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01st August 2010

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Annual holiday accrues during sick leave

Stringer v HMRC

 

This long standing case has now resulted in a ruling from the House of Lords confirming that employees can claim under Working Time Regulations or for unlawful deduction of wages under the Employment Rights Act to claim for unpaid holiday accrued while on sick leave. This leads to the following best practice advice for employers:

  • Workers accrue four weeks’ holiday per year throughout any periods of sickness absence
  • Workers must be allowed to take this holiday on their return to work
  • Workers must be paid in lieu of this holiday if their employment terminate
  • Employers must decide how to deal with the additional holiday conferred by the WTR and any contractual holiday and expressly set this out in sickness, absence and/or maternity policies.
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