The European Court of Justice (ECJ) has ruled that workers on long-term sick leave are entitled to paid holidays. The decision clearly states that all workers are entitled to up to 4 weeks of holiday pay for each year they are on sick leave. The court based the findings on the premise that a worker must be compensated for annual leave not taken and should not lose his right to paid annual leave simply because he is unable to exercise that right. Now, an employee who has been on sick leave for a year will be due 4 weeks paid holidays when they return to work in addition to any future holidays. Also, a worker who loses their job while on sick leave must be paid a lump sum payment in lieu of accrued leave not taken during the period of sickness. This is in addition to any redundancy or termination payments and includes situations where an employee has quit.
Over the years there has been significant confusion in this area of the law so the clarification made as a result of the ECJ’s decision has been widely welcomed. However there is concern over the ruling as it comes at a time when many businesses are struggling financially and the judgement may leave some employers unable to fulfil their statutory obligations.
