Handling a dismissal requires more than formal correctness – it demands both professional precision and human understanding. In this post, we guide you through the legal and practical considerations you need to make – especially when illness or changing working conditions come into play. We also show how a severance agreement can be a dignified and legally sound alternative. Whether you're a payroll officer or a managing director, you’ll receive clear and professional guidance to help you navigate complex HR situations – ensuring the best possible outcome for both the company and the employee.
What is a dismissal?
A dismissal marks the end of an employment relationship between employer and employee. For it to be valid, the dismissal must be based on a fair and justifiable reason.
Reason for dismissal
It is crucial to have a valid reason for dismissal. As a general rule, any employee can be dismissed as long as the reason is fair and well-founded.
Illness as a reason for dismissal
When dismissing an employee due to illness, it is important to consider all relevant factors before making a decision. For instance, you can use this checklist:
- Duration of illness: How long has the illness lasted to date?
- Cause of illness: Note that you must not enquire about the cause unless it is relevant and legal to do so.
- Prospect of returning to work: Assess if and when the employee can return to normal duties – e.g. via a fit note.
- Pattern of illness: Consider whether the illness is recurring or intermittent.
- Operational impact: Does the employee’s absence significantly affect operations or increase colleagues’ workload?
- Nature of the role: Is it possible to find a temporary replacement?
- Work-related illness: Consider whether the illness could be work-related.
- Employee seniority: As a rule of thumb, more caution should be exercised when dismissing long-serving or older employees.
A dismissal may still be justified despite illness – if the absence represents a significant and real burden, and if a comprehensive assessment has been carried out, taking into account factors such as duration, likelihood of return, and seniority.
In cases of illness-related dismissal, extra caution is advised, especially where the illness may fall under disability legislation – which can afford the employee additional protection against dismissal.
What is a severance agreement
An alternative to dismissal may be a severance agreement, where the employer and employee mutually agree to end the working relationship. However, it is important to note that an employee cannot be forced to accept a severance agreement, and there is usually an expectation of compensation – for example, an additional month’s salary. The agreement must be clearly and thoroughly drafted to ensure it is valid.
Need help?
Are you facing an employee dismissal or other legal HR challenges? We offer expert advice to help you as an employer manage difficult situations while complying with current laws and regulations.