What Happens If You Are Dismissed While on Sick Leave?
Being off work because of illness does not automatically protect an employee from dismissal in the UK. An employer can, in certain circumstances, end someone’s employment while they are on sick leave. However, being absent due to illness is not, by itself, enough to make every dismissal lawful or fair.
Before dismissing an employee because of long-term ill health or repeated sickness absence, an employer should normally investigate the circumstances, consider medical evidence, discuss the situation with the employee and explore whether reasonable steps could help them return to work. Acas describes dismissal because of long-term illness as something that should generally be treated as a last resort.
The situation can become particularly important where the employee’s health condition amounts to a disability under the Equality Act 2010. In those circumstances, additional legal protections and the duty to consider reasonable adjustments may apply.
Can Your Employer Dismiss You While You Are Off Sick?
Yes. UK employment law does not create an absolute ban on dismissing someone simply because they are currently signed off work.
Persistent or long-term illness can potentially provide a fair reason for dismissal where the illness means that an employee cannot perform their role. However, government guidance says employers should first look for ways to support the employee and give them reasonable time to recover.
For example, an employee may have been absent for many months with no clear indication of when they will be capable of returning. Their employer might eventually conclude that the role cannot reasonably remain vacant indefinitely.
That does not mean the employer can immediately terminate the contract.
A fair process is extremely important.
Why the Reason for Dismissal Matters
A dismissal during sick leave could happen for several reasons, including:
- capability because of long-term ill health
- misconduct unrelated to the illness
- redundancy
- another substantial business reason
An employer must identify the genuine reason for the dismissal rather than simply describing sickness absence as the reason when something else is actually happening.
If the employer dismisses an employee because their illness prevents them from performing their job, the issue would normally be considered one of capability.
What Should an Employer Do Before Dismissing You?
Before considering dismissal for long-term sickness, an employer should normally establish what the employee’s health situation actually is.
That can involve discussing the absence with the employee, reviewing medical information and considering whether occupational health advice would be useful.
Government guidance suggests employers may consider obtaining a medical report, with the employee’s permission, or arranging an occupational health assessment before deciding whether dismissal is necessary.
The employer should also consider whether the employee might reasonably return to work in the foreseeable future.
A long absence does not automatically mean that a return is impossible.
For example, an employee recovering from surgery may have been unable to work for several months but could potentially return gradually once their recovery reaches a particular stage.
Could Reasonable Adjustments Help You Return?
Where a health condition amounts to a disability, employers have a legal responsibility to consider reasonable adjustments.
These adjustments are designed to remove disadvantages that a disabled worker would otherwise experience at work.
Possible adjustments might include changing working hours, providing different equipment, altering certain duties, changing the workplace or allowing a phased return following an extended period of illness.
An employer cannot simply ignore realistic adjustments and move directly to dismissal.
However, this does not mean every adjustment requested by an employee must automatically be accepted. Whether an adjustment is reasonable will depend on factors such as the employee’s job, the organisation, practicality and the circumstances surrounding the health condition.
What Happens If Your Employer Decides You Cannot Return?
Sometimes the evidence may show that an employee is unlikely to become capable of performing their role within a reasonable period.
Even after considering changes to working arrangements, different duties or other support, the employer might conclude that continuing the employment relationship is no longer practical.
If you are dismissed while on sick leave, it is therefore important to establish the employer’s stated reason for ending your employment and whether the correct procedure was followed.
Acas says dismissal because of long-term illness may potentially be fair where the employer has considered other options, the employee cannot perform their job and their inability to work is having a significant impact on the organisation.
The facts of each case matter.
Can You Be Dismissed Because of a Disability?
An employer cannot lawfully dismiss an employee simply because that person has become disabled.
Disability is a protected characteristic under the Equality Act 2010, and protection against disability discrimination applies to dismissal as well as recruitment, promotion, pay and other areas of employment.
However, disability does not create an absolute guarantee of continued employment.
There may be situations where an employee cannot perform the essential requirements of their role even after reasonable adjustments have been explored. Government guidance recognises that dismissal may potentially be fair in those circumstances.
