EAT limits holiday that sick employees can carry over to four weeks per holiday year

Sood Enterprises v Healy: Mr Healy had been on 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.

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 the ‘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…

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