Employment Law Update - Holiday Pay during Sickness Absence

ACCRUAL OF HOLIDAY PAY DURING SICKNESS ABSENCE - (HMRC v STRINGER)

On Wednesday 10th June 2009 The House of Lords gave its judgment in the above case and held that during periods of sickness absence one can:

a).   accrue statutory holiday pay (in respect of the basic annual leave entitlement covered by WTR 1988)

b).   carry over unused holiday entitlement to the next year if not able to take as a result of the sickness absence

c).   receive pay in lieu of unused holiday entitlement upon termination of employment

The case was actually about whether payments due under WTR 1998 were covered by unauthorised deduction rules under the Employment Rights Act 1996 but the above issues fell to be determined as a pre requisite.

This decision is potentially costly for employers and yet another reason why they should effectively manage sickness absence.

Here is a link to the full text of the judgment: