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Long Term Sickness & Holiday Pay
Following the HM Revenue & Customs v Stringer case, the House of Lords following referral to the European Court of Justice has determined that employees including those on long-term sick leave who have a claim for unpaid annual leave under the Working Time Regulations 1998 are entitled to bring claims before an employment tribunal not only under these Regulations 1998, but also under section 13 of the Employment Rights Act 1996, which provides employees with the right not to have unlawful deductions made from their salaries.
Two employees were involved, one on indefinite sick leave who asked to take a number of days' paid annual leave; the other was dismissed whilst on long-term sick leave. Since they had not taken their paid annual leave during the relevant leave year, they claimed payment in lieu of their accrued and untaken holidays.
The EJC concluded that the right to paid annual leave continues to accrue during sick leave and on termination of the employment relationship, an employee who has been on sick leave and unable to take paid annual leave is entitled to a payment in lieu.