Sick leave rule change warning

By Napthens

17 Aug 2015

Website

An employment expert is warning that a recent tribunal case has clarified the rules surrounding whether annual leave which remains unused due to sickness absence can be carried over.

Claire Haworth, solicitor in the Employment team at law firm Napthens, reports that currently, many contracts of employment state that annual leave must be taken in the year in which it accrues. However, if an employee is absent due to sickness they will be entitled to take annual leave during their absence or carry it forward into the next holiday year.

Now a high profile Employment Appeal Tribunal (EAT) case has clarified the position regarding the accrual of annual leave during a period of long-term sickness absence.

The EAT decided that the law governing these rights, the Working Time Regulations 1998 does not require workers to demonstrate they physically can’t take annual leave – it is enough that they are on sick leave and choose not to take their annual leave in that period.

The EAT also decided that the right to carry forward leave will not be unlimited, and workers must take accrued leave within 18 months of the leave year in which it accrues.

Claire said: “Employers should note that employees are not required to prove they are unable to take annual leave while they are absent on sick leave. It is their choice as to when, or if, annual leave is taken.

“If an employee is absent on sick leave, their annual leave will continue to accrue, but will be lost if not taken within 18 months following the end of the leave year in which it accrued. “This limitation may be a welcome decision for employers, as it helps to cap the potential accrual of annual leave, and limits the potential cost to employers if, or when, the employment of an employee on long term sick leave terminates.”

Enjoyed this? Read more from Napthens

Latest news

1

Burnley chosen for second-ever digital and tech festival Leon Caverley Door4 Mark Edwards Seriun Cat Mawdsley Northern Reach Dave Walker and Liz Wilkinson Brandlifi

Burnley chosen for second-ever digital and tech festival

05 Mar 2026

2

CRC Evans accelerates global growth strategy Steven Mackay

CRC Evans accelerates global growth strategy

05 Mar 2026

3

Star Academies set to anchor £45m Blackburn town centre scheme The regeneration in Blackburn

Star Academies set to anchor £45m Blackburn town centre scheme

05 Mar 2026

4

Forbes buys specialist employment practice in growth move Pauline Wild, Nick Jones, Jonathan Holden, Dan Bickerstaffe,Simon Ost

Forbes buys specialist employment practice in growth move

04 Mar 2026

5

Commissioner brings Lancashire businesses together to strengthen the fight against business crime Clive Grunshaw

Commissioner brings Lancashire businesses together to strengthen the fight against business crime

04 Mar 2026

Background image for hub sign up block

LBV Hub

Leverage Lancashire Business View platforms

Post your news
Post your events
Post your offers
Build your network
Improve your SEO
Gain coverage in the magazine
Sign-up
Events
LBV127 March/April Magazine Networking Event
Jan/Feb Networking Event - Closer up
Networking
19 Mar 2026

LBV127 March/April Magazine Networking Event

Salmesbury Hall, Preston New Road, Lancashire, PR5 0UP

08:30 - 10:30

AI & Cybersecurity Summit
AI and Cybersecurity Logo
Summit
28 Apr 2026

AI & Cybersecurity Summit

Dunkenhalgh House , Blackburn Road, Clayton Le Moors, BB5 5JP

08:30 - 11:00

Sub36 Networking - Outdoor Elements
Sub36
Networking
29 Apr 2026

Sub36 Networking - Outdoor Elements

Outdoor Elements, Pump House Dean Wood, Trapp Lane, Burnley, BB12 7JD

09:00 - 11:00

LBV128 May/June Magazine Networking Event
Jan/Feb networking event - hands up image
Networking
14 May 2026

LBV128 May/June Magazine Networking Event

Lancashire

08:30 - 10:30

LBV129 July/August Magazine Networking Event
Nov/Dec Networking Event
Networking
16 Jul 2026

LBV129 July/August Magazine Networking Event

Lancashire

08:30 - 10:30

LBV130 September/October Magazine Networking Event
Jan/Feb Networking Event - Entrance
Networking
17 Sep 2026

LBV130 September/October Magazine Networking Event

Lancashire

08:30 - 10:30

LBV131 November/December Magazine Networking Event
Networking
19 Nov 2026

LBV131 November/December Magazine Networking Event

Lancashire

08:30 - 10:30

RISE - Lancashire's unique leadership programme for women
thumbnail_Emma Weston Illustration WENDY BOWERS RISE Illustrstion.jpg.jpg
LBV Hub Seminars
22 Oct 2025 - 18 Mar 2026

RISE - Lancashire's unique leadership programme for women

East Lancashire Chamber of Commerce, Clayton le Moors, BB5 5JR

09:30 - 15:30

Understanding AI
understanding AI image.png.png
LBV Hub Seminars
06 Mar 2026 - 06 Mar 2026

Understanding AI

Strawberry Fields Digital Hub, Chorley, PR7 1PS

09:30 - 12:00

Payroll Update 2026 Samlesbury Hall
payroll.jpg.jpg
LBV Hub Seminars
06 Mar 2026 - 06 Mar 2026

Payroll Update 2026 Samlesbury Hall

Samlesbury Hall, Preston, PR5 0UP

08:00 - 10:00

Preston College Brings Industry and Education Together for Green Skills Summit 2026
LBV Hub Seminars
06 Mar 2026

Preston College Brings Industry and Education Together for Green Skills Summit 2026

Brockholes Nature Reserve, Samlesbury, PR5 0AG

09:30 - 13:00

Women Growing Together in Lancashire
IWD Lancashire March 2026 Landscape Graphic Final
LBV Hub Networking
07 Mar 2026 - 07 Mar 2026

Women Growing Together in Lancashire

Dalvee Restaurant, Lancashire

10:00 - 14:00

Advertise with us

Reaching 50,000 members, our print, digital and event platforms offer a fantastic way to raise your business profile and help you grow.

Find out more LBV124 Online Graphic
Subscribe now

Weekly news bulletin