A ruling which entitles employees on long-term sick leave to full holiday pay could have ‘hard-hitting’ effects on businesses, a Warwickshire solicitor has warned.
The European Court of Justice ordered that workers on sick leave for the whole of an annual leave year are entitled to a period of four weeks paid holiday, despite having not actually worked.
Also, workers who are on sick leave when their employment is terminated are also entitled to any holiday they would have otherwise accrued.
But Suki Harrar, of Wright Hassall in Leamington, says the decision is ‘very unfair’ on already hard-pressed businesses.
“This is extremely harsh on employers who will have already lost a member of staff for a year and will now receive an extra financial burden,” she said.
“The business is not receiving the benefits from the employee during their absence and is now being left with another costly expense.
“This is a common problem and companies in the Midlands which manage long-term sickness cases are going to be seriously impacted.
“For some employers, it may be a cost they quite simply cannot afford in the current climate.
“In general, companies are quite fair on this type of matter but this type of ruling forces them to review how they deal with contentious issues.”
The ruling means that an employee returning to work after a year’s absence is allowed four weeks paid holiday from the previous year along with holidays they are entitled to for the year ahead.
Also, if a worker quits or is made redundant while on sick leave, they will receive a lump sum payment in lieu of holiday time accrued but not taken.
Around 2.6 million people in the claim incapacity benefits, many of whom have been signed off work by their doctors. Sick leave is estimated to cost the economy £100 billion a year.
