Long-term sick ‘can claim holiday pay from employers’

Posted 14/06/2009

The Law Lords have ruled that employees can continue to claim holiday pay, if they are absent for long-term health reasons.

A former tax inspector had alleged that his previous employers did not give him his holiday pay when he was on sick leave.

While he initially won an employment tribunal over the case, the Court of Appeal later overturned the ruling, although the House of Lords has again voted in his favour.

The ruling also means that people who are unable to take annual leave if they are off work for health reasons can carry it over to the next year.

Employment law specialist Martin Warren believes that this could be highly costly for businesses, particularly as staff will now be able to make backdated pay claims.

“Many will be concerned that [this] could stretch their resources to breaking point,” he commented.

Mr Warren added that many businesses are already struggling with the costs associated with long term sick leave, as well as coping with the economic recession.