The House of Lords is expected to rule on the long-running, controversial case of Stringer v. HMRC regarding the interpretation of Regulations concerning sick leave and annual holiday for workers, brought forward once again after the European Court of Justice overruled the Court of Appeal’s decision in the case.
The question before the court is whether employees can accrue annual holidays and whether they can actually take such leave while on sickness absence. Present UK interpretation of the Regulations indicates otherwise – if workers are on sick leave, they cannot at the same time accrue annual holidays, and if they do not avail of annual holidays during that year, they lose those holidays and cannot carry them over to the next year.
The case was brought by four ex-employees of HMRC, one of whom had been denied annual leave while on sick leave. The remaining had been dismissed while on sick leave at a point where they had not claimed their annual leave for the year, and thereafter denied payment in lieu of such unused holidays, as they had been on sick leave at the time.
The ECJ, overturning the Employment Tribunal and the Court of Appeal’s decisions in favour of the employer, laid down the following:
- Regardless of any instances of sick leave being taken, employees continue to accumulate annual leave, which amounts to four weeks per year;
- This leave is to be available to them to take on their return to work;
- If employment is terminated, they are entitled to payment in lieu of unused holidays; and
- The additional holiday given by the Regulations must be dealt with by the employers, who also must manage holidays such as sick leave, absence or maternity leave, as are set out in the terms of the contract.
Thus, the ECJ interpretation allows employees to avail of sick leave as well as annual leave, and has made it possible for them to carry forward unused holidays and avail of them at any future point.
For anyone involved in human resources management, training and development, the Chartered Institute of Professional Development is the body to refer to. Make sure your organisation is up to date with employment relations developments with CIPD courses run by the trainers and consultants at Workplace Law who have practical experience in the workplace as well as sound legal knowledge.
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