Long-serving loans officer dismissed after 17 months' sickness absence: fair dismissal upheld
A loans and investment officer with 25 years' service was fairly dismissed on capability grounds after 17 months off work with stress and anxiety. The tribunal rejected her claims of unfair dismissal and disability discrimination.
1 min read · Last updated 18 May 2026
Case details
- #long-term-sickness
- #stress-and-anxiety
- #occupational-health
- #stress-risk-assessment
- #grievance-delay
- #redeployment-not-offered
Key facts
- The claimant was absent from work due to stress and anxiety from 2 September 2019 until her dismissal on 8 February 2021.
- The respondent held 14 welfare meetings and 18 welfare calls during the claimant's absence.
- The claimant refused a phased return to work and could not give any indication of when she might be able to return.
- The respondent dismissed the claimant on grounds of capability (long-term absence).
- The claimant's grievance about workload and additional duties was not upheld, and the appeal was dismissed.
- The tribunal found that the respondent had adequately consulted the claimant and had up-to-date medical evidence.
Timeline
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Employment commenced
The claimant started working for the respondent as a loans and investment officer.
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Sickness absence began
The claimant visited her GP and was signed off work with anxiety, later described as stress and anxiety.
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Stress risk assessment sent
The respondent sent the claimant a standard HSE stress risk assessment to complete.
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First Occupational Health appointment
Occupational Health confirmed work-related stress and recommended dialogue between employee and management.
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Stress risk assessment meeting
A meeting to discuss the stress risk assessment did not go well; the claimant wanted to discuss past issues rather than future plans.
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Grievance raised
The claimant raised a formal grievance about workload, the stress risk assessment, and a job advertisement for her cover.
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Second Occupational Health appointment
Occupational Health recommended a period of recovery after resolution of stress and suggested the claimant may be disabled under the Equality Act.
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Grievance hearing
The grievance hearing took place; the grievance was not upheld.
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Welfare meeting
The respondent discussed a phased return to work, but the claimant refused, stating she was not well enough.
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Dismissal meeting
The claimant was dismissed on grounds of capability (long-term absence). The dismissing officer offered an adjournment, which the claimant refused.
The legal issue
The tribunal had to decide whether the council's decision to dismiss the employee on capability grounds (long-term sickness) was fair, and whether the dismissal or failure to tailor a stress risk assessment amounted to disability discrimination.
The outcome
The tribunal dismissed all claims. It held that the dismissal for capability was fair because the council had consulted extensively (14 welfare meetings, 18 welfare calls), had recent medical advice, and the employee could not indicate when she might return. The discrimination claims failed because the dismissal was a proportionate means of achieving the legitimate aim of having a reliable workforce, and the stress risk assessment was adequately tailored. No compensation was awarded.
Lessons & takeaways
- Employers should conduct regular welfare meetings and obtain up-to-date medical evidence before dismissing on capability grounds.
- Employees who refuse a phased return and cannot give a return date make it harder to argue that dismissal was unreasonable.
- Long service alone does not make a dismissal unfair if the employer has followed a proper process and the employee is unable to return.
- Disability discrimination claims based on dismissal are likely to fail if the employer can show a legitimate aim and proportionate means.
A case of extensive consultation
This case shows that even employees with long service can be fairly dismissed on capability grounds if the employer has done everything reasonable to support a return to work. The employee, a loans and investment officer with 25 years' service, had been off work with stress and anxiety since September 2019. Over the following 17 months, the council held 14 welfare meetings and 18 welfare calls, sent a stress risk assessment, and obtained two occupational health reports. Despite this, the employee refused a phased return and could not say when she might be able to come back.
What the employer did right
The tribunal noted that the council had up-to-date medical evidence at the time of dismissal and had offered an adjournment of the dismissal meeting, which the employee declined. The dismissing officer considered alternatives such as redeployment but concluded that no suitable vacancies existed. The tribunal found that the council's decision fell within the range of reasonable responses, given the prolonged absence and the employee's unwillingness to engage with a return plan.
Why the discrimination claims failed
The employee also argued that her dismissal and the failure to tailor a stress risk assessment amounted to disability discrimination. The tribunal accepted that she was disabled from September 2019, but found that the dismissal was a proportionate means of achieving the legitimate aim of ensuring the council had a reliable workforce to discharge public functions. The stress risk assessment was adequately tailored, and any shortcomings were not related to her disability. The claims were dismissed in full.
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