When redundancy and long-term sickness overlap

One of the more complex issues I help clients navigate is when redundancy and long-term sickness absence happen at the same time. A client recently faced this situation: they were restructuring part of the business, and one of the roles at risk was held by an employee who had been signed off for several months due to a serious health condition.

Understandably, they were concerned about getting things right—not just legally, but morally too. They wanted to handle the process with compassion and clarity, so we worked through a step-by-step approach.

Step 1: Legal and Policy Check

We began by reviewing the Employment Rights Act 1996 in relation to redundancy, and then the Equality Act 2010—to assess whether the employee’s condition might be considered a disability. This is a crucial step, as it affects how consultation and decision-making should be approached.

The client’s redundancy and absence management policies were solid, but we made a few tweaks to strengthen references to reasonable adjustments and flexibility during consultations.

Step 2: Sensitive Contact and Support

The next step was reaching out to the employee. We drafted a supportive, clear message offering an initial update and reminding them of available support—such as access to occupational health or their EAP.

We also agreed how the consultation would work in practice, suggesting phone or video meetings at times that suited the employee. Maintaining dignity and choice here really matters.

Step 3: Fair Process, Fair Outcome

Throughout the consultation, we ensured the employee was kept fully informed and had the chance to respond, even if they couldn’t attend in person. The selection process was reviewed to confirm that it was based on objective criteria unrelated to sickness absence.

Where needed, we sought advice from occupational health to better understand the employee’s situation and any adjustments required to help them take part fully in the process.

Step 4: Communicate and Support

When the decision to make the role redundant was confirmed, the client delivered the message with care—via a video call, followed by written confirmation. They also offered practical support, including information on financial advice, counselling services, and outplacement.

Step 5: Reflect and Learn

Afterwards, we held a short review of the process. The client felt confident that they’d handled a difficult situation fairly and respectfully—and we updated their internal guidance to support managers in similar situations going forward.

Being legally compliant doesn’t mean losing the human touch. With the right preparation, it’s absolutely possible to manage redundancy during long-term sickness in a way that feels both fair and kind—for everyone involved.