What Is The Difference Between Termination By Mutual Consent Or Dismissal?

The Employment Appeal Tribunal (EAT) held in the case of Riley v Direct Line Insurance Group that it was possible to terminate employment on the grounds of ill-health by mutual consent as opposed to dismissal. This arose from the termination of the Claimant's employment to allow him to benefit from the employer's permanent health insurance scheme.

In this case the Claimant had Autism Spectrum Disorder and was employed by Direct Line as a Home Claims Advisor from March 2012. The Claimant was repeatedly absent from work due to this condition over a period of three years. Direct Line worked to support the Claimant to enable him to return to work. These attempts were unsuccessful, however, and following medical assessment, the Claimant was deemed unable to ever return to work permanently.