{"id":5474,"date":"2026-10-20T17:20:41","date_gmt":"2026-10-20T09:20:41","guid":{"rendered":"https:\/\/www.timeteccloud.com\/blog\/?p=5474"},"modified":"2026-10-20T17:20:42","modified_gmt":"2026-10-20T09:20:42","slug":"the-long-term-sick-employee-you-cannot-simply-dismiss","status":"publish","type":"post","link":"https:\/\/www.timeteccloud.com\/blog\/the-long-term-sick-employee-you-cannot-simply-dismiss\/","title":{"rendered":"The Long-Term Sick Employee You Cannot Simply Dismiss"},"content":{"rendered":"\n

An employee has been on medical leave for months. Their department struggles to cover the workload, colleagues take on extra responsibilities, and management wants a replacement. Eventually, someone asks the question HR has been avoiding: can we terminate the employee because they can no longer perform their job?<\/p>\n\n\n\n

The answer is not as straightforward as the length of their absence. In Malaysia, dismissing an employee because of prolonged illness without sufficient justification can expose employers to an unfair dismissal claim. The real challenge is determining whether the employee can still perform their duties, whether recovery is reasonably expected, and what the employer has done before deciding to end employment.<\/p>\n\n\n\n

Prolonged Illness Is Not Misconduct<\/h2>\n\n\n\n
\"\"<\/figure>
\n

One of the most serious mistakes employers make is treating genuine medical absence as a disciplinary offence. An employee who is legitimately unwell and provides valid medical certificates should not automatically be treated as unwilling to work.<\/p>\n<\/div><\/div>\n\n\n\n

The consequences became clear in Aerodarat Services Sdn Bhd v Lawerance Raj a\/l Arrulsamy<\/em>. The employee, a duty manager recovering from a serious knee condition, had extensive medical absences, including 263 days in 2019. His employer dismissed him for allegedly taking excessive leave with the intention of avoiding work.<\/p>\n\n\n\n

The Industrial Court found the dismissal unjustified, and the High Court upheld that finding. The employer had failed to prove the alleged intention to avoid work. The employee’s medical condition and his stated intention to return when fit were important to the decision.<\/p>\n\n\n\n

The lesson for HR is significant: an extensive medical-leave record does not, by itself, prove misconduct.<\/strong> Suspected dishonesty or abuse of medical leave must be supported by evidence, rather than inferred from the number of days absent.<\/p>\n\n\n\n

When Medical Incapacity May Justify Termination<\/h2>\n\n\n\n

Employers are not required to retain employees indefinitely when prolonged medical incapacity prevents them from performing their essential duties. Termination on medical grounds may be justified, but it must be supported by sufficient evidence and carried out in accordance with applicable legal and contractual requirements.<\/p>\n\n\n\n

Medical incapacity is different from misconduct, and even medical evidence of unfitness does not automatically make termination lawful.<\/p>\n\n\n\n

In Norbed Husain v Malaysia Airport Holdings Bhd,<\/em> the Industrial Court initially upheld the termination of a firefighter who had been assessed as medically unfit for his duties. However, the High Court subsequently quashed the decision because the employer had failed to follow the Medical Board procedure required under the applicable collective agreement.<\/p>\n\n\n\n

The distinction matters. In Aerodarat Services<\/em>, the employer failed to prove the alleged misconduct arising from the employee’s prolonged medical absence. The Norbed Husain case demonstrates that even where medical evidence raises genuine concerns about an employee’s fitness for work, employers must still comply with the applicable contractual procedures before terminating employment.<\/p>\n\n\n\n

Employers may also consider frustration of contract in exceptional circumstances where prolonged incapacity fundamentally prevents contractual obligations from being performed. However, it is not an automatic consequence of long-term illness or exhausted sick-leave entitlement.<\/p>\n\n\n\n

What HR Must Consider Before Termination<\/h2>\n\n\n\n

A defensible decision requires more than counting medical certificates or waiting for paid sick leave to run out. Before proceeding, employers should carefully examine several factors.<\/p>\n\n\n\n

1. Obtain Reliable Medical Evidence<\/strong><\/p>\n\n\n\n

Review current medical assessments covering the employee’s functional limitations, ability to perform essential duties and likely recovery prospects. Where a medical board is required under employment terms or a collective agreement, that procedure must be followed.<\/p>\n\n\n\n

2. Assess the Prospect of Returning to Work<\/strong><\/p>\n\n\n\n

An employee recovering from surgery may have a realistic return date, while another may face prolonged or uncertain incapacity. Employers should consider the available medical prognosis rather than assuming that months of absence mean the employee will never return.<\/p>\n\n\n\n

3. Consider Suitable Alternative Duties<\/strong><\/p>\n\n\n\n

Where practical, examine whether an existing role or adjusted duties could accommodate the employee’s medical limitations. Employers are not necessarily required to create a new position, but available alternatives can be relevant when assessing the fairness of termination.<\/p>\n\n\n\n

4. Communicate and Document the Decision<\/strong><\/p>\n\n\n\n

Give the employee an opportunity to provide medical updates and respond to concerns about their ability to work. Keep records of consultations, assessments, alternatives considered and reasons for the final decision.<\/p>\n\n\n\n

These are important considerations, not a universal statutory checklist that guarantees a lawful dismissal. Each case must be assessed against its particular circumstances, employment terms and applicable law.<\/p>\n\n\n\n

Why Medical-Leave Records Matter in a Dismissal Dispute<\/h2>\n\n\n\n

When a dismissal is challenged, an employer needs more than an explanation that the employee was absent for too long. The evidence should demonstrate what the company knew, what steps it took and why termination was considered justified.<\/p>\n\n\n\n

This makes accurate HR records important. Medical-leave dates, supporting documents and approval histories help establish the chronology of an employee’s absence. Missing or inconsistent records can make an already difficult employment decision harder to defend.<\/p>\n\n\n\n

With TimeTec HR<\/a>, employers can access attendance and leave records, while TimeTec Leave supports medical-leave applications, approval histories and attachments such as medical certificates. These records can help HR maintain an organised history of employee absences.<\/p>\n\n\n\n

However, leave records are only one part of the evidence. Employers must separately document medical assessments, employee consultations and decisions about alternative employment, while protecting the confidentiality of sensitive medical information.<\/p>\n\n\n\n

The Real Test Is Whether Dismissal Was Justified <\/h2>\n\n\n\n

Long-term illness can create genuine operational difficulties. Employers must manage staffing, maintain productivity and ensure employees can safely perform their duties. But those pressures do not automatically make termination lawful.<\/p>\n\n\n\n

Under Section 20 of the Industrial Relations Act 1967, an employee who considers their dismissal to be without just cause or excuse may seek reinstatement through the statutory representation process.<\/p>\n\n\n\n

For HR, the priority is therefore not simply deciding whether an employee can still work. It is establishing the medical facts, considering reasonable options and ensuring the eventual decision can be justified.<\/p>\n\n\n\n

Prolonged illness may explain why an employer considers termination. It does not, on its own, justify the decision.<\/p>\n","protected":false},"excerpt":{"rendered":"

An employee has been on medical leave for months. 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