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Paid holiday rights given to long-term sick

Workers on long-term sick leave are entitled to accrue paid holidays, the European Court of Justice (ECJ) has ruled. The decision, applying across the European Union, confirms that all workers are entitled to up to 24 days (rising to 28 days in April 2009) annual paid leave as a minimum, even where they are on sick leave.

Although not explicitly stated in the Judgment it seems that workers returning from a period of sickenss absence in a new holiday year would be entitled to take holiday leave that accrued during he sick leave.

The court based the findings on the premise that a worker must be compensated for annual leave not taken and should not lose his right to paid annual leave simply because he is unable to exercise that right.

A worker is also entitled to a lump-sum payment for any holiday days not taken if they lose their job or quit while off on sick leave. This is in addition to any redundancy or termination payments.
 
The ECJ's decision has brought clarity to a topic that was previously unresolved. However there is concern that the ruling comes at a time when many businesses are struggling, leaving some employers unable to fulfill their statutory obligations.

The CBI criticized the decision as "a blow to firms trying to keep jobs alive during the recession'', said Katja Hall, the CBI's director of human resources policy..

"Businesses themselves also suffer when staff take sick leave, and we had hoped that a compromise could have been achieved over unused holiday time. Instead, at a time when the economy is struggling, this judgment will ensure that staff are away from the workplace for longer."

"And it will create a headache for HR departments, who will have to review their policies and contracts.''
The case will now return to the House of Lords in the UK for a final hearing, expected to take place later this year.

Susan Mayall, Employment solicitor at Pearson Hinchliffe Commercial Law said: "This could potentially be an expensive development for many employers. There will be the administrative task of managing the backlog of time and pay accrued. It also creates an added incentive to encourage staff who are already on long-term sick leave to prolong their absence in the knowledge that their employer will have to further subsidise them being away from their jobs to the tune of their 24 (soon to be 28) days leave per year".

2.6million people in the UK claim incapacity benefits, many of whom have jobs but have been signed off work by their doctors. Sick leave is estimated to cost the economy £100billion a year.

For more information or advice, please contact an employment solicitor.

Notes to Editors

Pearson Hinchliffe Commercial Law is a commercial law practice providing a range of legal services to business and commercial clients in Manchester, Oldham and across the North West. The firm's specialities include Company & Commercial, Employment Law, Commercial Litigation and Commercial Property matters.

As one of the leading law firms in the North of England, Pearson Hinchliffe’s mission is to be ‘the complete law firm’ providing the highest quality legal services to its clients. It does this by offering practical and cost effective, high quality legal advice for a wide range of clients.  Each client is catered for as an individual with their business and personal requirements taken into account which allows for a highly personalised service.

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