Occupation Health Reports – can employers rely on them when reviewing grounds for misconduct?

Employers are expected to obtain medical reports in a number of situations, often involving absence –  sometimes it’s about poor performance or some form of misconduct. In a recent case the Employer obtained a medical report to ascertain whether an employee had a disability.

In a worrying decision, the Court of Appeal has ruled that an employee may be disabled even though a report from Occupational Health stated that in their opinion, the employee was not disabled.

The case involved a council worker allegedly suffering from a stress related condition – one of the more problematic reasons for absence. The Employer obtained a couple of reports from an external Occupational Health (OH) provider which clearly stated that the employee was not covered by the (then) Disability Discrimination Act. This is now covered by the Equality Act.

So far so good…..

The man had had a number of absences from work, due to stress, often falling ill again soon after returning to work. It was accepted that his stress was work related.

He was eventually dismissed for misconduct following a period of suspension over bullying allegations, and brought various claims to Tribunal, including unfair dismissal, disability discrimination and a failure to make reasonable adjustments.

The Council argued, based on the medical reports, that the man did not have a disability; and therefore, amongst other things, they were not under a duty to make any “reasonable adjustments”.

The Employment Tribunal and The Employment Appeal Tribunal found in favour of the Employer, stating that they were entitled to rely on the content of the independent medical report – which probably reflects what most Employers would have done in the same situation.

However unfortunately for the Employer in this case (and for Employers generally I suggest), The Court of Appeal disagreed and sent the case back for rehearing in Tribunal.

The Appeal Court considered the OH report to be “threadbare”, with no reasoning provided to support its decision. The Court advised Employers to form their own opinion and not to merely follow OH advice without question.

This is a tough decision to be honest!  The Employer was essentially criticised for blindly following independent medical advice.

Guidance Note. Employers sometimes have to make a management decision based on medical information. It is not the Medical Advisors role to make the decision, only to offer advice. Management has to take responsibility for the final decision. In view of this decision, Employers should still obtain Medical advice first, but then objectively review it before making a decision – particularly if that decision is  to dismiss the employee.

It would now also be advisable to ask OH to justify their opinion, particularly when dealing with a suspected disability, which has a statutory rather than a medical definition.

Are your Managers and HR team up to speed with the latest employment law developments?

This case and other important recent decisions are featured in our Employment Law Update one day event.

With Employment Law being a rapidly evolving subject, this Workshop reviews new legislation, recent Court and Tribunal decisions and forthcoming changes in Employment Law in order to emphasise the implications for your business of these key decisions.

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For more information about this topic or on any aspect of Employment Law, feel free to get in touch:

Derek Eccleston MA FCIPD
01789 470700

What can we glean from the latest Employment Tribunal News?

Every year statistics are published on the number and nature of Employment Tribunal claims which have been raised. These latest Tribunal Statistics recently produced by the Ministry of Justice show a continuing upward trend. However the introduction of Tribunal claim fees in July this year is expected see a marked reduction in the overall numbers of claims made in the coming months – let’s wait and see!

Top Headlines

• Total complaints made were up by 3% and reached nearly 333,000 over the year to April 2013

• Unfair Dismissal claims rose in last 12 months up to 50,000

• Claims for not consulting a trade union rose by 39%

• Working Time Regulations accounted for 30%

• The highest amount of compensation awarded was
o £387,000 in a Disability Case
o £300,000 in a Sex Discrimination Case

The number of unfair dismissal claims rose in the 12 months ending April 2013. They went up to nearly 50,000, from just over 46,000 in 2012. Unfair dismissal claims accounted for 15% of total claims made.

This is a surprise! One reason for this being a surprise, is that 12 months ago, the length of service required to claim unfair dismissal was doubled from 12 months to two years. Many felt that this would see a reduction in the numbers of Unfair Dismissal claims; clearly this is not the case.

Total complaints made were up by 3% and reached nearly 333,000 over the year to April 2013 – but these complaints were made by lower number of claimants – 191,500.

This continues the trend over recent years that people put more than one complaint in their claim; typically adding some form of discrimination complaint on top of unfair dismissal or redundancy.

The number of employment tribunal claims for failure to inform and consult (with a trade union normally) during redundancies rose by 39% from 7,984 to 11,075 and has now risen by a staggering 146% since 2007/8.

This is probably a reflection of the tough economic times employers have been faced with in recent years. These claims are normally made by trade unions and Employers do need to be aware of their legal obligations in these situations.

Recent case law has also created uncertainty over when an Employer has to consult with the trade union, so best advice at the moment is to err on the side of caution and involve the trade union, or elected representatives, whenever changes in the numbers of the workforce are being considered.

Employment Tribunal claims under the Working Time Regulations accounted for 30% of the total number of claims and rose from 94,697 claims in 2011/12 to 99,627 in 2012/13. The total number of Working Time Regulations claims has risen by 79% since 2007/8, with many of these relating to Holiday pay disputes.

The statistics show that employment tribunal claims for disability discrimination, equal pay, race discrimination, age discrimination and detrimental treatment / unfair dismissal connected with pregnancy all fell. However, employment tribunal claims relating to the Part Time Workers Regulations and ET claims for discrimination on grounds of religion or belief and on grounds of sexual orientation rose – although the numbers involved in the latter were only around the 600 mark.

The highest amount of compensation awarded was some £387,000 in a Disability Case, followed by another award of well over £300,000 in a Sex Discrimination payout. Much of this will be for future losses of earnings and not damages to feelings – which are modest in comparison.

These awards are however a reminder that compensation for Discrimination complaints are uncapped, so Managers and Line Managers need to be well aware of these at an early stage to minimise the risk to the business both financially and through damage to reputation.

In order to minimise the risk of an employment tribunal claim being brought it is advisable to have clear policies and procedures in place, take steps to implement them, for example through management and supervisory staff training, and to take specific employment law advice before dismissing an employee, announcing redundancies or taking disciplinary action short of dismissal.

To find out how Employment Law Training Limited can help, get in touch:

Derek Eccleston MA FCIPD
01789 470700