My OperaGlasgow solicitors Holiday Pay for the Long Term Sick
Monday, August 9, 2010 6:24:55 PM
We are now in the middle of summer, and as holiday are now underway employers are keeping an eye on the grey area of holiday entitlements for employees that are currently off work sick.
Are you aware of the laws surrounding an employee with long term sickness, or an employee whose illness coincides with annual leave?
A recent case, Stringer and others v HM Revenue & Customs, clarified that under the Working Time Directive a worker on sick leave will continue to accrue annual leave, despite not working. Key points to note are:
An employee who is long-term sick will not lose their legal right to annual leave and will be permitted to benefit from the full statutory annual leave allowance.
Employees are entitled to take paid leave as their statutory holiday allowance continues to accumulate throughout any period of sick leave. This means that the worker will be able to take holidays even if they are on sick leave. Even if a worker has used up all of their sick pay entitlement they will still be permitted to be paid in respect of their leave entitlement.
This case highlights the fact that employers may eventually be required to pay workers for any leave entitlement the worker has accrued that has not yet been taken from the beginning of the workers absence. Employees can perhaps convey their claim as a deduction from wages claim under the Employment Rights Act.
However, this case suggests that employers might eventually have to pay workers for any leave entitlement which has accrued but not been taken going back to the beginning of a worker's absence. This is because workers can arguably bring their claim as a deduction from wages claim under the Employment Rights Act (which can go back further) rather than under Regulation 30 of the Working Time Regulations (which is limited to the leave year in question).
It has been suggested that employers might be able to defeat a deduction from wages claim by making the appropriate payment in lieu on termination of employment, relating only to the leave year in question. This issue is sure to be revisited by the courts in the near future and the situation remains unclear at present.
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