Dismissed while still entitled to sick pay: bus driver wins unfair dismissal claim
A bus driver with six years' service was unfairly dismissed while on long-term sick leave for mental ill health. The tribunal awarded £19,580.63 in compensation, including underpaid notice and holiday pay.
1 min read · Last updated 18 May 2026
Case details
- #long-term-sickness
- #mental-ill-health
- #notice-pay-underpayment
- #holiday-pay-underpayment
- #sick-pay-entitlement
- #mitigation-of-loss
Key facts
- The claimant worked as a bus driver for the respondent from June 2015 until his dismissal on 18 January 2022.
- The claimant had been absent from work due to mental ill health since 6 October 2021.
- The respondent dismissed the claimant while he was still entitled to company sick pay.
- The claimant was underpaid notice pay by £1,029.40 and holiday pay by £243.98.
- The claimant found new employment as a bus driver at the end of July 2022, mitigating his loss.
- The tribunal found the dismissal both substantively and procedurally unfair.
Timeline
-
Employment started
The claimant began working for the respondent as a bus driver.
-
Last day at work
The claimant stopped attending work due to mental ill health.
-
Dismissal
The respondent dismissed the claimant while he was on sick leave.
-
Holiday pay paid
The respondent paid £993.52 gross for seven days' holiday.
-
Notice pay paid
The respondent paid £3,470.60 gross in lieu of notice.
-
New employment started
The claimant started work as a bus driver for a different employer, mitigating his loss.
-
Liability and remedy hearing
The tribunal heard evidence and found the claimant's complaints of unfair dismissal and unlawful deductions well-founded.
-
Judgment on remedy
The tribunal issued its remedy judgment, awarding compensation.
-
Correction and reconsideration
Clerical errors were corrected and the respondent's reconsideration application was refused.
The legal issue
The tribunal had to decide the amount of compensation for unfair dismissal, including notice pay and holiday pay, and whether the claimant had mitigated his loss by finding new employment.
The outcome
The tribunal found the dismissal unfair and awarded compensation.
Key reasons:
- The claimant was dismissed while still entitled to company sick pay (18 weeks full pay, 18 weeks half pay).
- The dismissal was both substantively and procedurally unfair.
- The claimant mitigated his loss by starting a new job as a bus driver in July 2022.
Compensation breakdown:
- Basic award: £4,896.00
- Compensatory award: £14,307.25 (including loss of earnings, pension loss, and loss of statutory rights)
- Underpaid notice pay: £1,029.40
- Underpaid holiday pay: £243.98
- Total: £19,580.63
Lessons & takeaways
- Employers should not dismiss an employee while they are still entitled to company sick pay without a very good reason.
- Long-serving employees are entitled to a fair process, including proper consultation and consideration of medical evidence.
- Claimants can recover underpaid notice and holiday pay as part of an unfair dismissal claim.
- Mitigating loss by finding new employment can significantly reduce the compensatory award but does not affect the basic award.
This case shows the risks employers take when they dismiss a long-serving employee during a period of sickness absence without following a fair process. The bus driver, who had worked for Abellio London for six years, was absent due to mental ill health from October 2021. He was still entitled to company sick pay when he was dismissed in January 2022.
What the employer did wrong
Abellio London dismissed the claimant without waiting for him to exhaust his sick pay entitlement or obtaining updated medical evidence. The tribunal found the dismissal both substantively and procedurally unfair. The employer also underpaid the claimant's notice pay by £1,029.40 and holiday pay by £243.98, which were added to the compensation.
The claimant represented himself at the hearing, while the respondent had legal counsel. Despite this, the tribunal found in his favour on all complaints.
Why the result matters
The case highlights that even when an employee is off sick, employers must follow a fair process and consider whether dismissal is reasonable in all the circumstances. Dismissing while the employee is still receiving sick pay is a particular red flag. The claimant's success in finding a new job as a bus driver by July 2022 reduced his loss of earnings, but the basic award and underpayments were still significant.
For employees in similar situations, this case shows that you can challenge an unfair dismissal even if you are off sick, and you may be entitled to compensation for lost earnings, notice pay, and holiday pay.
Similar cases
Dismissed during long-term sickness: disability discrimination and unfair dismissal at Jaguar Land Rover
A production operative with six years' service was unfairly dismissed and discriminated against due to disability-related sickness absence. The tribunal awarded £147,572.75 in compensation.
Constructive dismissal after eight-month wait for grievance outcome
An NHS employee resigned after waiting nearly eight months for her grievance outcome. The tribunal found she was constructively unfairly dismissed and awarded £3,756.60.
Agency worker's multiple claims struck out: no jurisdiction and out of time
An agency worker who worked for less than two years had his unfair dismissal, unpaid wages, and breach of contract claims dismissed by the tribunal, along with human exploitation allegations which the tribunal had no power to hear.
Dismissed without a disciplinary hearing: procedural unfairness costs employer £9,500
A former employee with two years' service was unfairly dismissed after being suspended and then sacked without any disciplinary hearing. The Cambridge tribunal awarded £9,546.81 in compensation.