Sickness and absence

Dismissal on grounds of ill-health capability letter

Ends the employment because a return to work is not foreseeable, after consultation, medical advice and consideration of alternatives.

The capability meetings have been held, the medical advice says a return within a reasonable time is unlikely, adjustments and alternatives have been genuinely explored, and the business cannot reasonably keep the role open longer. This letter records that reasoning and gives notice.

Before it goes

  • The meeting invitation said dismissal was a possible outcome, and the meeting was held (or the employee declined to attend after a reasonable rearrangement).
  • The medical evidence is recent and you have followed it, or can say why not.
  • You have checked whether the Equality Act applies and, if so, that dismissal is a proportionate means of achieving a legitimate aim, having made the adjustments that were reasonable.

The letter

[COMPANY NAME] [COMPANY ADDRESS] [DATE] [EMPLOYEE NAME] [EMPLOYEE ADDRESS] Dear [EMPLOYEE FIRST NAME], Outcome of capability meeting: termination of employment I am writing to confirm the outcome of our meeting on [MEETING DATE], at which we discussed your absence since [FIRST DATE], the occupational health report dated [REPORT DATE], and the options for the future. You were accompanied by [COMPANION NAME / You chose not to be accompanied]. At the meeting you told me that [THEIR VIEW, e.g. you hoped to be able to return in some capacity by the autumn but could not be certain]. The medical advice is that [SUMMARY, e.g. a return to your role is not foreseeable within the next six months, and that even a return to lighter duties is unlikely within three]. We discussed adjustments to your role, including [ADJUSTMENTS CONSIDERED AND WHY NOT WORKABLE]. We discussed alternative roles, including [ROLES CONSIDERED AND WHY NOT SUITABLE OR NOT AVAILABLE]. We discussed a further period of absence, and I have considered whether the company can reasonably keep your role open longer. [WHY NOT, e.g. Your role has been covered by agency labour at a cost of … since [DATE], and the team of [NUMBER] cannot absorb the work indefinitely.] I have concluded, with genuine regret, that there is no reasonable prospect of your returning to work within a period the business can sustain, and that your employment should end on the grounds of capability due to ill health. Your employment will end on [TERMINATION DATE]. Your notice period is [NOTICE], and [you will be paid in lieu of notice / your notice will run from [DATE] to [DATE]]. Your final pay will include pay to your last day, pay in lieu of notice where applicable, and payment for [NUMBER] days of accrued but untaken holiday. Your P45 will follow. [Information about any pension or benefit options is enclosed / will be sent by [NAME].] You have the right to appeal against this decision. If you wish to appeal, write to [APPEAL MANAGER NAME] at [ADDRESS / EMAIL] within five working days of receiving this letter. If your health improves and a return becomes possible, I would encourage you to say so in an appeal. I am sorry that we have reached this point. Thank you for your [NUMBER] years with the company, and I wish you well with your recovery. Yours sincerely, [MANAGER NAME] [JOB TITLE] [COMPANY NAME]

Filling it in

The reasoning paragraphs
Medical advice, adjustments, alternatives, how long you can wait. All four, with specifics. This is the letter a tribunal reads first.
Notice
Full pay for the notice period, not SSP, where notice is at or near the statutory minimum. Take advice on the calculation if the contract gives much longer notice.

What the law says

  • Employment Rights Act 1996 s.98(2)(a) and s.98(4).
  • Equality Act 2010 ss.6, 15 and 20: a long-term condition may be a disability; treating someone unfavourably because of something arising from it must be justified, and reasonable adjustments must be considered.
  • Employment Rights Act 1996 s.86: notice or pay in lieu applies.
  • Acas Code of Practice: not strictly applicable to genuine ill-health dismissals, but an appeal should still be offered.
Guidance, not legal advice. Employment law moves; check the current position before relying on any of it, and take advice on anything that could end someone's employment.

What turns this letter into a claim

  • Do not dismiss on the day the sick pay runs out because the sick pay has run out.
  • Do not rely on medical advice more than a couple of months old for a condition that changes.
  • Do not forget the appeal. If their health has improved since the meeting, the appeal is where that gets heard.

Questions people ask

Is it a redundancy?

No. Redundancy is about the job disappearing; this is about the person being unable to do a job that still exists. No statutory redundancy pay is due; notice and holiday are.

What if they produce a fit note saying they can return next month, after the decision?

That is what the appeal is for. Hear it, get updated medical advice if needed, and reconsider genuinely. A reinstatement after a successful appeal is far cheaper than a claim.

The letter, with the names already in

Employ AI drafts letters like this one from the employee's record, so the dates, service and pay are already right, and the disciplinary module writes the invitation and outcome letters from the case itself. All 44 letter families, 49 UK policies, GPS clock-in, rotas, leave and timesheets: £2.50 a month plus £1 per employee. 14 days free, no card.

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