Holiday and sick leave – the latest

Paid holiday and sick leave guidance has been published by the government after two major court rulings under the Working Time Directive in 2009. Information for employers is available from Business link.

The two cases established that statutory entitlement to paid annual leave continues to accrue during sick leave, however long it lasts. An employee can take annual leave whilst on sick leave (for example to be paid if not entitled to sick pay, or it has run out).

If an employee falls sick just before pre-arrranged leave, or while away, they may take it as sick leave and retain the entitlement to take as holiday at a later date. They may be able to carry it forward to the next leave year. An employer should consider requiring evidence of sickness in line with normal sickness absence reporting and any eligibility criteria for company sickpay.