On 24th July the Court of Appeal has ruled that an employee who was off sick was entitled to be paid annual leave under the change to the Working Time Directive (Where holidays continue to accrue during sick leave.)
They also ruled that she was entitled to carry forward the annual leave she had accrued whilst off sick to the following year.
The employee who has since been dismissed from her role had been absent due to sickness for over a year. Her employers did not take unused annual leave into consideration as part of her compensation package.
This landmark ruling will have a major impact on employers. Not only could this prove very costly for employers, it could also affect business profitability & planning due to absent employees accruing large amounts of holidays that will have to be taken at some point in the future.
It is vital your business has procedures in place to deal with the aftermath of this new ruling. These decisions must be included when planning your business strategy.
Let us help your business today, contact us at Simple HR.