Thursday, November 22, 2007
Fair Dismissal for a Stressed Employee
McAdie worked for the Royal Bank of
Scotland for many years. When the bank moved her to a different branch, McAdie complained, and discussions about the move quickly became fraught, with McAdie complaining that her manager's behaviour amounted to harassment.
McAdie signed off sick with stress and subsequently brought a grievance about the transfer and her manager's behaviour. The grievance was not upheld.
McAdie remained off sick despite the bank's attempts to get her to return to work, until, after more than a year's absence, she was dismissed. Medical evidence, identified "a severe adjustment disorder secondary to alleged workplace issues including harassment", and confirmed that a return to work was very unlikely in the foreseeable future.
McAdie brought unfair dismissal proceedings against the bank and the Employment Tribunal upheld her claim.
The Employment Appeal Tribunal (EAT) and then the Court of Appeal disagreed. Both courts said that while a tribunal should not ignore the fact that an employer has contributed to an employee's ill-health, the fact that the employer has done so - however culpably - cannot prevent the employer from ever effecting a fair dismissal.
The courts suggested that in such cases it might be necessary for the employer to "go the extra mile" in finding alternative employment for the employee, or put up with a longer period of absence than might otherwise be reasonable. Although the bank's handling of the grievance was regrettable, there was no possibility of the employment continuing, and no alternative to dismissal.
Implications:
While dismissal can be fair in these circumstances, the appeal courts agreed that an employer will be expected to "go the extra mile", which is likely to involve waiting for a longer period than normal before dismissing, and making more effort to find alternative work. Employers should bear this in mind when handling cases where work-induced stress is alleged.
It is also important to remember that an employer responsible for causing an employee's stress is also at risk of claims for personal injury, discrimination, constructive dismissal, and claims under health and safety legislation.
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