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View full libraryThis Termination of Employment (Long Term Sick) Letter provides formal written confirmation that an employee's employment is ending on capability grounds following a prolonged period of sickness absence. It records the medical evidence, support considered, reasonable adjustments, alternatives and final decision.
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-letter-template.jpg "Termination of employment (long term sick) letter template")
If you are managing sickness absence, the toolkit brings together practical HR templates covering absence reporting, return-to-work meetings, reviews, support and formal action.
This template brings together the key information, sections and considerations you need to create a clear, comprehensive and professional HR document. Preview the document below.
[Sender name]
[Sender address]
[date]
[Recipient name]
[Recipient address]
Dear [Recipient first name],
Outcome of capability process
Following the capability process concerning your long-term sickness absence, I am writing to confirm the decision to terminate your employment on the grounds of capability.
This decision has been reached after consideration of your absence, the medical and occupational health information available, the support and adjustments considered, the possibility of your return to work and the representations you have made during the process.
Your sickness absence
You have been absent from work since [Date] due to ill health.
During your absence, we have maintained contact with you and held a number of discussions/reviews regarding your health, your ability to return to work and the support that may be available.
The relevant absence and review history is summarised below:
| First day of absence: | |
| Total period of absence: | |
| Formal review meetings held: | |
| Most recent review meeting: |
Medical and occupational health information
In reaching this decision, we have considered the medical information available to us, including:
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-letter-template-preview.jpg "Termination of employment (long term sick) letter template preview")
This letter provides a structured way to confirm the difficult decision to terminate employment where an employee's long-term ill health means they are unable to return to work or continue performing their role within a reasonable timeframe. It is designed to follow a capability process rather than treat sickness absence as misconduct.
The letter explains that the decision has been reached following consideration of the employee's medical position, absence history, ability to return and the requirements of their role. It should reflect the evidence and discussions that have taken place during the capability process.
Before dismissal, employers should consider ways of supporting a return to work, including occupational health advice, medical evidence, phased returns, changes to duties and reasonable adjustments where the employee is disabled. The letter provides a place to record these considerations.
The employer should consider whether the employee could return to their existing role with support or adjustments and whether any suitable alternative role or other workable arrangement exists. The decision should explain the conclusion reached without making assumptions about the employee's health.
The letter clearly records the termination date, notice arrangements, final salary, accrued holiday and other payments due. It can also confirm arrangements for company property, benefits and any continuing contractual obligations.
The employee should be given a clear opportunity to appeal the decision. The appeal should consider whether the process was fair, whether relevant information was properly considered and whether any new evidence or circumstances should affect the decision.
Related HR resources and workflow
Explore the HR resources that may be relevant before and / or after using the Termination of employment (long term sick) letter, helping you understand the wider process, maintain appropriate documentation and follow a consistent approach.
Our Absence Review Meeting Script Template facilitates constructive discussions, identifying causes and solutions for improved attendance.
Our dismissal appeal letter template can help you formally challenge your dismissal.
Use these best practice actions, recommended timescales and process stages to understand when and how the Termination of employment (long term sick) letter should be used, helping ensure each step is handled consistently and appropriately documented.
Understand the common mistakes to avoid when using this HR template, helping you reduce risk, prevent unnecessary costs and ensure the process is handled correctly.
Potentially, but long-term sickness does not automatically justify dismissal. The employer should first consider whether the employee can return, what support or adjustments could help, whether there is a reasonable prospect of returning and whether any alternative arrangements or roles are available.
There is not an absolute requirement to obtain an occupational health report in every case. However, appropriate medical evidence can be very important when making a capability decision, particularly where the prognosis, adjustments or likely return date are unclear.
If the employee is disabled under the Equality Act 2010, the employer must consider reasonable adjustments. This can include adjustments to duties, working arrangements, equipment, the workplace or absence management. Dismissal should only be considered after reasonable options have been properly explored.
Yes, an employee can be dismissed while absent through sickness, but the employer must still follow a fair capability process and consider appropriate support, medical evidence, reasonable adjustments and alternatives.
Normally, yes. The employee will generally be entitled to the applicable notice or lawful payment in lieu, together with payment for accrued but untaken holiday and any other sums properly due under their contract and the law.
HRDocBox templates are designed specifically for UK employers and provide a practical starting point aligned with UK employment law, Acas guidance and real-world HR processes. They are structured to help employers document a capability process consistently rather than relying on an unstructured AI-generated letter.
How this content is developed and reviewed
The Termination of employment (long term sick) letter template is developed using a practical HR methodology that considers current UK employment legislation, ACAS guidance, CIPD good practice and the real-world HR process it supports. Templates and supporting information are regularly reviewed and updated, with additional reviews triggered by significant changes to legislation, guidance or established HR practice, helping ensure each document remains practical, relevant and suitable for UK employers.
Darryl Horn, Chartered HR Director
Darryl is a Chartered HR professional with over 25 years' experience in senior HR and employee relations roles.
He has extensive practical experience of managing sick management HR processes and founded hrdocbox to provide businesses with practical, professionally developed HR resources grounded in UK employment law and best practice.
HRDocBox has been creating practical UK HR documents since 2009.
"Darryl provides support and advice with excellent judgement, and has a strong understanding of people, policies and UK employment legislation."
"He is someone I trust; consistent, dependable, and committed to doing things properly."
Whether you employ 5 people or 50, hrdocbox gives you the structure, documents and expertise needed to manage employees professionally and legally.
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