Depressed employee loses disability discrimination case
September 5, 2006
Just because a disabled employee is off sick due to their disability there is no requirement to pay them more in sick pay than any other employee who is not disabled.
This was the EAT judgment of August 4 given in the case of O’Hanlon v The Commissioners for HM Revenue & Customs [2006] (UKEAT/0109/06).
Mrs O’Hanlon worked for HM Revenue & Customs and had a number of absences related to her disability (clinical depression). Under her employer’s sick pay policy Mrs O’Hanlon had used up her entitlement to 26 weeks’ full-pay and was put onto half-pay. Mrs O’Hanlon claimed that the failure to continue paying her full-pay amounted to both unjustified disability related discrimination and involved a failure of her employer to make a reasonable adjustment on grounds of her disability.
The employment tribunal took the view that Mrs O’Hanlon received exactly the same as any other employee who was absent for such lengthy periods. Therefore, her reduction to half-pay was not related to her disability but rather to the application of her employer’s sick pay policy.
However, the EAT considered that the employment tribunal had been wrong to compare Mrs O’Hanlon with a non-disabled person also absent for the same length of time. The reason that Mrs O’Hanlon had been absent from work for so long was due to her disability. Therefore, it could be argued that Mrs O’Hanlon had been discriminated against on grounds of her disability. But was the continued payment of full pay to a disabled employee after 26 weeks a reasonable adjustment the employer ought to make on grounds of an employee’s disability?
The EAT agreed that there was no reasonable adjustment which could be made to the level of sick pay to favour disabled employees. In fact there were powerful economic reasons for the rule adopted. It would cost a very significant sum to pay full pay to all disabled employees absent sick in circumstances where their pay would otherwise be reduced. Therefore, a failure to increase pay for disabled employees was justified.
The EAT’s final conclusion was that although there had been a case of disability discrimination, the employer was justified in not making a reasonable adjustment that would have the result of increasing sick pay for disabled employees. Source: Employment Appeal Tribunal,
August 7, 2006

