Can You Be Made Redundant While on Sick Leave?
Facing redundancy can be a challenging and uncertain time for any employee. However, if you are on sick leave, the situation can feel even more daunting. You may worry about whether your employer can legally make you redundant while you are away from work due to illness.
In the UK, redundancy is a legal reason for dismissal, and being on sick leave does not automatically protect an employee from being made redundant. However, employers must ensure that the process is fair, transparent, and non-discriminatory.
If redundancy is based on an employee’s illness rather than legitimate business reasons, it could be considered unfair dismissal or disability discrimination.
This article explores UK redundancy laws, employee rights, employer obligations, redundancy pay, and how to challenge an unfair dismissal while on sick leave.
What Is Redundancy?
Redundancy occurs when an employer no longer requires a particular role due to business-related reasons. This can happen when a company shuts down, relocates, restructures, or reduces its workforce due to economic challenges.
Unlike dismissal due to poor performance or misconduct, redundancy is not the employee’s fault. It is a legal form of termination based on business needs. Employers must follow proper redundancy procedures to ensure the process is fair and compliant with UK employment laws.
For redundancy to be valid, it must meet certain legal requirements, such as a genuine business reason, a fair selection process, and consultation with affected employees. If these steps are not followed, an employee may have grounds to challenge the redundancy as unfair dismissal.
How Does Sick Leave Affect Redundancy?
Being on sick leave does not automatically protect an employee from redundancy, but it does require the employer to be extra cautious in ensuring fairness. An employer cannot use illness as a reason for redundancy, as this could be seen as disability discrimination under the Equality Act 2010.
If an employee is off work due to short-term or long-term illness, they must still be included in the redundancy consultation process. Employers must make reasonable efforts to inform the employee about their redundancy risk, discuss alternatives, and give them a chance to respond, even if they are unwell.
Additionally, if an employee is disabled or has a long-term health condition, the employer must make reasonable adjustments to accommodate them before proceeding with redundancy. Failing to do so could lead to legal claims of discrimination.
Can an Employer Make You Redundant While You Are on Sick Leave?
Yes, an employer can legally make an employee redundant while they are on sick leave, but they must prove that the redundancy is based on genuine business needs and not linked to the employee’s illness.
Redundancy must follow these key principles:
- A legitimate reason: The redundancy must be due to business-related factors, such as restructuring, financial difficulties, or workplace closure.
- A fair selection process: The employee must not be singled out due to their illness. Instead, the employer must use objective criteria, such as skills, experience, and job performance, to determine who is made redundant.
- A proper consultation process: The employer must discuss the redundancy with the employee, even if they are on sick leave. This can be done through written communication, phone calls, or virtual meetings.
- Consideration of alternative roles: Before confirming redundancy, the employer must check if there are other suitable roles within the company for the affected employee.
If an employer fails to follow these steps, the redundancy may be unfair and open to legal challenge.
What Are an Employer’s Responsibilities When Making Someone Redundant on Sick Leave?
In the UK, employers must strictly follow redundancy laws to protect employees from unfair dismissal. Even if an employee is on sick leave, they must be treated fairly throughout the redundancy process.
One of the most important responsibilities of an employer is proper consultation. Employers must notify the employee about their redundancy risk, explain the reasons, and allow them to respond. This is particularly important when the employee is on sick leave, as they might be unable to attend in-person meetings. Employers should offer alternative ways to communicate, such as emails, phone calls, or online meetings.
Another critical responsibility is ensuring the redundancy selection process is fair. An employer cannot use illness as a reason for redundancy. Instead, they must apply objective selection criteria, such as skills, qualifications, and job performance. If an employee is chosen for redundancy solely because they are on sick leave, this could be classed as disability discrimination.
Employers must also consider alternative employment before confirming redundancy. If a suitable alternative role exists within the organisation, it should be offered to the affected employee. Failure to do so could make the redundancy unfair.
What Are Your Rights If You Are Made Redundant While on Sick Leave?
Employees made redundant while on sick leave have several legal rights, including the right to redundancy pay, a notice period, and an appeal process.
If you have been employed for at least two years, you are entitled to statutory redundancy pay. The amount depends on your age, length of service, and weekly pay, but it is usually calculated based on your normal wage, not sick pay.
You are also entitled to a notice period, during which you will continue receiving normal pay or Statutory Sick Pay (SSP) if applicable. Your employer cannot terminate your employment immediately without providing proper notice.
If you believe your redundancy was unfair or discriminatory, you have the right to challenge it through your company’s internal appeal process. If the issue is not resolved, you can take your case to ACAS (Advisory, Conciliation and Arbitration Service) or an employment tribunal.
How Can You Challenge an Unfair Redundancy While on Sick Leave?
If you suspect that your redundancy was unfair, there are several steps you can take to challenge the decision.
First, you should request a written explanation from your employer detailing why you were selected for redundancy. This will help you determine whether the redundancy process was fair.
Next, you can file an internal appeal through your company’s grievance procedure. Many businesses have a formal appeals process that allows employees to challenge redundancy decisions.
If your employer does not resolve the issue, you can seek ACAS Early Conciliation, a free dispute resolution service that helps employees and employers reach an agreement without going to court. If conciliation fails, you may file a claim with an employment tribunal, where a legal panel will review your case and determine if the redundancy was fair.
Will You Receive Redundancy Pay and Notice While on Sick Leave?
Yes, employees on sick leave are still entitled to redundancy pay and notice pay. The redundancy pay calculation is based on your regular salary, not on sick pay.
The notice period will also apply, meaning you will either work through the notice or receive payment in lieu of notice. If you are still entitled to Statutory Sick Pay (SSP), you may continue receiving it during your notice period.
Conclusion
Being made redundant while on sick leave is legally possible, but employers must follow strict guidelines to ensure fairness. Employees have rights, including redundancy pay, consultation, and the ability to challenge unfair dismissal.
If you believe your redundancy was unjust, you can take action through ACAS or an employment tribunal. Understanding your rights is the first step to protecting yourself from unfair dismissal.
Frequently Asked Questions (FAQs)
Can my employer make me redundant while I am on sick leave?
Yes, but the redundancy must be genuine, fair, and not based on your illness. Your employer must follow proper redundancy procedures.
Do I have to attend redundancy meetings if I am on sick leave?
Yes, your employer must consult with you. If you are too unwell to attend in person, they should offer alternatives like email, phone calls, or virtual meetings.
Can I challenge my redundancy if I think it is unfair?
Yes, you can appeal internally, seek help from ACAS, or take your case to an employment tribunal if the redundancy was discriminatory or unfair.
Will I still get my redundancy pay if I am on sick leave?
Yes, if you have worked for your employer for at least two years, you are entitled to statutory redundancy pay, which is calculated based on your normal wage, not sick pay.
What happens to my Statutory Sick Pay (SSP) if I am made redundant?
You will continue receiving SSP until your employment ends. After redundancy, you may be able to claim other benefits, such as Employment and Support Allowance (ESA).
Can I be selected for redundancy because of my sickness?
No, selecting an employee for redundancy based on illness could be disability discrimination, which is illegal under the Equality Act 2010.
What should I do if I suspect my redundancy is unfair?
Request a written explanation from your employer, file an internal appeal, seek help from ACAS, and consider making a claim at an employment tribunal.
