It is possible to dismiss an employee with mental health issues on the grounds of medical capability if their mental health-related absences become long-term, but this must be handled carefully and as a last resort.
When dealing with mental health related absences, employers must remember that an individual who has been absent from work by reason of illness may be protected by disability discrimination law under the Equality Act 2010.
Dismissal should only be considered if the employee’s mental health condition makes it impossible for them to perform their job effectively, even with reasonable adjustments in place. Additionally, the employer must follow a fair procedure, including consulting with the employee, exploring alternatives to dismissal, and avoiding discrimination under the Equality Act 2010. Failure to do so could result in claims for unfair dismissal or discrimination.