It is possible to make an employee on long-term sick leave redundant, provided the redundancy is genuine and not connected to their absence. Making someone redundant because of their ill health could give rise to claims of unfair dismissal.
When considering redundancy for an employee on long-term sick leave, employers must demonstrate that:
- There is a genuine redundancy situation: There must be a legitimate reason for redundancy based on the needs of the business, such as a reduction in work, or a necessary restructure that means the employee’s role is no longer required.
- There is a fair selection process: The employee should be included in the selection pool with others in similar roles, and objective criteria should be applied. Using attendance as a selection criterion could be discriminatory, especially if the employee’s illness is a disability under the Equality Act 2010.
- Consultation has taken place: Employers must consult with employees on long-term sick leave as they would with other affected employees. If the employee whose job is at risk is too ill to attend consultation meetings, consider making adjustments such as offering to visit them at home or conducting meetings via a video or phone call. If they are completely unable to engage with the process, you might need to consider whether it is possible to wait for the employee’s health to improve. If the redundancy process cannot be delayed, you should make sure you can demonstrate why the needs of the business mean that the redundancy must go ahead. The key is always to be fair and reasonable in your handling of the situation.
- Alternatives have been considered: Employers must consider any reasonable adjustments or alternative roles for the employee, especially if they have a disability. Redundancy should be a last resort after considering all viable options.