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Paid Leave for Sick Workers

11/08/2011

The Employment Appeal Tribunal recently handed down a decision in the case of NHS Leeds -v- Larner...

Where an employee is absent as a result of sickness for the whole of the pay year, they are still entitled to receive a payment in respect of entitlement to annual leave upon the termination of their employment.

This entitlement does not depend upon the worker submitting a request to take annual leave before the end of the relevant pay year.

In this case Mrs Larner was absent for the whole of the year 2009-2010 as a result of ill health. NHS Leeds subsequently decided to dismiss Mrs Larner on the grounds of incapability due to ill health. They initially refused to make any payments in respect of untaken annual leave as no formal request to take the leave had been received from Mrs Larner.

The EAT held that, as Mrs Larner had been unable to enjoy periods of relaxation and leisure during her ill health absence, she retained her right to take that leave or receive payment in lieu at the termination of her employment.

Interestingly, the Employment Appeal Tribunal went on to comment that the position may be different in the case of an employee who is not absent due to ill health but still fails to make any request for leave during the whole of the pay year. The justification for this being such an employee would have had an opportunity to exercise their right to annual leave.

KBL is able to assist your business to deal with employees who are absent due to long term ill health and also advise upon the potential liabilities placed upon your business in respect of annual leave.