In fact it means that the law regarding holiday whilst on long term sick leave returns to the past position i.e.:

Workers on long term sick leave are not now entitled to holiday pay.

Background

Appeal Tribunals in the cases of Kigass Aero Components V. Brown and commissioners of Inland Revenue V. Ainsworth & Orrs, had ruled that workers who had exhausted their entitlements to statutory and contractual sick pay, were entitled to claim holiday pay.

This was based on the Working Time Regulations (1998) that states all workers are entitled to four weeks holiday pay.

However, in the latter case, the Court of Appeal has overturned this decision, on the basis that the intention of the Working Time Regulations is to ensure minimum standards for people who are actually working, for Health & Safety reasons and that being on long term sick leave logically implies the person is not working and therefore has been released from these working duties.

Their conclusion was therefore that workers on long term sick leave are not entitled to holiday pay.

If you would like to discuss the implications of this decision for your organisation or would like further information regarding sickness or holiday pay in general, please contact Mark Shortell on 01743 245 564 or email mark@hradvantage.co.uk

May 2005