Sick Pay Rules Update

This case, which was recently heard by the European Court of Justice (ECJ), is a continuation of the case previously known as Commissioners of Inland Revenue v Ainsworth. The House of Lords referred some questions to the ECJ for a preliminary ruling.

The ECJ ruled that workers cannot lose their holiday entitlement because they are off sick. This overturns the Court of Appeal decision in Ainsworth. The main points for employers from the ECJ case are that 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, and that on termination of 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.

Sick Pay Rules Update

This case, which was recently heard by the European Court of Justice (ECJ), is a continuation of the case previously known as Commissioners of Inland Revenue v Ainsworth. The House of Lords referred some questions to the ECJ for a preliminary ruling.

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