Tax & Accounting News

Fears Over New Sick Pay Ruling

29/09/2009

Employees have been given the right to claim back leave if they become sick during their time off, following a ruling by the European Court of Justice (ECJ).

The recent case concerned a council worker in Madrid who suffered an injury just before he was due to go on holiday, but his employers refused his request to move his leave period as a result.

The ECJ ruled that the worker should have been able to reallocate his leave, carrying it forward to the next holiday year if necessary.

The judges did not confirm what would happen to employees who had already started their holiday before falling sick, or what proof would be required when reporting their illness to employers, but business groups have expressed concern that the ruling could be exploited by some workers as a means to gain extra time off.

Katja Hall, director of HR policy at the Confederation of British Industry, said: “Many firms already take a common-sense and sympathetic approach. But allowing employees to re-classify their holiday as sick leave opens the door to abuse.”

Back in June, the House of Lords ruled that a group of customs workers could continue accruing holiday entitlements while on long-term sick leave.

The Chartered Institute of Personnel and Development has recommended that employers should clarify their absence management policies, so that they require workers to phone their manager on a regular basis if they are sick while on holiday to confirm that they are still ill and unable to return to work.