There will be times when employees are not fit to undertake their current role.  This may be temporary, or for a few months or years, or permanent.  In these circumstances it is important for the employer to know the prognosis, particularly if there are no options for adjusting the work or workplace to enable the employee to continue in employment.  A capability dismissal on health grounds can be unfair; employers therefore need to know the likelihood of a return to regular and effective work.

In some cases employees who are permanently medically unfit for their work may be eligible for early payment of pension benefits.  This is often called 'ill-health retirement'.  It is important that the employee is fully assessed to determine the long-term prognosis.  It is not uncommon for individuals to have a medical condition that will last for several years but that is expected to recover in the long term.  These individuals are unlikely to meet the terms and conditions of the pension scheme.

There is an increasing body of evidence1 that clearly shows that individuals who retire early have poorer health and early death compared to individuals with the same medical condition at the same stage who remain in work.  A decision to retire an individual on medical grounds should not therefore be taken lightly.  It should not be used as a 'tool of convenience'.

Most pension schemes have now tightened their rules, and require reports from occupational physicians before they accept that employees are entitled to early payment of pension benefits.  Fund trustees will in most cases now only accept genuine applications where the medical condition is clearly diagnosed, and there is objective evidence that the individual is not only incapable of work now but that the condition is permanent.  This evidence is not just the word of the GP or consultant, but in many cases needs to be supported by evidence from research.

Where there is concern that individuals may be unable to remain in work for the foreseeable future or permanently, we can advise on alternative roles and redeployment, whether individuals should be considered for early retirement on health grounds, and whether they meet the requirements of the pension scheme for early payment of pension benefits.

1. Age at retirement and long term survival of an industrial population: prospective cohort study    Shan P Tsai, Judy K Wendt, Robin P Donnelly, Geert de Jong, Farah S Ahmed    BMJ  2005;331:995