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Dismissed Worker entitled to previous year's holiday pay

David Reid
22nd Aug 2011

In the past few weeks, a new Employment Appeal Tribunal (EAT) judgement has determined that a worker who had been on sick leave for an entire leave year was entitled to a payment in respect of that previous year’s full annual holiday entitlement, when shortly after the start of the new leave year her employment was terminated.

 

In doing so the EAT has built upon the well known European Court of Justice case of Pereda, which held that, where a worker is prevented from enjoying the benefits of annual leave by a period of sickness, the worker has the option of designating an alternative period for taking the holiday, even if that means that the holiday has to be carried over to the following holiday year.

 

While this case may yet be further appealed and there are likely to be many more appeal decisions on both accrued holiday pay on termination and the carrying over of holidays, many of these decisions may become academic when the government amends the WTRs.

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