Holiday Pay – A Positive Result for Companies?

Mr Plumb was a printer and was off on long term sick leave for four years following an accident. His employer was Duncan Print Group Limited (“DPG Ltd”).

Mr Plumb’s employment was terminated by DPG Ltd on the grounds of long term ill health. Mr Plumb brought a claim against DPG Ltd for sixty days accrued holiday which was from 2010, 2011 and 2012.

The employment tribunal did not accept his claim as it determined Mr Plumb was unable to show the reason he did not take his annual was due to his medical condition.

The Employment Appeal Tribunal overturned the first instance decision and relied on Article 7 of the Directive, and explained this Directive does not state there is a requirement by an individual who is on sick leave to take that annual leave during the leave year or to show they were unable by reason of sickness to take the leave.

The EAT ruled however that sick leave cannot be carried forward indefinitely and that it may be limited by a company to eighteen months from the end of the leave year in which it accrued.

Mr Plumb was therefore entitled to payment in lieu of annual leave for 2012 but not for 2010 and 2011, although permission to the Court of Appeal has been granted to both parties.

For further information or if you have any issues you would like to discuss, speak to Laura at Cinch Legal on: 01925 594495 or email: LauraP@thecinchgroup.com