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

Driving your business forward with electric Linz Pic 2

Driving your business forward with electric

30 Oct 2026

2

Lancashire businesses react to Autumn Budget UK Parliament

Lancashire businesses react to Autumn Budget

30 Oct 2026

3

Council shake-up decision early next year County Hall Gates

Council shake-up decision early next year

29 Oct 2026

4

Mayoral authority pathway for Lancashire revealed County Hall in Lancashire

Mayoral authority pathway for Lancashire revealed

28 Oct 2026

5

Healey looks to deliver ‘breathing space’ Johnhealeyofficialcabinetportraitjuly2024cropped2

Healey looks to deliver ‘breathing space’

28 Oct 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
LBV131 November/December Magazine Networking Event
LBV131 Magazine Launch Social720No Text 19 Nov 2026

LBV131 November/December Magazine Networking Event

The Landmark, School Lane, Burnley, BB11 1UF

08:30 - 10:30

Lancashire Business Day 2026
LBD26 WW Logo720 27 Nov 2026

Lancashire Business Day 2026

Burnley Football Club, BB10 4BX

12:00 - 17:00

Sub36 Reunion & Networking
03 Dec 2026

Sub36 Reunion & Networking

Burnley Football Club, BB10 4BX

15:00 - 17:00

Lancashire Net Zero Conference 2027
NZC27 Social 1200x800Generic 11 Feb 2027

Lancashire Net Zero Conference 2027

The Wellbeing Farm, Edgworth, Wheatsheaf Hill Farm, Plantation Road, BL7 0BY

09:30 - 02:00

Help to Grow: Management Course
Help To Grow 25 Sep 2026 - 15 Dec 2026

Help to Grow: Management Course

University of Lancashire, Preston, PR1 2HE

09:30 - 12:00

Chamber Breakfast Networking – November
Lancaster And Morecambe Logo 1 03 Nov 2026

Chamber Breakfast Networking – November

Porsche Centre South Lakes, Carnforth, LA6 1FW

08:30 - 10:30

Funding Unlocked
IMG_3058.jpeg.jpg 04 Nov 2026

Funding Unlocked

Accrington Stanley FC, Accrington , BB5 5BX

10:00 - 12:30

Clubhouse Business Network sponsored by Orca Finance - November 2026
Club House Padel 05 Nov 2026

Clubhouse Business Network sponsored by Orca Finance - November 2026

Clubhouse, Blackburn, BB1 3NT

14:00 - 16:00

Napthens' Cumbria Clay Shoot - for Penny Conservation Charity
N123_1200x400px_Title&Subtitle (1).png.png 12 Nov 2026

Napthens' Cumbria Clay Shoot - for Penny Conservation Charity

Leighton Hall Estate Storrs Lane, Carnforth, LA5 9ST

09:00 - 16:00

The Business Network Central and East Lancashire
12 Nov 2026

The Business Network Central and East Lancashire

Longridge House, Preston, PR3 2TB

11:30 - 14:15

Lancaster District Business Support Expo
Logo.jpg.jpg 18 Nov 2026 - 18 Nov 2026

Lancaster District Business Support Expo

The Platform, Morecambe, LA4 4DB

09:00 - 13:00

Great Winter Pie & Pea Social
Logo.jpg.jpg 19 Nov 2026

Great Winter Pie & Pea Social

The Royal Hotel & Bar, Lancaster, LA1 1YD

17:30 - 20:00

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 LBV130 Online GraphicWebsite
Subscribe now

Weekly news bulletin