Holidays And Sickness Absence

In a decision which will prove costly for employers, the ECJ has finally issued its judgement in Stringer v HMRC regarding the accrual and payment of holidays during long term sickness absence.

The ECJ has decided that employees do accrue holidays during long-term sickness absence but there is no right to take the holidays until they come back to work, even where the absence covers a different holiday leave year. Similarly, upon termination of employment, employers should make a payment in lieu of leave accrued during the sickness absence. The employee does not have to work during the holiday year to be entitled to the leave. Therefore, if an employee has not been able to take holidays because of illness, they cannot be deprived of exercising their right to take their holidays, such right is not extinguished at the end of the leave year but should be carried over.