Holiday Accrues During Long-Term Sick Leave

The long awaited judgment of the European Court of Justice in Stringer and Others v HMRC (formerly the Ainsworth case) has just been given. The ECJ rules that, under the Working Time Directive, employees continue to accrue holiday throughout sick leave, irrespective of the length of such leave, and that they are entitled to payment in lieu of such leave (if it has not been possible to take it) on the termination of employment. The ECJ also allows member states to decide whether national legislation entitles an employee on sick leave to take paid annual leave during that sick leave.

The Judgment is clear on principle. However, it is short on detail and we think that the UK government will now have to amend the Working Time Regulations to clarify the necessary detail and give the Judgment practical application.