Dismissed while on sick leave: fixed-term contract not renewed without consultation
A mental health practitioner with 15 years' experience was unfairly dismissed when her fixed-term contract was not renewed while she was on long-term sick leave. The tribunal awarded £33,443.28.
1 min read · Last updated 19 May 2026
Case details
Key facts
- The claimant was employed on a series of fixed-term contracts from 2 February 2015 until dismissal.
- The respondent won a tender for the Tier 0 service and the claimant's role was made redundant on transfer.
- The claimant was dismissed by letter dated 8 March 2023 while on long-term sick leave.
- The respondent did not consult with the claimant, offer alternative roles, or provide a right of appeal.
- The tribunal found the respondent's reason for dismissal was not redundancy but because the claimant was sick and to avoid her gaining permanent status.
Timeline
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Employment commenced
Claimant started work with ACE on a fixed-term contract as a Mental Health Coordinator.
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Fixed-term contract renewed
Claimant's last fixed-term contract with ACE was issued, due to expire on 31 March 2023.
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TUPE transfer to respondent
Claimant's employment transferred to Cardiff Mind Ltd under TUPE.
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New contract issued
Claimant received a fixed-term contract as Senior Primary Mental Health Worker until 31 March 2023.
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Sickness absence began
Claimant went off sick with vertigo and remained absent until dismissal.
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Claimant proposed phased return
Claimant texted Mr Padbury asking about a phased return to work.
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Fit note sent
Claimant sent a fit note certifying her unfit for work until 4 April 2023.
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Dismissal letter sent
Claimant received a letter dated 8 March 2023 dismissing her with effect from 31 March 2023.
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Grievance raised
Claimant raised a grievance about notice pay, which was rejected by the respondent.
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Remedy hearing
Tribunal awarded basic award of £329, compensatory award of £40,090.75 (capped at £33,443.28), and £500 for loss of statutory rights, with 25% ACAS uplift.
The legal issue
The tribunal had to decide whether the claimant was unfairly dismissed when her fixed-term contract was not renewed while she was on long-term sick leave, and whether the respondent had a potentially fair reason for dismissal and acted reasonably in the circumstances.
The outcome
The tribunal upheld the claimant's complaint of unfair dismissal.
Key reasons:
- The respondent's stated reason of redundancy was not genuine; the real reason was the claimant's sickness absence and a desire to prevent her from acquiring permanent status.
- The respondent failed to consult with the claimant, offer alternative employment, or provide a right of appeal.
- The dismissal was procedurally unfair and outside the range of reasonable responses.
Compensation breakdown:
- Basic award: £329.00
- Compensatory award: £40,090.75 (capped at £33,443.28)
- Loss of statutory rights: £500.00
- ACAS uplift of 25% applied for unreasonable failure to follow the ACAS Code of Practice on disciplinary and grievance procedures.
Lessons & takeaways
- Employers must not use the expiry of a fixed-term contract as a pretext to dismiss a sick employee without proper consultation and consideration of alternatives.
- Failing to offer a right of appeal in a dismissal decision is a clear procedural failing that can increase compensation.
- The ACAS Code of Practice on disciplinary and grievance procedures applies to dismissals; ignoring it can lead to a 25% uplift in compensation.
- Long-serving employees, even on fixed-term contracts, are entitled to a fair process before dismissal, especially when on sick leave.
This case highlights the risks employers face when they treat the expiry of a fixed-term contract as a simple administrative matter, particularly when the employee is on long-term sick leave. The claimant, a mental health practitioner with 15 years' experience, had worked for the respondent for over a year after a TUPE transfer. When she went off sick with vertigo, the respondent decided not to renew her contract, citing redundancy. However, the tribunal found that the real reason was her sickness and a desire to prevent her from gaining permanent status.
What went wrong
The respondent made several critical errors. First, it did not consult with the claimant about the redundancy or her future. Second, it did not consider alternative roles or a phased return to work, even though the claimant had expressed a desire to return. Third, it failed to provide a right of appeal against the dismissal. The tribunal noted that the respondent's actions were not within the range of reasonable responses for a fair dismissal.
Why this matters
This case serves as a reminder that fixed-term employees are not second-class workers. They are entitled to the same fair treatment as permanent staff, especially when they have long service. Employers must follow proper procedures, including consultation and consideration of alternatives, even when a contract is due to expire. The ACAS uplift of 25% for failing to follow the Code of Practice added over £8,000 to the award, underscoring the importance of procedural fairness.
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