Clinic manager with 30 years' service dismissed during restructure: redundancy disguised as capability
A clinic manager who had worked for the NHS for 30 years was unfairly dismissed when her employer restructured her role and then dismissed her on ill-health grounds. The tribunal awarded nearly £300,000 in compensation.
1 min read · Last updated 18 May 2026
Case details
Key facts
- The claimant was employed from 23 November 1987 until dismissal on 22 May 2018 as a Clinic Manager (Band 5, 37.5 hours/week).
- In November 2016 the respondent began a restructuring that eliminated the claimant's role; she was formally at risk from 25 January 2017.
- The respondent offered the claimant a Band 4 part-time Data Lead role, which she repeatedly refused; the respondent nevertheless treated her as having accepted it.
- The claimant was absent sick from 3 April 2017 with stress/depression; she was found to be disabled from 12 January 2018.
- The respondent dismissed the claimant on 22 May 2018 citing ill-health capability, but the tribunal found the real reason was redundancy.
- The tribunal upheld claims of unfair dismissal, discrimination arising from disability, harassment related to age, and unauthorised deductions.
Timeline
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Staff meeting – claimant learns her job may be at risk
At a staff meeting, the claimant was told her Band 5 role would likely be removed; she asked for immediate redeployment but was refused until consultation concluded.
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Formal 'at risk' letter
The claimant received a letter confirming her post would cease to exist and she was formally at risk under the Change Management Policy.
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New structure implemented – claimant loses management duties
The new structure came into effect; the claimant was told she was no longer responsible for managing staff, but remained employed under her original contract.
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Occupational health referral – ill-health retirement box ticked
The claimant attended an occupational health appointment and discovered that Mrs Furlow had ticked a box asking about ill-health retirement; the claimant felt this was age discrimination.
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Claimant refuses Band 4 role
At a meeting, the claimant made it clear she did not want the Band 4 IT & Data Lead role; the respondent knew she had not accepted it.
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Claimant goes off sick – never returns
The claimant was sent home with high blood pressure and began a period of long-term sickness absence that continued until dismissal.
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Pay reduced to Band 4 part-time rate
The respondent implemented the change to the Band 4 role, reducing the claimant's pay; the claimant did not consent.
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Grievance hearing – outcome predetermined
The grievance hearing was held; the tribunal found the panel failed to properly investigate the age discrimination complaint and the outcome was predetermined.
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Dismissal
The claimant was dismissed with immediate effect, ostensibly on grounds of ill-health capability; the tribunal later found the real reason was redundancy.
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Liability judgment
The tribunal issued a reserved judgment upholding claims of unfair dismissal, discrimination arising from disability, harassment related to age, and unauthorised deductions.
The legal issue
The tribunal had to decide whether the claimant was unfairly dismissed and whether the respondent discriminated against her because of age and disability, including whether the real reason for dismissal was capability or redundancy.
The outcome
The tribunal upheld claims of unfair dismissal, discrimination arising from disability, harassment related to age, and unauthorised deductions from wages. Claims of direct age and disability discrimination and victimisation were dismissed.
Compensation was awarded as follows:
- Basic award: £15,240.00
- Total damages: £297,188.25
Lessons & takeaways
- Employers must not use ill-health capability as a pretext when the real reason for dismissal is redundancy – tribunals will look behind the stated reason.
- Long-serving employees (30 years in this case) are entitled to a fair redundancy process, including proper consultation and consideration of alternative roles.
- Reducing an employee's pay without their consent and without a contractual right can amount to an unauthorised deduction from wages.
- Disability discrimination can arise when an employer dismisses an employee for something connected to their disability, such as sickness absence, without making reasonable adjustments.
This case shows how a long-serving NHS clinic manager was treated unfairly during a restructuring exercise. The claimant had worked for the trust for 30 years when her role was eliminated. Instead of following a proper redundancy process, the trust offered her a lower-paid, part-time role and then, when she refused it, imposed it unilaterally and reduced her pay without her consent. When she went off sick with stress and depression, the trust dismissed her on grounds of ill-health capability – but the tribunal found the real reason was redundancy.
What the trust did wrong
The trust failed to consult properly, did not consider suitable alternative vacancies, and ignored the claimant's clear refusal of the Band 4 role. It also ticked a box on an occupational health form asking about ill-health retirement, which the tribunal found amounted to harassment related to age. The trust dismissed the claimant while she was on long-term sick leave for a disability, without making reasonable adjustments or considering whether the dismissal was proportionate.
Why the result matters
This case is a reminder that employers cannot disguise a redundancy as a capability dismissal. It also highlights the importance of following proper procedures, especially when dealing with long-serving employees and those with disabilities. The substantial compensation reflects the seriousness of the failures and the impact on the claimant's career and health.
For employees in similar situations, this case shows that tribunals will look beyond the stated reason for dismissal and examine the real motive. It also demonstrates that unauthorised deductions from wages – such as imposing a pay cut without consent – can be challenged successfully.
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