
Warehouse operative unfairly dismissed when employer failed to approve health cover payments
Published Aug 19, 2025
A warehouse worker who was accused of being a fraudster and faking the extent of his back pain was unfairly dismissed by his employer when they decided not to authorise health cover payments after occupational health found he was unfit for work.
In the case, Mr Wilson was claiming 70% of his salary under his employer’s insurance policy whilst unfit for work. The employer, Aliaxis, appointed a private investigator to check the extent of Mr Wilson’s back problems. The investigation provided Aliaxis with video clips showing Mr Wilson “moving freely” and tracked him walking at a “brisk pace” of 4mph which they found to be inconsistent with someone with significant injuries.
The employer told their insurer to cease health cover payments because of concerns about Mr Wilson’s alleged fraudulent behaviours.
During a subsequent capability process an Occupational Health (OH) Assessment was conducted which found Mr Wilson unfit and not capable of returning to work for at least three months. Mr Wilson was subsequently dismissed “because of his ongoing medical condition and inability to fulfil his contract obligations”.
Tribunal findings
The Tribunal found that:
Any reasonable employer, on receiving the OH report, would have contacted their insurer about resuming sickness absence payments.
Mr Wilson’s dismissal was unfair because Aliaxis “could not” dismiss for capability without first exploring if payments from the insurer should be reinstated.
Aliaxis should have given the insurer a copy of the OH report and asked them to consider resuming payments to Mr Wilson.
Learning for employers
The key learning points for employers from this case are:
Decisions on employee disability and illness must be made based on facts and not “rumours, gossip or assumptions”.
Do not pre-determine if someone is telling the truth without first obtaining sufficient evidence.
Seek out professional support such as OH if in doubt about an employee’s health claims.
Explore all available options before a dismissal.
Consider if your health insurance scheme (if you have this option) can help an employee to remain in employment.
A more detailed article about this case can be found here.