How to handle sickness-related dismissals and avoid legal risks
Deciding what to do about an employee who won’t be able to return to work as a result of illness, and avoiding common legal mistakes, is tricky.
Dismissing an employee due to long-term sickness is a complex and sensitive process, and failure to follow the correct procedures can lead to claims of unfair dismissal or disability discrimination.
To safeguard against these risks, employers must make sure that sickness-related dismissals are handled fairly, with due process and comprehensive documentation.
To help you, Fiona Wheeler, an employment solicitor at Helix Law, a UK-based law firm specialising in complex litigation and dispute resolution explains the legal considerations your business needs to take into account and how to dismiss an employee fairly for long-term sickness.
The legal considerations and compliance
Before considering dismissing an employee, employers must assess whether the employee’s condition qualifies as a disability under the Equality Act 2010. If it does, the possibility of making reasonable adjustments to help the employee return to work must be explored first.
Employers should also follow internal absence management policies to ensure consistency and fairness in decision-making.
Explore reasonable adjustments and alternative roles
If an employee’s illness is affecting their ability to work, employers must first explore whether they can make reasonable adjustments to the employee’s role to allow them to return to work. These adjustments could include changing the employee’s work schedule or duties, implementing a phased return-to-work plan, allowing the employee to work remotely, or providing additional support or training.
If adjustments aren’t enough to enable a return to work, employers should consider whether they can offer the employee an alternative role within the company. Dismissal should be a last resort after all other options have been thoroughly examined.
Follow a fair and structured process
A fair and legally sound dismissal process includes the following steps:
- Medical Assessment: Obtain professional medical advice to assess the employee’s condition and their likelihood of returning to work.
- Formal Review Meetings: Hold discussions with the employee to explore adjustments, alternative roles, and their personal circumstances. Employees have the right to bring a representative to these meetings.
- Final Decision And Written Notification: If dismissal is unavoidable, communicate the decision in writing, explaining the reasons, notice period, and any entitlements. Employees should also be informed of their right to appeal.
Minimise legal risks and settlement agreements
Dismissing an employee on long-term sick leave can be legally complex, as employers who fail to follow proper procedures risk facing claims for unfair dismissal or discrimination.
One way to mitigate these risks is by offering a settlement agreement, where the employee receives financial compensation in exchange for waiving any legal claims. This can provide financial security for the employee while reassuring the employer that legal action will not be taken.
Reduce your risk of disputes
Dismissals due to long-term sickness must be handled with fairness and empathy, but also legal awareness. Employers who maintain open communication, document every step thoroughly, and make sure all reasonable adjustments are considered will significantly reduce their risk of legal disputes.
Additionally, following a well-managed and fair process sends a clear message to remaining staff that the business values fairness and integrity. Companies that handle these situations with sensitivity can also improve their reputation, making them more attractive to current and future employees.
Helix Law is a UK-based law firm specialising in complex litigation and dispute resolution. They offer services in commercial disputes, debt recovery, property issues, construction, and employment law.
