Surveilling sick employees could cost you more than you think

Surveilling sick employees could cost you more than you think

Insight from an HR consultant in Wychavon on why covert surveillance of employees on sick leave is risky and what to do instead.

 

I’m hearing from more business owners lately who suspect someone on their team is taking advantage of sick leave.

 

The instinct is always the same: get proof.

 

But three recent tribunal cases show just how badly that approach can backfire. One employer ended up with a bill of over £329,000.

 

Before you even think about hiring a private investigator, here’s what you need to know.

 

Start with the right steps before you consider surveillance

 

If you genuinely believe an employee is exaggerating or fabricating their illness, the first thing to do is refer them to occupational health. An independent medical opinion gives you a clear picture of whether their reported symptoms match the clinical reality.

 

Return-to-work meetings are another tool that often gets overlooked. Having a structured conversation every time someone comes back from absence builds a paper trail. It also gives you a chance to pick up on inconsistencies early, without needing to resort to anything more invasive.

 

A proper absence management process can resolve most concerns on its own. If it doesn’t, and you still have genuine grounds for suspicion, get professional HR advice before going any further.

 

And if surveillance does go ahead and footage is collected, don’t act on it until you’ve had a medical professional review what it actually shows. Footage of someone walking to the shops doesn’t necessarily contradict a chronic pain diagnosis.

 

What went wrong in three recent cases

 

Three employers recently found out the hard way that surveillance footage, without proper medical context, can do more harm than good.

 

Pilkington UK employed a team leader called Alan Jones, who was on sick leave following cancer treatment. He’d been diagnosed with radiation-induced neuropathy. Pilkington hired a surveillance firm and filmed him doing some work on a friend’s farm. They treated this as evidence of secondary employment and dismissed him for gross misconduct.

 

The problem? They never sought medical input on whether the activity in the footage was actually inconsistent with his condition. They also shifted the allegation partway through the process, moving from suspected secondary employment to physical activity inconsistent with sick leave, without giving him a fair opportunity to respond. The tribunal ruled the dismissal unfair. The award came to more than £329,000.

 

Aliaxis, a plastic piping manufacturer, had a warehouse worker called Neil Wilson who was off with chronic back pain. They hired an investigator to follow him and also checked his social media. Based on what they found, they decided he was “moving freely” and cancelled his salary. At a meeting, Wilson was told he could resign, face capability proceedings, or be reported to the police for fraud.

 

The tribunal found the employer was “overly eager” to push him out. Wilson was awarded £30,682 for unfair and discriminatory dismissal.

 

BMW employed a factory worker called Mohamed Kerita, who was signed off with chronic back pain. BMW hired a security firm to film him. The footage showed him doing everyday things like walking and bending over his car. BMW concluded he’d fraudulently claimed sick pay and dismissed him.

 

The tribunal found that medical evidence supported his inability to perform his physically demanding role. It also found he wasn’t even receiving company sick pay at the time the footage was recorded. His dismissal was ruled unfair and discriminatory. A remedy hearing is still to come.

 

The thread running through all three cases is identical. Employers collected footage, jumped to conclusions, and dismissed without getting medical input or running a fair process.

 

Is covert surveillance ever lawful?

 

Yes. Monitoring an employee covertly isn’t automatically illegal. But the bar is high.

 

Under UK GDPR, you need a lawful basis for collecting that kind of personal data. Before any surveillance takes place, you should carry out a Data Protection Impact Assessment. ICO guidance makes clear that covert monitoring should only happen in exceptional circumstances, specifically where telling the employee would undermine the purpose of the investigation.

 

The surveillance also needs to be proportionate and limited in duration. Having a documented, specific reason to suspect someone is very different from acting on a hunch.

 

One thing that helps: having a workplace policy that makes employees aware covert surveillance could be used in certain situations. If your evidence is ever challenged at tribunal, that policy puts you in a much stronger position. As part of our HR consultancy services in Wychavon, I regularly help businesses put policies like this in place.

 

Why disability-related absence is especially high risk

 

Conditions like chronic back pain, neuropathy, and myofascial dysfunction all qualify as disabilities under the Equality Act 2010. They may not be visible, but they’re protected.

 

If someone’s absence is connected to a disability and you surveil them, then dismiss them based on that footage, you’re exposed to claims on two fronts: unfair dismissal and disability discrimination.

 

Disability discrimination awards have no cap. And from January 2027, the compensation cap for unfair dismissal claims is also being removed. That means there will be no upper limit on what a tribunal can award if it finds in the employee’s favour.

 

The financial risk here is serious. But so is the reputational damage.

 

Questions worth asking yourself

 

If you’re currently dealing with a long-term absence that doesn’t feel right, take a moment to consider these:

 

  • Have you referred the employee to occupational health for an independent medical view?
  • Do you have a structured absence management process that’s being followed consistently?
  • Is there a policy in your employee handbook covering covert monitoring?
  • If you’ve already gathered footage, has a medical professional reviewed it before you’ve drawn any conclusions?

 

If the answer to any of those is no, you’ve got gaps that could leave your business vulnerable.

 

How I can help

 

I work with small businesses on absence management, occupational health referrals, and fair investigation processes.

 

If you suspect an employee is taking advantage of sick leave, I can help you handle it properly so you’re protecting your business rather than creating a bigger problem.

 

As an outsourced HR consultant in Wychavon, I’m here to give you calm, practical advice when you need it most.

 

If you’d like to talk it through confidentially, get in touch and we can arrange a discovery call.