Stress, Disability and Dismissal: Key Lessons from Murphy v SEB

01 January 0001

Claim

The Issue

Jacqueline Murphy, a Team Leader in the International Tax Department of Revenue Jersey, brought claims against her employer, the States Employment Board, following her dismissal while on long-term sick leave due to work-related stress. Her claims included:

  • Victimisation: Alleging dismissal due to complaints of discriminatory behaviour linked to her hearing impairment.
  • Discrimination arising from disability: Arguing her dismissal was due to absence caused by stress, which she claimed was a disability.
  • Unfair dismissal: Challenging the fairness of the dismissal process and the reasons behind it.

The employer counterclaimed that Murphy failed to return government property.

The Outcome

  • Victimisation: Dismissed – The tribunal found no evidence that Murphy was dismissed because of her discrimination complaints.
  • Discrimination arising from disability: Upheld – The tribunal found that her stress-related absence constituted a disability and that her dismissal was not a proportionate response. Compensation is yet to be determined.
  • Unfair dismissal: Upheld, but no compensation awarded – The tribunal found the dismissal unfair due to discrimination but reduced the award to zero because:
    • Murphy rejected a suitable alternative role without engagement.
    • She refused a pre-tribunal settlement offer equal to the maximum compensation.
  • Counterclaim (failure to return property): Dismissed – The tribunal accepted Murphy’s evidence that she had returned the items.

Lessons Learned

  • Disability and Stress: Stress will almost certainly qualify as a disability under Jersey law if it is long-term and accompanied by symptoms like anxiety and panic attacks. Employers must tread carefully when managing attendance linked to disability including mental health. The fact that the Employer had an Occupational Health report that stated that the claimant “showed no signs of mental illness and was unlikely to be classified as disabled” was given no weight by the Tribunal. The case reinforced the unique  provision in Jersey law that unlike other jurisdictions where the disability must result in an impairment that has a significant adverse effect, in Jersey the impairment does not have to have any adverse effect at all let alone a significant one. In Jersey the test is “could it have an adverse effect!
  • Dismissal Process: Employers must ensure that dismissal decisions are proportionate and consider all reasonable alternatives, for large employers with multiple sites and departments this should include consideration of redeployment outside the immediate department or location.
  • Engagement and Communication: Employers should keep accurate records that demonstrate whether and how employees have actively engaged (OR NOT) with support processes and redeployment offers. Failure to do so can affect tribunal outcomes, including compensation.
  • Investigations and Grievances: Employers should document and follow through on complaints thoroughly. However, repeated unsubstantiated complaints may not prevent dismissal if handled appropriately.
  • Tribunal Conduct: The tribunal emphasised the importance of fair process, accurate documentation, and the need for decision-makers to  record and evidence consideration of alternative options before dismissal.
PERFORMANCE NOW