Dismissal or Resign (prior to retirement)

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I’m currently on long-term sick leave due to trauma and grief. Occupational Health has advised that I’m not fit to return to work.

My employer has explained that the next step would be a capability process leading to dismissal on health grounds, this would include three months’ pay in lieu of notice and retirement. This may or may not qualify for I'll health retirement.

Alternatively, I have the option to resign, give three months’ notice, and retire.

I have to admit, the idea of being dismissed, even on health grounds, feels quite personal (letting myself down) and difficult to process after many years of service.

I’d really appreciate hearing from anyone who’s been through something similar, particularly about the practical or financial implications of either route, and any advice on how best to approach this situation.

Definitely do not resign. It could affect any entitlements going forward .

Dismissal on grounds of ill health on recommendation of OH is totally different to general dismissal. It will outline the health reasons you cannot work and you may be eligible for benefits/early retirement

Thanks for replying. I have a lot to think about and not able to with any clarity.

What do ACAS say?

I’venot been in touch with ACAS but I am in the early stages of working with my union.

I would ask HR for my options in writing along with the financial implications for both on their end.

You need to let them dismiss you. Think of it this way - either get nothing, or get your notice period +/- ill health retirement. It's not your fault that you're too ill, so don't do anything voluntarily. These processes are in place to protect you.

I’m in a similar predicament OP. Been on long term sickness now for 9 months. My options are either, being dismissed on medical grounds ( 6 weeks pay in lieu of notice ( bad I know!) or apply for ill health retirement. I don’t want to do either, but I have cancer and things aren’t going in the way all the “ together we will beat cancer” ads are suggesting. So, once I’ve had my latest scan results, I will be emailing my union rep, who will contact HR and get the ball rolling. I may not qualify, which will be another dilemma!

Best of luck, it’s tough, but if you aren’t fit for work, then unfortunately these are your options. Don’t resign, as a PP mentioned, as you could lose your entitlements.

I’ve supported colleagues in your position . This has included what were intended to be compassionate, sensitive conversations with people I managed who were never going to be well enough to return to work before they retired. Being dismissed for medical reasons is not like being sacked, although I appreciate it might not feel different to the person it’s happening too. In both of the cases I was involved with it was a shock for the staff member to realise and accept that ending their employment wasn’t really within their control. Having to accept that you are no longer able to work because you are not well enough (and never will be ) must be very difficult. Take all the independent advice you can but I definitely wouldn’t resign in your shoes.

I supported a work colleague through similar. She was really worried about the future implications (early 40s). I don't know if her experience is unusual, but when she claimed benefits, the assessor was really empathetic, put her in the unable to work group and told her to concentrate on getting well again. She actually felt able to start looking for work before any review from the Jobcentre happened, maybe around 6 months of being off? And her sickness record etc wasn't an issue for her new employer.

I really appreciate your response based on experience. Some tears here.

I do feel so rubbish about dismissal though know that this maybe the better option financially.

I still have some part time pay but know that I need to make a decision.

My adaptations have only been those that suit my employer too but I haven't the focus to challenge these.

I am more ‘just re-sign’ rather than be dismissed.

I have no ill feelings around this and understand completely that attendance management is a process, having had to instigate this for employees. I know I won't be able to return to work and know that I can't expect to stay on. Hard coming to terms with that.

I am within early retirement age and won't be eligible for any other support or benefits. Pension will be fine. Not sure I'm up to fighting through the process of ill health retirement either.

You need to separate from the emotion of the word dismissed and look at what they are actually saying = that both sides acknowledge you are too ill to come back to work and therefore your employment needs to come to an end. Resigning would be a terrible idea

Thank you, great advice as I feel quite embarrassed. A long, successful career and this is it!

My employer wanted to dismiss an employee who has cognitive decline. Employee saw a solicitor and ended up resigning with a very nice lump sum £

I understand that the term “dismissal” conjures up negative feelings for most people, but this is unfortunately the legal term when an employer is making the decision rather than the employee.

It’s not the same as being dismissed for a disciplinary matter, it’s a recognition that you are unwell, and unlikely to be well enough to return to that type of work in the foreseeable future/before your expected retirement age.

I would encourage you to consider all options, and support on offer - if they’ve indicated that you would be assessed for ill health early retirement, then absolutely ask them to do that, if it’s agreed then financially you are likely to be better off than if you resign.

Unfortunately, in order to be eligible, most insurers/pension providers would expect employers to end the employment contract in order for the ill health payments to commence, and if you resign, then you’d no longer be eligible for this.

I empathise as it must be very difficult to be in this position 💐

Union rep here.

If you are talking to your union you must take their advice (which will definitely not be 'resign'.

You don't need to spend time worrying about this as you obviously have a lot on your plate. Just wait to hear what the union advise and do that.

Do not resign. Making yourself voluntarily unemployed may have long implications.

Capability ill-health isn’t dismissal. Lose that word. It’s termination of employment and all that means is that the contract you have entered into with each other will cease due to the inability of you to continue in role due to health reasons, which you accept.

It’s a process, not a judgement, and it protects you and them. Look at it in that way, and manage it to achieve the best outcome.

good luck

I would suggest not being rushed into any decisions. The HR processes may well take some time, it might be better to wait and see for a while, depending on what you have actually been given in writing.

Thank you for your kind and reasoned response. I really appreciate it.

I really am grateful for all responses.

Just a quick update, my union are supporting and in the short term have advised me not to resign without further advice from them.

I had also remembered that I have a clause in my contract which means I can't work locally, using my experience, for 8 months. This is quite limiting if I resign with short notice and feel well enough to work.