Cases2304190/2023

Claimant v Aliaxis UK Limited

29 July 2025Before Employment Judge E P Morgan KCAshfordin person

Outcome

Partly successful

Individual claims

Unfair Dismissalsucceeded

The Tribunal found the dismissal was unfair because the Respondent dismissed on grounds of capability without exploring whether payments from the insurer (Unum) should be reinstated in light of its conclusion that the Claimant was genuinely unfit for work. Alternatively, the Respondent should have given the Claimant a proper opportunity to understand and meet the allegations of fraud and put the surveillance material before the Occupational Health specialist. The Respondent closed off the insurance alternative to dismissal without transparency or procedural fairness.

Direct Discrimination(disability)failed

The Tribunal concluded that in each case the Claimant was not treated less favourably because of his particular disability. In respect of dismissal, a comparator with similar abilities who was also believed to be incapable for the foreseeable future would have been treated the same way. The allegations about being accused of fraud and threatened with resignation failed because the 'reason why' Ms Askham acted was her belief that the Claimant was not disabled (i.e. was a fraudster), not because of his disability.

Discrimination Arising from Disability (s.15)(disability)succeeded

The Respondent conceded that the dismissal was unfavourable treatment arising from the Claimant's disability (his incapacity for work). The Tribunal found the dismissal was not a proportionate means of achieving a legitimate aim because a less intrusive measure was available: contacting Unum with Dr Prakesh's report and inviting them to resume payments. The Respondent's needs would not have been compromised by this approach. The existence of the insurance policy made dismissal disproportionate in these circumstances.

Failure to Make Reasonable Adjustments(disability)failed

The Respondent accepted imposing a requirement to perform all aspects of the job and that this placed the Claimant at a substantial disadvantage. However, the Claimant sought a 'complete change of duties' requiring a different office job. The Tribunal accepted there was no existing office job into which the Claimant could be slotted and that the duty to make reasonable adjustments did not extend to creating a new role for which the Respondent had no use. The Claimant had not applied for existing vacancies before his employment ended and the one he did apply for he was not qualified for.

Harassment(disability)failed

The harassment claim relating to surveillance was time-barred (last surveillance 14 March 2023, ACAS contacted 9 August 2023). Had time been extended, the Tribunal would have dismissed it anyway, finding the surveillance was not related to the Claimant's disability (it arose from suspicion he lacked the protected characteristic) and it was not reasonable for the conduct to have the harassing effect. The second harassment allegation (refusing to accept fit notes) failed on its facts.

Facts

The Claimant was a warehouse operative who began experiencing back pain (myofascial dysfunction of lumbar spine) in 2021-2022. He was absent from work from around March 2022. The Respondent arranged for him to be surveilled by private investigators in early 2023 after the HR Director (Ms Askham) reviewed his social media and became convinced he was malingering. Ms Askham instructed the insurer (Unum) to cease paying income protection benefits and initiated a capability process. The Claimant was dismissed in June 2023 on grounds of incapacity, despite Occupational Health confirming he was genuinely unfit. Ms Askham deliberately withheld the surveillance material from the decision-makers and OH specialist.

Decision

The Tribunal found the Claimant was disabled and that his dismissal was both unfair and discriminatory. The dismissal was unfair because the Respondent should have contacted the insurer to reinstate payments once satisfied the Claimant was genuinely incapable, or should have transparently addressed fraud concerns with full procedural fairness. The dismissal was discrimination arising from disability because it was not proportionate to dismiss when the less intrusive alternative of resuming insurance payments was available. Direct discrimination and reasonable adjustments claims failed. The Tribunal applied a 20% Polkey reduction and limited compensation to September 2024.

Practical note

An employer cannot dismiss an employee for incapacity on one hand whilst simultaneously blocking their access to income protection insurance on suspicion of fraud without either transparently investigating the fraud allegations with procedural fairness or reinstating insurance payments once satisfied the employee is genuinely incapable.

Adjustments

Polkey reduction20%

The Tribunal estimated a 20% chance that Unum would have rejected the insurance claim after investigation, leading to a lawful dismissal. This means the Claimant would have received 56% of his pay (80% of 70% insurance benefit) until 19 September 2024 when his two-year entitlement would have ended. The Claimant would inevitably have been dismissed at that point as he remained unfit to return to work.

Legal authorities cited

Chief Constable of West Yorkshire Police v Khan [2001] ICR 1065English v Thomas Sanderson Blinds Ltd [2008] EWCA Civ 1421Tarbuck v Sainsbury's Supermarkets Ltd [2006] IRLR 664Bank Mellat v Her Majesty's Treasury (No. 2) [2013] UKSC 39Chief Constable of West Yorkshire Police v Homer [2012] UKSC 15Barton v Investec Henderson Crosthwaite Securities Ltd [2003] ICR 1205

Statutes

EqA 2010 s.26EqA 2010 s.23EqA 2010 s.21EqA 2010 s.20ERA 1996 s.94ERA 1996 s.98EqA 2010 Sch 1 Para 2EqA 2010 Sch 1 Para 5A1EqA 2010 Sch 8 Pt 3 Para 20EqA 2010 s.15

Case details

Case number
2304190/2023
Decision date
29 July 2025
Hearing type
full merits
Hearing days
4
Classification
contested

Respondent

Sector
manufacturing
Represented
Yes
Rep type
barrister

Employment details

Role
Warehouse Operative
Service
2 years

Claimant representation

Represented
No