This guide is maintained as a current resource for July 2026 and covers only the laws of England and Wales. Information is for general guidance, not legal advice. Consult a qualified solicitor for advice specific to your situation.
Comprehensive guide to wrongful termination due to health or disability in England and Wales. Explains disability discrimination, unfair dismissal capability, reasonable adjustments, tribunal claims, remedies, time limits and practical guidance for employees and employers.
Termination of employment because of health problems or disability raises complex legal issues in England and Wales. While employers may lawfully end a contract for reasons such as lack of capability, dismissing someone because of their health condition or disability may amount to unlawful discrimination. This article explains the legal protections that apply when health or disability intersects with dismissal, the distinction between wrongful and unfair dismissal, the role of the Equality Act 2010, tribunal procedures, time limits, potential remedies, and practical actions employees and employers can consider.
Health, Disability and Employment Rights
Employees and workers in England and Wales enjoy statutory protections against unfair treatment because of health issues or disability. Dismissal that is motivated by, or results from, a health condition can give rise to claims under employment law, including unfair dismissal, disability discrimination, and failure to make reasonable adjustments. Employers must treat health‑related performance and absence issues sensitively and in accordance with legal obligations; deviations can lead to claims in the Employment Tribunal with potential compensation awards.
Statutory Framework
Equality Act 2010 and Disability
Under the Equality Act 2010, “disability” is a protected characteristic. A person is disabled if they have a physical or mental impairment that has a substantial and long‑term adverse effect on their ability to carry out normal day‑to‑day activities. Legal protection applies from the first day of employment and includes dismissal. It is unlawful for an employer to treat a disabled employee less favourably because of something arising in consequence of their disability unless the employer can objectively justify the treatment as a proportionate means to achieve a legitimate aim. Reasonable adjustments are required to avoid substantial disadvantage compared with non‑disabled colleagues. Failure to make adjustments can itself be a separate claim.
This protection extends to all aspects of employment, including dismissal or redundancy selection. Employers should not dismiss someone simply because of their disability without careful consideration of equality duties.
Wrongful Dismissal vs Employment Tribunal Claims
Wrongful Dismissal
A wrongful dismissal claim arises from a breach of contract. For example, if an employer ends a contract without giving the required notice period set out in the contract or statutory minimum, the dismissed employee may claim wrongful dismissal for breach of contract. This claim focuses on contractual terms and does not directly address discriminatory motives or statutory rights.
Tribunal Claims: Unfair and Discriminatory Dismissal
Separate from wrongful dismissal, unfair dismissal and discrimination claims are brought before an Employment Tribunal. For unfair dismissal based on capability (including health), a claimant generally needs two years' continuous service (subject to reforms under the Employment Rights Bill); however, discrimination claims under the Equality Act do not require any qualifying period. This means employees dismissed due to disability‑related reasons can pursue discrimination claims from day one.
When Is Dismissal Because of Health Unlawful?
Health‑Related Capability Dismissals
Employers can lawfully dismiss an employee because they can no longer perform their duties due to health (sometimes referred to as dismissal for capability or ill‑health). However, this must be handled reasonably. Tribunals assess whether the employer:
- Obtained and considered adequate medical evidence (for example, occupational health reports).
- Consulted the employee and gave them an opportunity to respond.
- Considered alternatives to dismissal, such as reasonable adjustments or redeployment.
- Followed a fair process and acted within the range of reasonable responses.
Failure in these areas may render the dismissal unfair.
Disability Discrimination and Reasonable Adjustments
If an employee's health condition amounts to a disability under the Equality Act, employers must go further. Dismissing someone without first considering reasonable adjustments - such as modifying duties, changing work patterns or adjusting performance expectations - can amount to failure to make reasonable adjustments and discrimination arising from disability. In some tribunal cases, mere comments or conduct reflecting unfavourable attitudes toward disability have supported discrimination findings.
Case Law Insight: Employment tribunals in recent times have upheld disability discrimination claims where employers failed to adjust or accommodate impairments, emphasising that treatment must not be “unfavourable” without objective justification.
