The House of Lords has now confirmed that workers on sick leave who are denied holiday pay can claim for unauthorised deduction from wages. The claim can be made to the Employment Tribunal under the Employment Rights Act 1996.

This decision follows a ruling by the European Court of Justice earlier this year. The court ruled that workers are entitled to the statutory minimum of four weeks holiday pay for each year they are on sick leave.

A worker on sick leave can be prevented from taking holiday if their terms of employment allow them to carry over annual leave to a subsequent leave year.

However holiday continues to accrue for the duration of this sick leave and they must be allowed to take it upon their return to work.

Therefore if a worker's employment terminates while on sick leave they are entitled to a lump sum payment in lieu of accrued holiday not taken, regardless of the fact that they have been on sick leave. This will be in addition to any redundancy or termination payment.

If you require any further advice or assistance please contact Sarah Stanyer or a member of the Litigation team at Wortley Byers on 01277 268318 or sstanyer@wortleybyers.co.uk.

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