Don’t push an employee toward disability leave

Q. We have an employee (an officer at the bank) who was out six months with a heart condition. He has had performance problems on and off since then. He was hospitalized again with pneumonia and returned looking very bad, but his doctor says he's fine to return to work.  We approached him about taking disability and SSI benefits, but he refuses. Now we face a morale issue because he constantly talks about his illness and his co-workers feel he isn't performing. If we terminate him, what is the best approach? —C.T., N.J.