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Employees entitled to Holiday Pay whilst on Long Term Sickleave

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The EAT has handed down its decision in Kigass Aero v Brown (and associated appeals), upholding the decision of the employment tribunal below (see bulletin dated 31/3/00).

On a proper construction of the Working Time Regulations 1988, employees continue to accrue entitlement to paid holiday whilst on long-term sickleave. Thus, even where their contractual sickpay and SSP entitlements have run out, they will be entitled to four weeks' paid holiday per annum during any long-term sickleave.

This decision means it may no longer be practical for employers to keep employees on long-term sickness absence (without pay), since they will be liable to pay four weeks' salary a year whilst the workers remain 'on the books'.

[Thanks to Navdeep Deol and Michael Stokes of Rowley Ashworth for sending me this transcript, which should be available soon on the EAT website]