Medical Redundancy in the UK: What Employees Need to Know
Health problems can make working difficult, particularly when an illness or disability affects an employee over a long period. In some situations, an employee may hear terms such as medical redundancy, medical dismissal or ill-health dismissal and understandably wonder whether their employer can end their employment because of their health.
In the UK, however, medical redundancy is not usually a separate legal category of redundancy. Genuine redundancy generally concerns the employer’s reduced need for a particular role or type of work, while dismissal connected to an employee’s health or ability to perform their job is normally considered through a capability process.
Understanding this distinction is important because different employment rights and procedures can apply.
What Does Medical Redundancy Mean in the UK?
The phrase medical redundancy is sometimes used informally when an employee loses their job while experiencing long-term illness, disability or repeated sickness absence.
Legally, redundancy normally occurs because the employer no longer requires the employee’s role. This could happen because a workplace closes, a business restructures, technology changes how work is performed or fewer employees are required to carry out particular work.
An employee’s medical condition does not itself make their role redundant.
If the position continues to exist but the employee can no longer perform it because of their health, the issue may instead involve capability. An employer considering dismissal on capability grounds should normally investigate the situation carefully and consider whether reasonable adjustments or other measures could allow the employee to continue working.
Redundancy vs Ill-Health Capability
The difference can be summarised as follows:
| Situation | Main Issue | Typical Process |
|---|---|---|
| Genuine redundancy | The role is no longer required | Redundancy process |
| Long-term illness | Employee may be unable to perform the role | Capability process |
| Disability affecting work | Employee faces workplace disadvantages | Reasonable adjustments may be required |
| Employee is sick during restructuring | Role may genuinely be at risk | Normal fair redundancy process still applies |
| Permanent inability to perform duties | Medical capability is in question | Capability review and possible dismissal |
The label an employer uses is less important than the actual reason for ending the employment.
Can You Be Made Redundant Because of a Medical Condition?
An employer cannot fairly make a role redundant simply because an employee has developed a medical condition.
A genuine redundancy concerns the role or the employer’s requirement for work, rather than the health of the individual occupying the position. GOV.UK explains that redundancy happens when an employer needs to reduce its workforce, and employees must be selected fairly. Disability cannot lawfully be used as the reason for selecting someone for redundancy.
However, having a medical condition does not give an employee complete protection from a genuine redundancy.
For example, if a company closes an entire department containing an employee who is receiving long-term medical treatment, that employee may still be included in the redundancy process. The employer should apply a fair process and must not select the employee simply because of their health or disability.
What Happens If Your Health Condition Is a Disability?
Some long-term physical and mental health conditions can meet the legal definition of disability under the Equality Act 2010.
Where the legislation applies, employers have additional responsibilities. In particular, an employer may need to make reasonable adjustments so that a disabled employee is not placed at a substantial disadvantage at work.
Adjustments will depend on the employee’s condition, duties and workplace.
They could include changes to working hours, alterations to equipment, changes to the physical workplace or a phased return following an extended period away from work.
An employer should therefore be careful about moving directly towards dismissal without properly considering adjustments that could reasonably help the employee continue in their role.
Can You Be Made Redundant While on Sick Leave?
Being on sick leave does not automatically prevent an employee from being included in a genuine redundancy exercise. Employees concerned about redundancy while on sick leave should understand that the employer must still have a genuine business reason for the redundancy and follow a fair process.
A business may restructure while an employee is absent because of illness. The key issue is whether the redundancy is genuine and whether the employee is treated fairly throughout the process.
Employees seeking more information about medical redundancy uk situations should be aware that sickness absence alone should not be used as a reason to select someone for redundancy.
Employers should continue to communicate with employees who are off sick, explain why their role is at risk and provide a meaningful opportunity to take part in consultation.
Where an employee’s health condition or disability makes standard consultation meetings difficult, reasonable adjustments to the process may also need to be considered.
How Should a Fair Redundancy Process Work?
A redundancy decision should not normally appear without warning.
Employees at risk should be informed about what the employer is proposing and given an opportunity to take part in meaningful consultation. According to Acas, consultation should allow employees to discuss the proposed changes, ways of avoiding or reducing redundancies, selection methods and concerns about the process.
Selection Criteria Should Be Fair
Where several employees perform similar roles but only some positions are being removed, an employer may use a selection pool and objective criteria to determine which employees are at risk.
