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ARTICLE · 20 FEBRUARY 2012

Terminating employees on sick leave – can be a recipe for disaster.

There is a presumption that if an employee was dismissed when on sick leave, the dismissal was due to the sick leave.

AustraliaEmployment and HR

One of the biggest issues for an employer is dealing with underperforming staff members who abuse their sick leave entitlements or access their sick leave for a stress claim immediately ensuing a disciplinary meeting.

Whilst an employer is not to be prevented from terminating an employee whilst on sick leave if the termination is attributed to performance-based or other lawful reasons, it leaves the employer exposed to a claim. In the event that an employee then lodges a general protections (unlawful termination) claim the onus will be on the employer to prove that the dismissal was not associated with the employee taking sick leave (or other unlawful reasons).

What often happens is that an employer sees an underperforming employee and, whilst frustrated does not take disciplinary action against them because of challenging demands of operating the business. The employee will then take their fourth instalment of sick leave at an inconvenient time, which drives the

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