Holiday Entitlement - Update

The House of Lords has now heard this case which had previously been referred to the European Court of Justice (ECJ) for a preliminary ruling. The ECJ ruled that workers cannot lose their holiday entitlement because they are off sick.

The statutory minimum holiday entitlement (under the Working Time Regulations) continues to accrue during periods of sickness absence, whether the worker is absent for the whole year or part of it. On the termination of a worker’s employment, the employer has to pay in lieu for any statutory minimum holiday entitlement for the current year which has been accrued, but not taken.

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