06th September 2010
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- Here’s £10,000
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Holiday pay accrues whilst on long-term sick leave, EU rules
The ECJ has ruled that those on long-term sick leave continue to accrue their full statutory holiday entitlement, effectively making employers liable for extra salary to compensate for the holiday that they were prevented from taking during their illness.
The House of Lords will be given the task of ruling how this works in practice (e.g. paid annually or on termination) but employers will clearly be unhappy about the additional cost and some gymnastics will be required from HR departments to implement the ruling, including some amendments to contractual terms.
