Capability and ill health dismissal: What it really means for a business

Over recent months we’ve experienced an increase in enquiries on our advice line regarding capability and ill health dismissal – also known as ill-health dismissal. Capability and ill health can be a challenging issue to manage and is driven by specific procedures that are crafted to strike the right balance between an employer’s organisational needs and an employee’s right to work and receive fair treatment.

What is capability dismissal or ill-health dismissal?

This is the dismissal of an employee who is suffering with a long-term health condition and is therefore unable to return to work or isn’t well enough to return to their full role. 

In this scenario, an employer should be mindful of potential disability discrimination under the Equality Act (2010) and seek specialist employment law advice from their HR department or from our HR Consultancy team at Howden.

How can it impact organisations?

It can be difficult to manage the work of an employee who is on long-term sick leave or unable to carry out their full duties. There may not be another employee who can cover the work, or perhaps no-one else in the organisation has the specific skills or experience of the employee. Furthermore, there may not be budget to provide overtime or temporary cover to make up the shortfall. This could lead to a significant and potentially costly gap in the organisation’s structure.

Assessing the alternatives to ill-health dismissal

As an HR solutions provider, we’ve seen a large number of cases of employees with long-term or serious health conditions who aren’t fit to return to working in their current role. One suggestion or solution is that the employer should look at what other vacancies they have within the organisation and assess whether the employee is suitable for one of these alternative positions. If an employee is not assessed to be suitable for a different vacancy, and reasonable adjustments cannot be made to the existing role, an employer may consider whether capability dismissal is appropriate in this scenario. 

Finding workable workplace solutions

We were presented with the recent case of an SME client who wanted to help an employee with a long-term health issue. The employee sometimes struggled with the public transport commute into the office, which in turn impacted overall performance. We were on hand to facilitate a workable solution. A reasonable adjustment was put in place so the employee could start work a little later and finish a little earlier, to avoid the busiest commuting periods. They were also supported in working from home on days when they were having a particularly difficult time. 

Although the employee worked fewer hours, their overall improved attendance was more beneficial for the organisation as they were not an employee short – either on a temporary or permanent basis. Furthermore, the employee felt that their employer cared about their wellbeing and supported them. 

Our advice

If you’re involved in a business or organisation that’s dealing with similar issues or is trying to manage a capability-related dismissal, we suggest you get in touch with our specialist team here at Howden. We recognise that every situation is different and should be dealt with fairly and appropriately. And you can rely on us to ensure you follow a fair and legally compliant process that protects both your business and your employees.