There has been an ongoing dispute in employment law about whether or not workers on long term sick are entitled to holiday pay accrual for the periods they are off work.

The ECJ has now made its decision and it is not good news for employers. It held that employees continue to accrue statutory paid holiday during sick leave even if they are absent for the whole of the holiday year. It held that if they are unable to take their full holiday entitlement in the holiday year due to sickness, then they must be able to carry it over. It also said they must also be paid in lieu of carried over entitlement if they remain off sick until termination. Finally it said that National laws can (but are not obliged to) permit holiday to be taken during sick leave.

Read More: Stringer v HMRC