Within the business we have an employee and a line manager whose working relationship has completely broken down. The Line Managers has been with us 20 years and has an unblemished record. The employee has been in post 3 months and has no previous employment issues, references where excellent.
The Line Manager is very particular about how tasks are undertaken, wants to dictate letters/documents to the employee, and is constantly returning work red circled. The employee sees this as micro managing and taking her initiative and not trusting her to do a good job. The employee had a probation meeting at which none of the performance issues were highlighted, until the feedback from was received after the meeting. At this point the employee went off sick with stress. We have mediated between the two employees and tried to get them to come to a workable solution to enable them to work together, however both parties are saying working together is having a detrimental impact on their health (stress) and are refusing to work together.
I am now unsure what action to take to get this situation resolved. As the employee has less than 2 years service we could dismiss. Any advice would be gratefully recieved?