Direct Line Ordered to Pay £65,000

At what point can you raise legitimate concerns with an employee whose performance has declined due to menopausal symptoms? What reasonable adjustments are required, and how much time is reasonable for improvement? The recent case of Lynskey v Direct Line provides valuable guidance.

Background

Ms Lynskey joined Direct Line as a tele-sales consultant in 2016 and consistently achieved high performance ratings. In 2019, after the introduction of a new system, she began experiencing menopausal symptoms that affected her concentration and performance. By March 2020, she was prescribed anti-depressants on her GP’s advice. Her line manager was aware of her condition and initially provided support and coaching.

In June 2020, concerns arose over an “unacceptable” customer call. Ms Lynskey was signed off with work-related stress. A sympathetic manager offered her a less stressful role, which she accepted. Although praised for her customer interactions, she struggled with efficiency and was placed on an action plan to boost her confidence and knowledge by year-end.

Despite positive feedback after refresher training, performance issues persisted, particularly regarding call speed and handling difficult customers. By April 2021, Ms Lynskey’s manager lost patience, initiated disciplinary action, and imposed a first-stage warning with a “success plan.” Following further sickness absences, an occupational health (OH) report in August recommended:

• Phased return to work
• Additional training
• Removal of targets until symptoms improved
• Recognition that she was likely disabled under the Equality Act

During her absence, discretionary sick pay was stopped without proper cause, prompting a grievance and reinstatement of 13 weeks’ pay. Ms Lynskey remained unfit for work until resigning in May 2023, alleging constructive dismissal, and sex, age and disability discrimination and harassment.

Internal Resources

For further guidance on managing menopause at work, see our internal articles:

• Workplace Menopause Support
• Menopausal Women Rights at Work

Legal Findings

Disability Claims

1. Performance Rating

The tribunal found that rating Ms Lynskey as “requires improvement” was unfavourable treatment. Although Direct Line cited legitimate aims—maintaining high customer service—it failed to provide evidence linking pay decisions to those aims, or how its approach affected disabled staff.

2. Disciplinary Warning

The disciplinary warning contravened company policy, which required managers to consider underlying issues before formal action. The manager ignored Ms Lynskey’s menopausal condition and failed to refer her to OH.

3. Withdrawal of Discretionary Sick Pay

Stopping sick pay “without reasonable and proper cause” was held to be unfavourable treatment. The OH report confirmed Ms Lynskey was unfit for work, yet the company provided no medical evidence justifying the pay cut.

4. Reasonable Adjustments

While coaching and training were provided, additional adjustments should have included:

• Reducing performance targets
• Exploring roles without difficult customer interactions
• Abandoning disciplinary proceedings until symptoms improved

Constructive Dismissal

The tribunal accepted that the three incidents damaged the implied trust and confidence between the parties, amounting to repudiatory breaches. However, Ms Lynskey’s eight-month delay in resigning was deemed an affirmation of her contract, despite illness and union support.

Sex and Age Discrimination

Allegations that manager comments about her confidence were motivated by sex or age were rejected, as the tribunal found the remarks directly related to her role’s requirements.

Compensation Award

Ms Lynskey remained off work until securing new employment in 2023. The tribunal awarded:

• £30,000 for lost earnings due to delayed return to work
• £23,000 for injury to feelings (middle Vento band)
• £2,500 aggravated damages for the company’s oppressive delay in accepting her disability

Total compensation: £64,645.00 (including interest).

Comment

Direct Line initially supported Ms Lynskey by finding a less stressful role and offering coaching. However, impatience from her line manager led to unfair performance management and disciplinary measures. Early OH consultation, obtaining GP insights, and following suggested adjustments could have prevented this outcome and ensured a fair process.