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Holiday Pay for Long Term Sick

The House of Lords has ruled that employees can accrue annual leave and other benefits when they are on long-term sick leave. In a long-awaited judgment, the law lords agreed with the previous decision of the European Court of Justice that workers on sick leave should be entitled to statutory holiday pay.

The ruling means that staff can carry over unused holiday entitlement from one holiday year to the next if they have not been able to take their days off because of sickness absence, and that they can receive payment in lieu of any unused entitlement at the end of their employment. It also means that staff can now make a claim for “unauthorised deduction of wages” if they don’t receive their entitlement.

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