Can an employer deny payment for any outstanding leave where an employee is dismissed for gross misconduct?

In Witley and District Men's Club v Mackay [2001] IRLR 595 EAT, the Employment Appeal Tribunal ruled that a contractual term stating that no payment in lieu of outstanding leave would be made in the event of the employee's dismissal for gross misconduct was unenforceable. This ruling applies to the 5.6 weeks' annual statutory leave entitlement due under the Working Time Regulations 1998 (SI 1998/1833). Employers may, however, insert a clause into contracts stating that no payment in lieu of any outstanding contractual holiday entitlement over and above the statutory 5.6 weeks' minimum will be paid where the employee is dismissed for gross misconduct.