The European Court of Justice (ECJ) have released their decision in relation to the cases of Stringer and others v HM Revenue and Customs (C-520/06) and Schultz-Hoff v Deutsche Rentenversicherung Bund (C-350/06) on the effect of long term sick leave on a worker's right to a minimum period of paid annual leave under Article 7 of the Working Time Directive.
The ECJ has stated that:
- workers will be entitled to a period of four weeks' paid annual leave, despite the fact that they are not actually at work;
- the right to accrued annual leave is not extinguished at the end of the worker's leave year even where the worker has been unable to take their accrued annual leave due to the fact that they have been on sick leave;
- the national courts will have to decide when the paid leave can be taken, for example either during the year of the sickness absence or if it should be carried over to another year. The important point is that workers are entitled to paid annual leave at some point; and
- if the employment is terminated while the worker is still on sick leave, they are entitled to pay in lieu of any remaining annual leave, even if they have been on sick leave for the whole of that particular leave year.
The decision will add considerably to any ongoing costs for employers arising out of long term sick leave.
We will update you further once the House of Lords have considered the ECJ's judgment.
The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.
