News: Contract Law
Contract law: Employers unsure on long-term sick holiday pay issue
05 May 2009
Employers may need more contract law training as many are unsure of the rules on staff accruing holiday pay while on sick leave.
A judgement on the issue is due in six to eight weeks, following the House of Lords hearing on the Stringer vs HM Revenue and Customs (HMRC) case.
Former employees of the government department have brought claims against their ex-employer following their requests for holiday and holiday pay being rejected due to them taking long-term sick leave.
The outcome of the case will affect employers across the UK, which may lead to a need for training on contract law.
A decision from the House of Lords will deem whether a ruling made at the European Court of Justice (ECJ) applies in the UK, with the decision stating staff do accrue holiday pay while off sick.
However, legal experts are expecting the House of Lords to say that the ruling does not comply with the UK's working time directive but will overrule it.
The ECJ ruling allows staff to take their annual leave into the next holiday year, while the working time directive states staff have to use their allowance within a year or lose it.
