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The House of Lords has ruled in the case
of Stringer v HMRC that workers who are
refused holiday pay while on sick leave
can make a claim to an employment tribunal
for an unauthorised deduction from wages
(under the Employment Rights Act 1996).
This decision follows the ruling in
January, by the European Court of Justice
(ECJ), that employees do accrue paid
holiday for their entire sick leave, and
must be allowed to take it on their return
to work or be paid in lieu of their
entitlement if their employment ends. The
ECJ ruling did not comply with the UK’s
existing Working Time Regulations, which
require employees to use their four weeks
statutory leave in the holiday year or
lose it. The House of Lords has now ruled
that the ECJ decision does indeed apply in
the UK.
This is a complex area so please do get
in touch if you need any clarification.
Internet links:
BERR guidance and
Personnel Today article |