What are the company obligations for employees with mental health issues?

I have an employee who suffers form depression and social anxiety. We recieived a note form his doctor which basically stated that his condition can prevent him from coming to work on time or at all on certain days. Although we are sympathetic to his needs, this is getting out of hand. Sometimes he dissapears for days. He makes doctor appointments during business hours all the time and I feel that we should be dictating his schedule, not the other way around. I'm wondering whether this can be classified as a disability and if it can't, what are our obligations to making reasonable accomodations for this employee.

Yes, it should be considered a disability, but what you should do is cut his hours. There's nothing wrong with that. Make sure you document everytime he calls, doesn't show up, what excuses he gives, etc.. Above all, keep all notes he gives you from the doctor.
It's very possible that you could call his doctor, letting him know about his behavior at work, and introduce the idea of the employee having a job coach. This person would help him get to work on time, tell him when it is reasonable to make appts with his doctor. Basically, they keep the employee working according to the employers standards as much as they can.
You could also suggest disability and see if he would qualify. Many people work fine with depression and social anxiety.
If you cut his hours, he may be forced to look for another job, and then you can give him a reference if needed.

I think your approach would have to fall under the Americans with Disabilities Act, and I think that depends on how large your organization is. You really need to consult a lawyer who specializes in employee/employer law.

Whatever you do, DO NOT CONTACT HIS DOCTOR unless you have a signed Release of Information from the employee. You would be subject to invasion of privacy laws, HIPAA violations, and in general, a whirl of sh*t. You should start with a lawyer, then, you may want to consider contacting your state's Department of Rehabilitative Services or Vocational Rehabilitation. They can be quite helpful.

Thanks for reminding me that not everyone on this site is an American. My bad.

Depends what country you live in and the laws that apply, whether state/provincial or federal/national. Contact your state/province or national/federal labour department for the laws that apply.

even though it does suck that they miss alot of wrk.but i heard that it is againt the law to fire them because it will be discriminating them because i guess you can say they are handicap....thatz what i heard,because i know ppl that work here that miss alot( i do mean alot) n they are still here because of their situation.

I admire your ability to get other opinions on this issue; most people are quite close minded about mind illnesses.

Please check the Americans with Disabilities Act (ADA) guidelines. The law states that you must make "reasonable" accommodations for a disabled person.

Thanks again for wanting to do the right thing