The ruling on Friday, 22 April 2005 overturns two earlier decisions relating to holiday pay. Previously the courts had decided that an employee on long-term sick leave continued to accrue holiday entitlement during that period. If they did not take that time off as holidays then they were entitled to holiday pay.
However the Court of Appeal decided that if an employee was absent because of illness then they could not be taking time off from work. Kevin James, employment partner at law firm Brabners Chaffe Street in Preston, comments: The court felt the Working Time Regulations were designed to ensure that workers took time off from work. Clearly that is not the case with an employee who is not actually at work and to interpret the regulations any other way is simply giving them a windfall payment.
This decision is extremely good news for employers who were facing the prospect of having to pay people when those employees had already exhausted their entitlement to sick pay. The previous decision was something of a nonsense and this practical and common sense approach is very welcome.
Workers on sick leave not entitled to holiday pay
A new Court of Appeal decision comes as welcome news to employers with staff on long-term sick leave.
