Pay in Lieu of Holiday Accrued During Sick leave

A recent tribunal case now offers some practical advice to Employers when dealing with accrued holidays during sick leave.  The case is Khan v Martin McColl and the practical guidance that can be taken from the tribunal case is:

  1. In order to bring a claim for accrued but unused holiday an employee has to have made a request to take holiday and that request has to be denied
  2. Employers should consider paying an employee in lieu of unused holiday accrued in the last holiday year to deprive them of holiday pay claims for previous holiday years.

In practical terms an employee is not entitled to pay in lieu for accrued holiday during sickness if they have not requested that leave.

For more help and guidance on Pay in Lieu and Holiday Entitlements email info@hrva.co.uk

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