The key distinction is between dismissing somebody because they are disabled and reaching a properly considered capability decision after reasonable adjustments and other realistic alternatives have been examined.
What If You Are Made Redundant During Sick Leave?
Sickness absence does not prevent an employee from being included in a genuine redundancy process.
For example, if a business closes a department and the employee’s position genuinely disappears, the fact that the employee happens to be on sick leave does not necessarily prevent redundancy.
However, the selection process must still be fair.
An employee should not be selected simply because they are disabled, and employers need to be particularly careful where absence criteria disadvantage someone because of a disability. Government guidance makes clear that employees cannot be chosen for redundancy simply because they are disabled.
A genuine redundancy situation should therefore be distinguished from an employer attempting to use redundancy as a convenient way of dealing with an employee’s health problems.
What Happens to Your Notice Pay and Holiday?
Being dismissed normally brings an employment contract to an end on a specific termination date.
Depending on the circumstances and the employee’s contract, there may be entitlement to notice or payment instead of notice.
Employees can also continue building up statutory holiday entitlement while they are off sick. Acas confirms that holiday can continue to accrue even when sick pay has ended.
Any outstanding wages, holiday entitlement and other contractual payments should therefore be checked carefully when employment ends.
Running out of sick pay does not itself terminate the employment contract. An employee can remain employed even when they are no longer receiving sick pay.
When Could a Dismissal Be Unfair?
The question is not simply whether an employer had a potential reason for dismissal.
How the employer reached its decision is also important.
A dismissal may potentially be challenged where an employer did not have a valid reason, failed to investigate properly or acted unreasonably during the dismissal procedure.
For example, concerns might arise where an employer dismisses an employee without discussing their expected recovery, ignores medical evidence showing an imminent return to work or refuses to consider realistic adjustments.
Employees should therefore keep records of important communications, medical evidence, occupational health recommendations and any adjustments they have requested.
Can You Claim Unfair Dismissal?
Eligibility depends on the circumstances and the type of claim.
As of September 2026, employees in Great Britain normally need two years’ qualifying service to bring an ordinary unfair dismissal claim. The rules are scheduled to change from 1 January 2027, when most employees will qualify after six months’ service. Different rules continue to apply in Northern Ireland.
Some dismissal claims do not depend on the ordinary qualifying period, particularly where an automatically unfair reason is involved.
Discrimination claims are also separate from ordinary unfair dismissal claims, so short service does not necessarily mean an employee has no legal protection.
Employment tribunal deadlines can also be short. GOV.UK states that unfair dismissal claims are normally subject to a three-month time limit, so employees considering action should obtain advice quickly rather than waiting until the dispute has been unresolved for months.
What Should You Do After Being Dismissed?
Start by obtaining the employer’s decision and reasoning in writing.
Review your employment contract, sickness policy, dismissal procedure and any occupational health reports connected with your absence. Compare what actually happened with the process the employer was supposed to follow.
You should also check whether reasonable adjustments were considered if your condition could potentially meet the legal definition of a disability.
If there is an internal appeal process, consider whether you have grounds to challenge the dismissal through it.
Employees who believe their dismissal was unfair or discriminatory can also seek guidance from Acas, a trade union representative, Citizens Advice or an employment law professional.
Final Thoughts
Being on sick leave does not mean an employer can never dismiss you, but neither does sickness give an employer an automatic right to terminate your employment.
In long-term sickness cases, dismissal should generally be the final option after the employer has investigated the employee’s condition, considered the likelihood of a return, discussed potential support and examined reasonable adjustments where appropriate.
A dismissal may ultimately be lawful where an employee genuinely cannot perform their role and there are no reasonable alternatives. But where an employer rushes the process, ignores medical evidence, fails to consider reasonable adjustments or treats an employee unfavourably because of disability, the legal position can be very different.
For employees, understanding the employer’s real reason for dismissal and the process used to reach that decision is often the first step in deciding whether the outcome should be accepted or challenged.
