How to Draft a Long-Term Sickness Dismissal Letter
Dismissing an employee due to long-term sickness is one of the most challenging tasks for any employer. It requires a careful balance between empathy for the employee’s situation and adherence to legal obligations, including following a fair process. Particular care will be required to avoid disability discrimination claims if the employee has a long-term condition meeting the definition of disability under the Equality Act 2010 (EqA 2010).
A well-drafted dismissal letter should be the final step in a long and well-consdiered process. It delivers the company’s decision and protects it from potential legal disputes.
In this guide, we’ll explore the steps for handling sickness-related dismissals and provide a detailed breakdown of how to craft a long-term sickness dismissal letter that’s both compassionate and legally sound. For further guidance and support, contact Helix Law.
What Is the Procedure for Sickness-Related Dismissals?
Before even considering dismissing an employee for long-term sickness, you must follow a fair and thorough process of managing sick leave. You should ensure your business has an absence management, sickness or capability policy that sets out how you manage short and longer term sickness absence and you should act in accordance with the policy at all times. This helps ensure that the decision to dismiss is justified and minimises the risk of an unfair dismissal claim. Here’s a step-by-step guide:
Step 1: Assess the Situation and Gather Evidence
The first step is to assess the employee’s situation. You might do this informally at first but if there is no improvement, you would need to follow a formal sickness absence or capability procedure.
This involves gathering medical evidence and understanding the extent and impact of the illness on the employee’s ability to perform their duties and the likelihood of returning in a reasonable timeframe.
You should consult with the employees, their healthcare providers, and occupational health professionals to get a clear picture of the situation. You should also explore all reasonable adjustments that could help the employee return to work before considering dismissal.
Once you have the information, it would be appropriate to hold a first formal review meeting with the employee to discuss the findings in the medical report, consider any reasonable adjustments that would help the employee return to work and set timescales for further review. You can repeat formal reviews as often as you consider necessary before reaching a final decision.
Step 2: Consider Alternative Employment
Depending on the recommendations of occupational health or medical practitioners, you should consider making reasonable adjustments to the employee’s current role, such as a more flexible working pattern or offering a phased return to work.
IBe mindful of your duty to make reasonable adjustments for disabled employees under the Equality Act 2010. An employee is disabled if they have a physical or mental condition which is long-term and which has a substantial effect on their ability to carry out normal day to day activities.
Wherever possible consider all reasonable adjustments which could be made in respect of a disabled employee’s work in order to facilitate their return to work or to assist them after a return to work. Such adjustments may include a reduction in hours, the transfer of certain duties to other employees, physical adjustments and retraining. Such adjustments may be adopted on a temporary or permanent basis depending on circumstances.
If the employee is unable to return to their current job, even with reasonable adjustments in place, bBefore proceeding with dismissal, you must consider whether the employee could perform alternative roles within the organisation.
The aim is to explore all possible options to keep the employee in work.
Step 3: Conduct a Formal Review Meeting
If no reasonable adjustments or alternative roles are available, the next step is to hold a second formal review meeting with the employee. During this meeting, discuss the situation in detail, including the medical evidence, the impact on the business, and any previous efforts to support the employee’s return to work.
The meeting should be conducted with sensitivity, allowing the employee to express their views and concerns. It’s also essential to clearly outline the potential consequences to the employee, including the possibility of dismissal. The employee has the right to bring a companion to any formal consultation meeting.
Step 4: Make the Decision and Communicate It
After the second formal review meeting, consider all the information carefully before making a final decision. It should be communicated to the employee in writing if dismissal is deemed necessary. The dismissal letter should be transparent, compassionate, and legally compliant, providing a full explanation. Dismissal should be a last resort.
Settlement
To avoid the risk of a claim, you may wish to consider offering the employee a settlement agreement to terminate their employment. This would generally involve you offering the employer enhanced compensation for the termination of their role in exchange for them agreeing to waive all claims or potential claims against the employer. It is good for the employee as they leave with a payout and it is good for the business in that they avoid the risk of claims against them.
How to Draft a Long-Term Sickness Dismissal Letter
Once the decision to dismiss has been made, the next step is to draft the dismissal letter. This letter is a formal document that serves as a record of the decision and the reasons behind it. Here’s how to draft a long-term sickness dismissal letter:
Begin with a Clear Statement of the Decision
The letter should begin with a clear statement informing the employee of the decision to terminate their employment due to long-term sickness. It should be straightforward yet sensitive, acknowledging the difficulty of the situation.
Example: “We regret to inform you that, after careful consideration, we have decided to terminate your employment with [Company Name] due to your prolonged absence from work due to illness.“
Provide a Detailed Explanation
Next, provide a detailed explanation of the reasons behind the decision. It should include references to the medical evidence, the impact of the absence on the business, and the steps the company took to support the employee’s return to work.
Example: “This decision was not made lightly. We have taken into account the medical evidence provided by your healthcare providers, the impact of your absence on the business, and the steps we have taken to support your return to work. Unfortunately, despite these efforts, we have been unable to find a way for you to continue in your role or any alternative role within the company.”
Outline the Notice Period and Final Pay
The letter should clearly outline the notice period, including the start and end dates, and details of the final pay, including any outstanding holiday pay, bonuses, or other entitlements.
Example: “You will be given [X] weeks’ notice in accordance with your contract of employment. Your final day of employment will be [Date]. During this notice period, you will receive your full salary, including any outstanding holiday pay and entitlements.“
Offer Support and Next Steps
It’s essential to offer support to the employee during this transition period. It could include providing references, offering outplacement services, or assisting with benefits claims. Additionally, outline the following steps, such as the process for returning company property.
Example: “We understand that this is a difficult time for you, and we would like to offer any support we can during this transition. We are happy to provide a reference for future employment and assist you with any claims for benefits. Please also arrange to return any company property by [Date].”
Right of Appeal
The letter must also outline the right of appeal against the decision. You should set out that any appeal should be set out in writing stating the grounds of appeal and sent to a specified person within 7 days of receiving the decision. Frequently Asked Questions
What Is a Long-Term Sickness Dismissal Letter?
A long-term sickness dismissal letter is a formal document issued by an employer to an employee, informing them of the decision to terminate their employment due to prolonged illness. It outlines the reasons for dismissal, the notice period, and any entitlements and offers support during the transition.
Can I Terminate an Employee on Long-Term Sick Leave?
Yes, an employer can terminate an employee on long-term sick leave, but it must be done fairly and in accordance with legal procedures. This involves following a fair process, including gathering medical evidence, considering alternative roles, conducting a formal review meeting, and providing reasonable notice.
Final Thoughts
Handling a long-term sickness dismissal is never easy, but managing it with both care and legal caution is important. By following the right steps, documenting everything, and communicating openly, you can protect your business and ensure the employee is treated with respect.
If you’re dealing with the challenges of a long-term sickness dismissal, contact Helix Law today. Our expert team is equipped to deal with all issues regarding employment law and is here to help guide you through the process.
