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Tags: Korpysa v Impact Recruitment Services, SOSR dismissal, unfair dismissal
Categories: Employment Law, Newsletters
Facts: The employee, Ms Korpysa, worked for Impact Recruitment Services Ltd (Impact) and was placed with Howden Joinery Ltd as a warehouse operative. When Howdens no longer required her help, she contacted Impact. During her conversation with Impact, it (later) claimed she asked for her holiday pay and P45, suggesting that she had found another job and had resigned. Ms Korpysa denied this, insisting she had never resigned or requested a P45. Ms Korpysa brought claims for unfair dismissal and age discrimination.
Tribunal decision
The Tribunal upheld her unfair dismissal claim (but dismissed her age discrimination claim). It said that Impact’s mistaken belief that she had resigned was not a fair reason for dismissal under the Employment Rights Act 1996 (ERA). Impact appealed.
EAT decision
The EAT disagreed with the Tribunal. It said that a genuine but incorrect belief that an employee has resigned could amount to ‘some other substantial reason’ (SOSR) for dismissal under section 98(1)(b) of the ERA.
The EAT noted that the threshold for what counts as a ‘substantial’ reason is relatively low (but did also caution that in some cases, even if a reason could potentially meet the SOSR definition, a tribunal might still decide it isn’t substantial enough in that specific situation).
In this case, the Tribunal had failed to consider;
1.if the employer had shown that the factual reason for dismissal was SOSR (the mistaken belief in resignation) and
2. whether the employer acted reasonably in the actions it took (based on that mistaken belief) so that the dismissal was fair.
The case was remitted to a fresh tribunal to consider these points.
Implications:
This is helpful confirmation that a genuine but mistaken belief that an employee has resigned can be a fair reason for dismissal (SOSR).
The case also highlights that the bar for a reason to qualify as SOSR is fairly low (though employers must still prove the reason was substantial and that the dismissal was reasonable overall).
In practice, employers should clarify resignations immediately rather than waiting for an unfair dismissal claim. Always confirm resignations in writing and keep clear records. Relying on assumptions can lead to disputes, and even though a mistaken belief may be a fair reason for dismissal, employers must still show they acted reasonably (and spend the time and cost defending a tribunal claim).
5.0/5