Long‑Term Sickness and Dismissal
When an employee is absent due to long‑term sickness, employers must be especially cautious. Guidance from authoritative sources confirms that prolonged absence can legitimately lead to dismissal, but only if:
- The employer treats the reasons fairly and consistently.
- Absence management policies are followed.
- Consideration is given to whether the sickness qualifies as a disability under the Equality Act.
- Reasonable adjustments are considered before making a dismissal decision.
If sickness absence results from a disability, dismissal can give rise to disability discrimination claims if the employer fails to justify the treatment objectively.
Employment Tribunal Procedures and Time Limits
Claims for unfair dismissal, disability discrimination and related matters generally must be presented within three months less one day of the effective date of termination. Early Conciliation with Acas must be initiated before submitting a tribunal claim. There is no qualifying period for disability discrimination and reasonable adjustment claims, meaning claims can be brought regardless of length of employment.
Tribunals will require claimants to specify the legal grounds for the claim (e.g. discrimination under the Equality Act, unfair dismissal for capability) and provide evidence to support their allegations.
Remedies and Compensation
Successful tribunal claims can result in a range of remedies, including:
- Compensatory awards for financial loss, such as lost earnings and benefits.
- Awards for injury to feelings where discrimination is demonstrated.
- Recommendations for reinstatement or re‑engagement in limited circumstances.
Compensation for unfair dismissal is subject to statutory caps, whereas awards for disability discrimination are uncapped and can reflect the seriousness of the breach and impact on the individual. The potential for significant awards in discrimination cases highlights the importance of compliance with equality duties.
Recent tribunal outcomes underscore this point: one claimant terminated after a cardiac arrest received a substantial award of nearly £200,000 for unfair dismissal and disability discrimination, after the employer's process and treatment were criticised.
Practical Guidance for Employees
- Understand Your Rights: Determine whether your health condition qualifies as a disability under the Equality Act.
- Document Evidence: Keep medical records, communications about health and adjustments, and any correspondence relating to dismissal.
- Seek Early Advice: Consult organisations such as Acas or a solicitor to clarify potential claims before limitation periods expire.
- Consider Reasonable Adjustments: Communicate with your employer about adjustments that could help you remain in work.
Practical Guidance for Employers
- Follow Fair Procedures: Conduct thorough investigations, consult employees, and obtain medical evidence before considering dismissal related to health.
- Assess Reasonable Adjustments: Analyse whether adjustments could enable continued employment and document the decision‑making process.
- Objective Justification: Be prepared to demonstrate that dismissal was a proportionate means of achieving a legitimate aim, especially when disability is involved.
- Train Managers: Ensure those involved in performance and absence management understand equality law duties and avoidance of discriminatory conduct.
Common Questions About Wrongful Termination Due to Health or Disability
Can an employee with less than two years' service bring a claim?
Yes. Disability discrimination and failure to make reasonable adjustments claims can be brought regardless of length of service; unfair dismissal capability claims generally require qualifying service.
Is long‑term sickness treated the same as disability?
Not automatically. A health condition must meet the statutory definition of disability to attract full protection; however, employers should still manage long‑term sickness fairly to avoid claims.
What is “reasonable adjustment”?
It is a legal duty to modify workplace practices or environments to reduce disadvantage caused by disability, unless doing so imposes a disproportionate burden on the employer.
Key Takeaways
Wrongful termination due to health or disability in England and Wales involves overlapping legal protections under employment contract principles and equality law. Employers may dismiss for legitimate capability reasons, including health limitations, but must follow fair procedures, consider medical evidence and consult employees. Where a health condition amounts to a disability, dismissal without reasonable adjustments or where unfavourable treatment arises as a consequence of disability can constitute unlawful discrimination. Employees should document relevant evidence, initiate Acas Early Conciliation promptly, and understand time limits for tribunal claims. Employers should apply thoughtful, lawful processes and ensure compliance with statutory duties to manage health‑related dismissals effectively and fairly.
