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

Greater Lancashire Hospital opened by Maya Ellis MP Sara Rajiah, Executive Director, Greater Lancashire Hospital and Bespoke Healthcare Group; Maya Ellis, Member of Parliament for Ribble Valley; Gwam Rajiah, Executive Chair, Greater Lancashire Hospital and Bespoke Healthcare Group.

Greater Lancashire Hospital opened by Maya Ellis MP

14 Jan 2026

2

University of Lancashire to host hands-on 3D printing showcase in Preston Engineering Innovation Centre at University of Lancashire new

University of Lancashire to host hands-on 3D printing showcase in Preston

14 Jan 2026

3

The Harris re-opens to record crowds as Wallace and Gromit draw over 150,000 visitors The Wallace and Gromit exhibition

The Harris re-opens to record crowds as Wallace and Gromit draw over 150,000 visitors

14 Jan 2026

4

Booths celebrates an award-winning record-breaking Christmas Booths store workers

Booths celebrates an award-winning record-breaking Christmas

14 Jan 2026

5

Eric Wright Facilities Management strengthens leadership team Ryan Pearce, Eric Wright Facilities Management Managing Director; Drew Hird Eric Wright Facilities Management, Technical Director; Roger Lancaster Eric Wright Facilities Management, Commercial Director

Eric Wright Facilities Management strengthens leadership team

13 Jan 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
January / February 2026 - LBV Issue 126 Magazine Launch Event
Porsche Preston1200x630
Networking
22 Jan 2026

January / February 2026 - LBV Issue 126 Magazine Launch Event

Porsche Preston, Preston, PR2 1QJ

08:30 - 10:30

CMI Level 5 Management and Leadership Course
UCLanAerialCampus.jpg.jpg
LBV Hub Seminars
21 Feb 2025 - 21 Feb 2026

CMI Level 5 Management and Leadership Course

Preston Campus, Preston , PR1 2HE

09:00 - 17:00

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

Preston Tech Connection: Tech For Better Humans
PTC January 26 banner.jpg.jpg
LBV Hub Networking
15 Jan 2026 - 15 Jan 2026

Preston Tech Connection: Tech For Better Humans

Society1, Coworking Space, Preston, PR1 3LT

18:00 - 19:30

Society1 Open Coworking Day
Open Day Square.png.png
LBV Hub Networking
15 Jan 2026 - 15 Jan 2026

Society1 Open Coworking Day

Society1, Coworking Space, Preston, PR1 3LT

09:00 - 17:00

The Business Network Central and East Lancashire
LBV Header (28).png.png
LBV Hub Networking
15 Jan 2026 - 15 Jan 2026

The Business Network Central and East Lancashire

Stanley House, Blackburn, BB2 7NP

11:30 - 14:15

Preston Freelancer Meet-Up: January
January Freelancer Meet-Up Square .png.png
LBV Hub Networking
20 Jan 2026 - 20 Jan 2026

Preston Freelancer Meet-Up: January

Society1, Coworking Space, Preston, PR1 3LT

10:00 - 12:00

Lancashire County Council – Meet the Buyer Drop in Event
Meet the Buyer event new
LBV Hub Networking
20 Jan 2026

Lancashire County Council – Meet the Buyer Drop in Event

County Hall, Pitt Street, Preston , PR1 8XJ

10:00 - 15:00

Employment Rights Act Update for Businesses: What Employers Need to Know for 2026
Employment Rights Act Update for Businesses.png.png
LBV Hub Webinar
27 Jan 2026 - 27 Jan 2026

Employment Rights Act Update for Businesses: What Employers Need to Know for 2026

Online via Zoom, Preston, PR5 6AW

09:30 - 10:30

The Marketing Meetup: Lancashire (January)
LBV Hub Networking
27 Jan 2026

The Marketing Meetup: Lancashire (January)

Six Connections, Slater Terrace, Burnley, BB11 4SA

18:00 - 20:00

Tech without the turmoil: How Finance Leaders can drive smarter digital decisions
MHA-BTI Logo_black (002).jpg.jpg
LBV Hub Networking
05 Mar 2026 - 27 Dec 2025

Tech without the turmoil: How Finance Leaders can drive smarter digital decisions

Farington Lodge Hotel, Stanifield Lane, Farington, Preston, PR25 4QR

08:00 - 10:00

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

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