Caretaker with 15 years' service dismissed for long-term sickness: dismissal fair, but holiday pay awarded
A caretaker dismissed after 15 months' sickness absence lost his unfair dismissal claim, but was awarded £1,628.02 for unpaid holiday pay.
1 min read · Last updated 18 May 2026
Key facts
- The claimant was employed as a caretaker from 16 October 2007 until dismissal on 22 September 2022.
- He was continuously absent from 7 June 2021 due to stress at work.
- The respondent obtained multiple Occupational Health reports, the last dated 9 September 2022 stating he was unfit and unlikely to return.
- The claimant raised a formal grievance on 10 October 2019, which was not addressed until February 2022 and rejected in July 2022.
- The dismissal was for capability due to long-term sickness; the tribunal found it fair.
- The claimant was awarded £1,628.02 for unpaid holiday pay.
Timeline
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Employment started
Claimant began working as a caretaker for the respondent.
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Informal grievance raised
Claimant complained about a trainee manager's conduct.
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Informal grievance resolved
Respondent sent letter confirming outcome; claimant moved to new site.
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Formal grievance submitted
Claimant submitted a formal grievance, which was not addressed promptly.
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Sickness absence began
Claimant went off sick with stress, remaining absent until dismissal.
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Grievance rediscovered
During an absence meeting, the respondent noted the grievance had not been addressed.
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Grievance outcome
Grievance not upheld; claimant remained dissatisfied.
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Dismissal meeting
Stage 3 absence management meeting; claimant dismissed on capability grounds.
The legal issue
The tribunal had to decide whether the real reason for dismissal was capability (long-term sickness) or the claimant's grievance, and whether the employer acted reasonably in dismissing him.
The outcome
The tribunal decided that the dismissal was fair. The reason was capability, not the grievance. The employer had obtained multiple occupational health reports, the last stating the claimant was unfit and unlikely to return. The procedure was reasonable in the circumstances.
However, the claimant succeeded on his holiday pay claim. The respondent was ordered to pay:
- £1,628.02 for unpaid holiday pay (subject to tax and NI deductions).
Lessons & takeaways
- If you have a long-term sickness, keep a record of all medical reports and ensure your employer considers up-to-date evidence before making a decision.
- A delay in handling a grievance does not automatically make a subsequent dismissal unfair, if the dismissal is for a separate, fair reason.
- Employers should act promptly on grievances to avoid the risk of them being seen as the real reason for dismissal.
- Even if a dismissal is fair, you may still be entitled to accrued but unpaid holiday pay on termination.
A long-serving caretaker, a delayed grievance, and a fair dismissal
This case shows how a long-term sickness absence can lead to a fair dismissal, even when there are unresolved workplace issues in the background. The claimant, a caretaker with 15 years' service, went off sick with stress in June 2021. He had raised a formal grievance in October 2019 about a trainee manager's conduct, but the council did not address it until February 2022 – a delay of over two years.
Despite that delay, the tribunal found that the dismissal was for capability, not because of the grievance. The council had obtained several occupational health reports, the last in September 2022 stating the claimant was unfit and unlikely to return to work. The tribunal accepted that the council genuinely believed the claimant was no longer capable of performing his duties and that dismissal was within the range of reasonable responses.
What the employer did right – and wrong
The council followed its absence management procedure, held meetings, and obtained medical advice. That was enough to make the dismissal fair. However, the tribunal criticised the delay in handling the grievance, which could have given the impression that the dismissal was linked to it. The key lesson for employers is to deal with grievances promptly, even when the employee is off sick.
On the holiday pay claim, the council had not paid the claimant for accrued leave at termination. The tribunal awarded £1,628.02, reminding employers that holiday pay is a separate entitlement that survives even a fair dismissal.
Why this matters for similar claims
For employees, this case highlights that a long absence and a pending grievance do not automatically make a dismissal unfair. The employer's process and the medical evidence are critical. For employers, it shows that a fair capability dismissal requires up-to-date medical reports and a proper procedure, but that a delayed grievance will not necessarily undermine the fairness of a separate capability decision.
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