Medical incapacity is not well-understood by employers and involve some complex areas of employment law. A medical incapacity process requires careful planning and due diligence before terminating an employee’s employment on medical, or health grounds.

When an employee’s illness or injury affects their ability to perform the requirements of their role, employers must balance operational needs with legal obligations under the Employment Relations Act 2000 (‘the Act’) and good faith duties. Getting the process wrong can expose an employer to costly personal grievances for unjustified dismissal, compensation awards, and reputational harm.