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In march this year the Employment Appeals Tribunal has confirmed the position regarding the automatic carry over of leave for the long term sick in Sood Enterprises v Healy

Mr Healey took sick leave from June 2010 to July 2011 when he resigned due to ill-health. He claimed payment in lieu of accrued, but untaken holiday during 2010 and 2011.

Julie Quinn, Partner at law firm Nabbaro sumamrises the case saying “The EAT agreed with recent European and UK case law that an employee on long-term sick leave is allowed to automatically carry over the “basic allowance” of four weeks annual leave that is guaranteed under the European Directive, without the need to request it . However, it held that any “additional allowance” of 1.6 weeks annual leave granted under the Working Time Regulations cannot be carried over unless the parties have an agreement to do so. Such an agreement may be found in documents such as contracts of employment and company policies.

There was no such agreement between Mr Healy and his employer. He was therefore only entitled to carry over and claim payment for the “basic allowance” of four weeks per leave year, less any holiday taken prior to his period of sick leave.”

Point to consider

When calculating the number of carry over days or a payment in lieu of accrued but unused holiday in respect of an employee that is/has been on long-term sick leave, ensure that the correct number of days are carried over/paid for. The correct number/amount will depend on whether there is an agreement in place to carry over the “additional” 1.6 weeks’ annual leave.

More on holidays can be downloaded from Nabarro here.

Case: Sood Enterprises v Healy