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Holiday Pay for long-term Sick Employees - Commissioners of Inland Revenue v Ainsworth

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The Court of Appeal has, today, held that the right to four weeks' statutory paid holiday under the Working Time Regulations 1998 does not continue to accrue whilst an employee is off on long-term sick-leave.

This overturns the EAT's controversial decision in Kigass Aero Components v Brown (2002).

The Court of Appeal also overturned the EAT's decision in List Design v Douglas (2002), which held that non-payment of statutory holiday entitlement amounts to a non-payment of wages (under Part II of the Employment Rights Act 1996) - the importance being that the Claimant can claim back from a number of years if the deductions are part of "a series of deductions or payments". The effect of overruling List Design is that Claimants can only claim under the Working Time Regulations 1998 in respect of the one, relevant holiday year (assuming the statutory three month time limit is met).

Commisioners for the Inland Revenue v Ainsworth

[Thanks to John Bowers QC of Littleton Chambers for telling me this judgment had been handed down]