Holidays and Sick Leave

Good news for employees, not so good news for employers - the European Court of Justice (ECJ) has passed down its opinion in Stringer v HMRC (previously known as Ainsworth v HMRC that workers on long-term sick leave are entitled to paid holidays. Yesterday's ruling means that all workers are entitled to up to four weeks of holiday pay for each year they are on sick leave. The ECJ said: “A worker does not lose his right to paid annual leave which he has been unable to exercise because of sickness. He must be compensated for his annual leave not taken.”



A worker returning to work after a year’s sick leave will be entitled to four weeks paid holiday carried forward from the previous year in addition to any holidays they are entitled to for the year ahead. Also if an employee resigns or loses their job while on sick leave is entitled to a lump sum payment in lieu of holidays accrued but not taken while they were sick, in addition to any redundancy or termination payment. The ruling applies only to statutory minimum holiday entitlement.



It will now be up to The House of Lords to give the final judgement which will probably overturn the Court of Appeal's decision from April 2005 which at that time was that the right to paid holiday leave did not accrue during periods of sickness absence.