Important considerations when dealing with an employee on medical leave

Case study

The Fair Work Commission (FWC) recently dealt with a case involving an employee who was dismissed after their employer refused to accommodate a request for flexible working arrangements due to medical issues.

The decision emphasises the importance of maintaining clear communication with employees on leave. This case also serves as a reminder to employers about their obligations when managing employees with medical conditions and the potential consequences of poor communication practices.

Request for flexible work

The case centred around a customer service and sales support worker who had been employed by a small business since April 2023, where duties involved administration, scheduling of work, and drawing CAD designs.

In November 2023, the employee experienced medical issues that required hospitalisation. Following medical advice, the employee approached their manager about the possibility of reduced hours or working from home temporarily, which the employer swiftly rejected.

In an email dated 28 November 2023, the employer informed the employee that they could not accommodate the request for flexible arrangements. Furthermore, the employee was directed not to return to work until they could provide a full medical clearance.

While the employee believed they could complete their duties from home if allowed to do so, the employer, a small business with only five office employees at the time, deemed the request unfeasible due to operational constraints.

Communication breakdown

What followed was a period of minimal communication between the parties. The employee focused on addressing their medical issues, as instructed. However, when they reached out to the employer on 13 February 2024 about returning to work, they received no response.

The employee gave evidence that on 29 November 2023, they had a discussion with the former operations manager who allegedly told them that the decision to decline the request was not his, but had come from higher management. The employee also claimed that they were told that the owner had expressed to other employees that they were not returning.

After nearly a month of silence following the email in February, the employee filed an application with the FWC on 5 March 2024, alleging that they had been dismissed. The employer objected, arguing that no dismissal had taken place and that they were simply waiting for the employee to provide a full medical clearance.

Employer’s conduct examined

In examining the case, the FWC acknowledged that the employer was a small business likely lacking extensive HR resources. However, was critical of the employer’s handling of the situation, particularly failure to maintain contact with the employee and the delay in responding to the request to return to work.

The FWC determined that the employee had been dismissed within the meaning of section 386 of the Fair Work Act, and found that either the employment was terminated at the employer’s initiative, or alternatively, the employer’s conduct was the primary cause of the employment ending.

Key takeaways for business owners

The FWC emphasised the importance of timely communication in these situations. The employer’s decision not to maintain contact with the employee while on medical leave, either ignoring correspondence or having significant delays in responding, was inexcusable.

The FWC stated that employers have a responsibility to maintain open lines of communication with employees, regardless of the size of the business. Furthermore, the employee’s assumption that their employment had ended due to the lack of communication from the employer was reasonable.

This finding highlights the importance of clear communication in employment relationships, especially when dealing with employees on medical leave. Additionally, this case serves as a valuable reminder for employers about the importance of carefully considering and responding to requests for flexible work arrangements, especially when related to medical issues.

If you need assistance navigating a complex employee matter, and are unsure of next steps in line with your obligations as an employer, get in touch with our team. Find our articles helpful? Remember to follow us on Facebook, Instagram or LinkedIn to keep up to date with our practical tips and information for business owners and managers.