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18 June 2009
Issue: 7374 / Categories: Legal News , Employment
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No more worries for a week or 2

Employees have the right to accrue holiday while on sick leave, the House of Lords has ruled

Workers on sick leave are entitled to accrue statutory holiday pay, the law lords have ruled.

In HMRC v Stringer and others [2009] UKHL 31 five law lords interpreted the Working Time Directive 1998 to mean that workers on sick leave are also entitled to carry over unused holiday entitlement from one year to the next, and receive pay in lieu of any unused holiday entitlement at the end of their employment.

The unanimous House of Lords’ decision last week  is consistent with the European Court of Justice’s ruling on the case, in January.
Rachel Dineley, head of the diversity and discrimination unit at Beachcroft LLP, says the decision “may cost employers dearly”.

“Employers will need to assess the prospective liabilities they may have in respect of employees on long-term sick leave and the risks they now face of claims. This is far easier said than done,” she says. “The House of Lords has left a number of key questions unanswered. Only further case law will resolve some of these issues, which have been ongoing for several years already.”

Dineley warned against the temptation for some employers to resort to dismissing those on long-term sickness absence sooner rather than later, in order to limit those liabilities.

“There are very clear drawbacks in such an approach, not least being the requirements of the Disability Discrimination Act (and the proposed changes arising under the Equality Bill). Employers and insurers who provide income protection will wish to review the nature and extent of their cover in light of today’s decision.

“Whatever action they take, employers must be careful to follow the correct procedure or they could be faced with claims for unfair dismissal, disability discrimination and for loss of income protection benefits for their staff”.

Issue: 7374 / Categories: Legal News , Employment
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MOVERS & SHAKERS

Gateley Legal—Jack Kelly

Gateley Legal—Jack Kelly

Gateley Legal expands Midlands residential development team

Gibson Dunn—Richard Surtees

Gibson Dunn—Richard Surtees

Gibson Dunn adds employee benefits and executive compensation practice in London with partner Richard Surtees

Laytons ETL—Alec Cameron

Laytons ETL—Alec Cameron

Laytons ETL appoints new partner and head of intellectual property disputes

NEWS
A series of recent decisions has clarified important principles across property law, from perpetuities to lease renewals and public rights over land
Employers cannot rely on wellbeing services alone to defend workplace stress claims after a High Court decision awarding almost £1m to an overworked employee
Andy Burnham's brand of 'Manchesterism' could offer fresh thinking on legal aid and access to justice if it reaches Westminster, according to Roger Smith, NLJ columnist and former director of JUSTICE
The constitutional fallout from a change of prime minister, rather than the politics, is under scrutiny as questions arise over the limits of executive authority in a leadership transition
The legal profession is undergoing a fundamental shift from selling services to creating technology-enabled products, according to Professor Luke Mason, Head of School of Law at Regent's University London
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