It is possible to lawfully dismiss an employee on long-term sick leave. However employers must have a fair reason for dismissal, act reasonably, and follow a fair procedure.

If an employee is absent from work on long-term sick leave or has a high number of absences due to recurring health issues, dismissal may be possible even if they are genuinely unfit for work. This must be treated as a capability issue rather than as misconduct, and dismissal should only be considered as a last resort. 

An employee can be fairly dismissed on grounds of capability if they have a persistent or long-term health condition that prevents them from performing their job. Additionally, if repeated absences are harming the business, dismissal for “some other substantial reason” may also be appropriate. However, if the employee’s condition qualifies as a disability, the employer is legally obligated to consider making ‘reasonable adjustments’ to help them continue in their role.

Reasonable adjustments could include measures such as a phased return to work, modified duties, altered hours, or workplace adaptations. Employers should explore all feasible options, taking into account any requests from the employee, the resources available, and whether adjustments would effectively reduce any disadvantage caused by the employee’s condition.