---
title: "HR Insights: Medical Incapacity Terminations | Lessons from Recent Case Law"
description: Learn about procedural fairness in medical incapacity terminations from a recent ERA decision. Key takeaways for employers to ensure justifiable dismissals.
---

[Business Canterbury | HR Insights ](https://www.businesscanterbury.co.nz/hr-insights)

# [HR Insights: Medical Incapacity Terminations | Lessons from Recent Case Law](https://www.businesscanterbury.co.nz/hr-insights/hr-insights-medical-incapacity-terminations-lessons-from-recent-case-law)

 Written by [Michael Prisk](https://www.businesscanterbury.co.nz/hr-insights/author/michael-prisk) | Nov 25, 2025 10:47:53 PM

## Medical Incapacity Termination: Procedural Fairness Remains Critical

 

### Background

A recent Employment Relations Authority (ERA) decision, *Putaanga v MOVe Freight Ltd* [[2025] NZERA 425], highlights the importance of following a full and fair process when considering termination for medical incapacity. Employers must ensure they consult thoroughly with employees and consider up-to-date medical information before making decisions.

 

### Case Summary

Mr Putaanga, a Class 5 driver with MOVe Freight Ltd, suffered a workplace head injury in September 2019 and returned to part work in February 2020 under a return-to-work plan. In May 2022, MOVe terminated his employment for medical incapacity. Mr Putaanga claimed his dismissal was unjustified, a claim upheld by the ERA.

Key points included:

- Mr Putaanga had been unable to work more than five and a half hours per day due to fatigue, as reflected in ACC certificates.
- At a meeting on 12 May 2022, MOVe did not enquire about rehabilitation, the employee’s return-to-work programme, or his current health and prognosis.
- The ERA found the meeting lacked genuine interest in updated medical information, and the termination decision appeared predetermined.

 

### ERA Findings

While MOVe had a legitimate business case to replace an employee on ACC and had provided part-time work over 18 months, the process was procedurally unfair. The ERA noted that MOVe could have:

- Requested access to medical or ACC records, or sought consent to speak with his doctor
- Obtained an independent medical examination
- Allowed a proper opportunity for Mr Putaanga to update medical information

The ERA ruled the dismissal unjustified and awarded $9,000 for hurt and humiliation and $12,000 for unjustified dismissal. No lost wages were awarded due to ACC coverage.

 

### Key Takeaways for Employers

- Having a business justification and prior part-time work arrangement is **not sufficient** if procedural fairness is lacking.
- Always obtain up-to-date medical information before considering termination for medical incapacity.
- Give employees a **reasonable opportunity to update medical information** and allow time for pending medical assessments.
- Consider employees’ paraphrasing of expert medical information carefully before making termination decisions.

For further guidance on this case, refer to our Case Law resources. For specialist advice, contact Michael at [hradvice**@businesscanterbury.org.nz**](mailto:hradvice@businesscanterbury.org.nz)

**Or check-out our [case law updates](https://www.businesscanterbury.co.nz/business-support/resources/hr-case-law).**

[View full post](https://www.businesscanterbury.co.nz/hr-insights/hr-insights-medical-incapacity-terminations-lessons-from-recent-case-law)

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