled reasonably.

There are five fair reasons for dismissal, one of which is known as “some other substantial reason” (SOSR). SOSR is often used when the relationship between the employee and employer has broken down completely, making it impossible to work together.

In the recent case of Alexis v Westminster Drug Project, 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 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.

HR can take the following points from this case:

If trust and confidence are completely lost in the employment relationship, dismissal may be justified under SOSR.

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.

Employers should document clear evidence of the breakdown and the steps they took to assess the situation.

Length of service is not always a required consideration—only if it is relevant in some way to the dismissal decision.