Terminating an Employee with Mental Health Issues UK

by | Blog

Mental health awareness is growing, but challenges still arise when addressing it in the workplace. Employers have a duty to support employees struggling with mental health issues, but what happens if the situation becomes untenable? When it comes to terminating an employee with mental health issues in the UK, understanding the legal landscape is crucial to ensure compliance and fairness.

This blog explores the legal considerations, employer responsibilities, and best practices for handling such sensitive situations.

Understanding Mental Health in the Workplace

In the UK, mental health issues can range from short-term stress to long-term conditions like depression, anxiety, or bipolar disorder. Many of these conditions are classified as disabilities under the Equality Act 2010, meaning employers have specific legal obligations to consider before terminating employment.

All employees have the right to a workplace where risks to their health, safety, and wellbeing, including mental and emotional health, are effectively managed. If an employee’s mental health issues have been caused or worsened by work-related stress, employers must take proactive steps to ensure a safe and supportive working environment.

Legal Protections for Employees with Mental Health Issues

When dealing with employees experiencing mental health problems, employers must follow UK employment law to avoid claims of unfair dismissal or discrimination. This is particularly important when terminating an employee with mental health issues in the UK. Key points to bear in mind include:

  1. The Equality Act 2010
    Mental health conditions that have a substantial and long-term adverse effect on an employee’s ability to perform daily activities are classified as disabilities. Dismissing an employee without reasonable adjustments or consideration of their condition could lead to claims of disability discrimination.
  2. Unfair Dismissal
    Employees with two or more years of continuous service have the right not to be unfairly dismissed. Terminating an employee with mental health issues without a valid reason or failing to follow a fair process may result in a claim for unfair dismissal. If an employee brings an employment tribunal claim, your best defence is demonstrating that you have acted reasonably, taking into account the size and resources of your organisation. Your process should be thorough and structured, allowing sufficient time for both parties to understand the situation, implement necessary measures, and assess whether improvements are achieved.
  3. Duty to Make Reasonable Adjustments
    Employers are legally required to make reasonable adjustments to help employees with disabilities, including those caused by mental health conditions, perform their job. This is a critical consideration when terminating an employee with mental health issues in the UK, as failing to implement adjustments such as flexible working hours, a reduced workload, or additional support could lead to legal claims.

In addition to these legal risks, mishandling the process can harm employee morale, damage the employer’s reputation, and result in poor workplace relations. Employers must ensure that termination decisions are well-documented, supported by evidence, and compliant with all relevant legal obligations to mitigate these risks effectively. Seeking legal or HR advice early in the process is essential to avoid these potential pitfalls. Feel free to get in touch with our HR Experts who are more than happy to answer all your questions.

Can You Dismiss an Employee with Mental Health Issues?

While it is possible terminating an employee with mental health issues UK, this should always be a last resort. Employers must demonstrate that they have taken all reasonable steps to support the employee before making this decision. Grounds for dismissal could include:

  • Capability: If an employee’s mental health prevents them from performing their job despite reasonable adjustments being made.
  • Conduct: If the employee’s behaviour, linked to their mental health condition, breaches workplace policies in a significant way.
  • Redundancy: If their role is genuinely redundant and the decision is unrelated to their mental health.
  • Some Other Substantial Reason (SOSR): A broad category that might include scenarios where continued employment is no longer feasible.

Steps to Take Before Terminating an Employee with Mental Health Issues

To ensure compliance with employment law and to handle the process of terminating an employee with mental health issues in the UK fairly, follow these steps first:

  1. Open a Dialogue
    Start by having an honest and supportive conversation with the employee. Explore how their mental health is affecting their work and what adjustments might help.
  2. Seek Medical Advice
    Obtain advice from occupational health professionals or a GP with the employee’s consent. This can help assess the condition and recommend potential adjustments.
  3. Make Reasonable Adjustments
    Implement all reasonable adjustments. This can include providing more equipment, adjusting duties, and tailoring the sickness policy to accommodate more sick days.  Document your efforts and monitor the situation over time.
  4. Conduct a Fair Process
    If termination becomes unavoidable, ensure a fair and transparent process. This includes:

    • Providing clear reasons for dismissal
    • Allowing the employee to respond to concerns
    • Following the ACAS Code of Practice for Disciplinary and Grievance Procedures
  5. Consider Alternatives to Dismissal
    It’s important to explore all alternatives before terminating an employee with mental health issues in the UK. You can look at options such as redeployment to a different role, reduced hours, or extended leave before making the final decision.

Risks of Mismanaging the Process

Failing to handle the termination process correctly could expose employers to costly legal claims, including:

  • Disability discrimination
  • Unfair dismissal
  • Breach of contract

These claims can damage your organisation’s reputation and result in financial penalties.

Best Practices for Employers

To minimise the risk of legal claims and foster a supportive workplace, adopt the following best practices:

  • Invest in Mental Health Training
    Equip managers with the skills to identify and support employees struggling with mental health issues. We provide a wide range of businesses with management training including mental health training. You can find out more about this service on our website.
  • Develop a Mental Health Policy
    Create a policy outlining your organisation’s approach to supporting employees with mental health challenges.
  • Foster a Supportive Culture
    Encourage open conversations about mental health to reduce stigma and promote early intervention.

Final Thoughts

Terminating an employee with mental health issues in the UK is a delicate and complex process. Employers must prioritise support, exhaust all reasonable adjustments, and adhere to legal requirements to avoid claims of discrimination or unfair dismissal. By fostering a culture of understanding and fairness, you can protect both your employees and your business.

If you are facing challenges with terminating an employee with mental health issues UK, seek professional advice to ensure you handle the situation appropriately.

By understanding your legal obligations and adopting a compassionate approach, you can navigate these situations with confidence.

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