Medical evidence and employee capacity: lessons for employers
Managing an employee’s capacity for work requires care, relevant evidence and a fair process. When medical certificates contain broad restrictions, employers may need clarification to understand what work the employee can perform and whether reasonable adjustments could support a return.
A recent Fair Work Commission decision involving Monash Health illustrates how those issues can affect an unfair dismissal assessment. Its findings depend on the particular evidence and process in that case, so employers should seek advice before applying them to another workplace.
What the Commission considered
In Yau Yong Ryan Sim v Monash Health [2026] FWC 2633, the employee’s certificates limited him to four hours of work each week in a non-stressful role. The Commission accepted that he could not fulfil the inherent requirements of his full-time position at the time of dismissal.
The employee had been away from work for more than six months, and certificates supplied between July and December 2025 used identical terms. Monash Health repeatedly sought further medical and capacity information to clarify the position and consider possible adjustments, with at least ten opportunities to provide information identified in the decision.
The Commission found that the employee had declined those opportunities and that the available evidence established a valid reason for dismissal related to capacity. It also considered the notification of the proposed reason and the opportunities provided to respond, ultimately finding that the dismissal was not harsh, unjust or unreasonable.
Ask questions that help assess the work
Where a certificate leaves important questions unanswered, explain what clarification is needed and how it relates to the employee’s role. Relevant questions may concern functional restrictions, the expected duration of those restrictions and adjustments that could help the employee perform the work.
Keep the process focused on the information genuinely needed to assess capacity. Record the requests, responses and support considered, and give the employee a reasonable opportunity to participate rather than treating a broad certificate as the end of the discussion.
Consider adjustments and procedural fairness
Assess capacity against the inherent requirements of the actual role and consider practical adjustments in light of the available medical information. Keep a clear record of what has been explored and why particular options may or may not be workable.
Before any final decision, explain the concerns and provide a genuine opportunity to respond. The Monash Health decision concerns an unfair dismissal claim and does not establish a general permission to dismiss whenever medical information is incomplete. Other applicable obligations, including discrimination and workers’ compensation requirements, need separate attention.
Get support before making a final decision
The BelRose Group’s industrial and employee relations support helps employers work through capacity and workplace health matters while considering operational needs and employee wellbeing. Contact our team about an employee capacity matter if you would like assistance reviewing the evidence and planning a fair process.
Adapted from The BelRose Group’s November 2026 newsletter. This article provides general information, not legal advice. Obtain advice tailored to the circumstances before making employment decisions.