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EU courts award employees additional holiday entitlement

The EU courts have today issued their advice on holiday entitlement for those on long-term sick leave and ruled against employers. In simple terms, employees who return to work after long-term sick leave will still be entitled to their full holiday allocation including those days accrued when they were absent from work. This clears up a situation which has been dragging on for some time and while trade unions have championed the cause there is much resentment from employers.

In line with the ruling it has also been revealed that those who do not return to work after a prolonged period of sick leave will also be entitled to holiday pay calculated at their date of leaving employment. This has the potential to increase the cost of business in the UK and the European market at a time when companies are trying to conserve their cash balances and cut costs to the bone.

While there is every chance that employer associations around Europe will appeal the ruling it would appear that various European directives give the ruling sufficient support and backing. Quite how the UK government will respond to this ruling remains to be seen but there is concern that EU Court rulings are yet again adding significant costs to businesses around Europe.

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