NEWS & EVENTS

Employers in the region could be faced with an administrative and financial headache due to a decision by the European Court of Justice this week. The Court decided that employees are entitled to accrue holiday pay whilst they are on sick leave, and can carry that leave over to another year if they are too ill to take it.

The Court also decided that individuals may also be able to claim for annual leave payments dating back more than 10 years, to when the Working Time Directive was first introduced, if their sickness absence had meant they were unable to take holiday, and had not already claimed benefits from their employer.

The ruling which comes back to the House of Lords for a final hearing later this year, could leave employers faced with large bills and complex administration at a time when many are struggling to survive the economic downturn.

Marie Evans, Employment specialist at City based Roythornes said that the ruling was the last