Long Term Sick Leave
Often employers are left with the decision of whether they can dismiss an employee who has been on long-term sick leave. This can only be done after the employee has exhausted their entitlement to sick pay through the payroll system and is showing no sign that they will be fit enough to return to work.
An employer is perfectly within their rights to do this, provided that they follow the correct procedure. There must be no issue of discrimination.
Entitlement To Notice
Many employers think that, if an employee has finished their entitlement to sick pay, they have no entitlement to be paid for their notice period if they are dismissed on the grounds of ill health. This is not correct.
Every employee is entitled to receive statutory minimum notice which should be calculated at one week for each completed year of service.
An employee may have an enhanced notice period under their employment contract. This can increase the amount due.
A contracted notice period may be cancelled if the employee has worked for a longer time with a company and his statutory notice period is greater than the contracted notice period.
There are other provisions in The Employment Rights Act of 1996 regarding contractual notice periods and statutory requirements. Employers should make sure that their contracts of employment are current with existing legislation.
Do you need help calculating your sick leave payments?
We have over 20 years experience in running payroll for small and medium sized businesses in the UK. We employe 7 full time payroll specialists so if you need help with your business payroll or calculating your sick leave obligations give us a call on 01242 573 321 or use our contact page to get in touch.
A free consultation is provided to all new clients so that we can gain a full understanding out your business and how we can provide you with the service you need.
For more information about sick leave please consult the HMRC webpage.
