Worker unfairly dismissed after fraud allegations

September 1, 2025

A warehouse operative has won a claim for unfair dismissal after being accused of faking illness and told he could either resign, face dismissal through a capability process, or risk referral to the police.

The employee had been off work with chronic back pain and was receiving income protection benefits through an insurer. However, payments were stopped after the employer reviewed social media posts and surveillance footage.

Despite occupational health reports confirming he was unfit for work, the worker was dismissed on capability grounds.

The tribunal ruled the dismissal unfair and discriminatory, finding the employer should have provided the insurer with medical evidence and sought to reinstate payments rather than pushing for dismissal. It criticised the approach as “wanting to have their cake and eat it.”

Employment lawyers noted the case underlines the importance of relying on professional medical advice rather than assumptions, and of exploring all available alternatives before dismissing an employee with a disability.

Lesson to be learned: Employers should never predetermine whether someone is telling the truth or not without sufficient evidence and instead should seek professional assistance, such as occupational health professionals, if in doubt about the validity of an employee’s claims,” he added.

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