Criteria might consider relevant skills, qualifications, performance or disciplinary records.
Attendance can sometimes form part of a selection process, but employers should take particular care where absences are connected with disability, pregnancy or other legally protected circumstances.
An employee concerned about the scoring process can ask how the selection criteria were chosen, how their score was calculated and whether disability-related absence was handled appropriately.
What Is Collective Redundancy Consultation?
Additional requirements apply where an employer proposes large numbers of redundancies.
Collective consultation is generally required where an employer proposes 20 or more redundancies at one establishment within a period of 90 days.
Consultation must take place with a recognised trade union or appropriate employee representatives, depending on the circumstances.
Individual consultation should still form part of the overall process.
Employees who are away from work because of illness should not simply be forgotten because they are not physically present in the workplace.
Should an Employer Consider Alternative Employment?
Yes. Suitable alternative employment can be an important part of the redundancy process.
An employer should consider whether another appropriate position is available within the organisation. GOV.UK also provides for a four-week trial period in an alternative role in relevant redundancy circumstances, which can be extended in some cases where agreed in writing.
For an employee experiencing medical difficulties, an alternative position may sometimes be particularly relevant. Another job could involve different physical requirements, hours, responsibilities or working arrangements that are more compatible with the employee’s circumstances.
Separately, where disability is involved, consideration of another role can potentially arise as part of reasonable adjustments depending on the individual circumstances.
What Redundancy Pay Could an Employee Receive?
Statutory redundancy pay is generally available to qualifying employees who have at least two years of continuous employment.
The calculation depends on age, length of service and weekly pay.
For redundancies on or after 6 April 2026, statutory weekly pay is capped at 751 and the maximum statutory redundancy payment is 22,530. Length of service used in the statutory calculation is capped at 20 years.
Some employers offer enhanced contractual redundancy packages that are more generous than the statutory minimum, so employees should check their employment contract, staff handbook and any applicable workplace redundancy policy.
Employees may also be entitled to notice pay and outstanding holiday pay depending on their circumstances.
What If It Is an Ill-Health Capability Dismissal Instead?
Where the job still exists but the employee’s health means they may no longer be able to perform it, the employer may consider a capability process rather than redundancy.
This should generally involve gathering appropriate information about the employee’s ability to work and considering possible solutions before reaching a final decision.
Depending on the circumstances, this might include discussing the employee’s health with them, obtaining relevant medical or occupational health information with appropriate consent, considering the likely duration of the condition and assessing possible workplace adjustments.
Dismissal may ultimately be possible where an employee cannot perform their job even after reasonable adjustments have been considered. However, employers should follow a fair process and comply with applicable equality law.
What Should You Do If You Are Facing Redundancy While Ill?
Employees should keep copies of important correspondence, including at-risk letters, consultation documents, selection scores and information about alternative roles.
It can also be useful to ask the employer clearly why the position is being removed and whether the decision is based on redundancy or medical capability.
Where a health condition affects participation in consultation, the employee can explain what adjustments might help. For example, they may request a remote meeting, additional time to consider documents or another suitable communication arrangement.
If the employee believes their disability, sickness absence or another protected characteristic has improperly influenced the decision, they may want to obtain advice from Acas, their trade union, Citizens Advice or an employment-law professional.
Can You Challenge a Medical-Related Redundancy Decision?
Potentially, yes.
An employee may have grounds to challenge a decision if the redundancy was not genuine, the selection process was discriminatory or unfair, meaningful consultation did not take place, or relevant legal protections were ignored.
Many employers also provide an internal redundancy appeal process. Raising concerns internally can give the organisation an opportunity to review selection scores, procedural problems or newly available alternative employment.
Employment tribunal claims are subject to strict time limits, so employees considering legal action should seek advice promptly rather than waiting until long after their employment has ended.
Final Thoughts
Medical redundancy can be a confusing expression because redundancy and medical capability are different employment issues under UK law.
A genuine redundancy concerns whether a job is still required. An ill-health capability process concerns whether an employee can continue performing their job. An employee can still face genuine redundancy while sick or disabled, but their medical condition should not simply be used as the reason to remove them from the workforce.
Employees should pay close attention to the stated reason for dismissal, the consultation process, selection criteria, consideration of alternative employment and any reasonable adjustments that may be required.
Understanding these distinctions can make it easier to identify whether an employer is following an appropriate process and when professional employment advice may be needed.
