An employee has been off sick for 7 years and has been claiming through our disability insurance. It has already been established that he would never be able to return to work. However, we have a problem in that the insurance finished paying out when he was 60 in May and our retirement age is 65, so he is now not entitlement to any more benefit payments.

As his long term prognosis has already been established can we just send a letter terminating his employment and what will we have to pay him? I’m assuming that he will be entitled to his notice period but I’m a bit worried about the legislation over holiday accrued while off sick. If he is entitled to this or does the fact that he receive 75% of full pay as opposed to SSP negate this?

I’m confused but want to make sure I do this correctly.