A worked example setting how to calculate pay in lieu of holiday where an employee with normal working hours terminates employment.
A model contract clause on holiday entitlement and pay on termination.
The operation of the Working Time Regulations 1998 has caused some difficulties, most recently in defining what is meant by 'holiday' for those on long-term sickness absence.
In Chief Constable of Strathclyde Police v Lavery EAT/0098/04, the Employment Appeal Tribunal has held that an employee on long-term sick leave who had been on half pay in the 12-week period before taking a period of holiday was entitled to full pay and not half pay for a week's holiday.
In Commissioners of Inland Revenue v Ainsworth and others, the Court of Appeal holds that workers absent through long-term sick leave who have exhausted their entitlement to sick pay are not entitled to four weeks' holiday pay when they have done no work during the leave year.
This week's case round-up from Eversheds, covering holiday pay on long-term sickness absence.
HR and legal information and guidance relating to accrued salary and holiday pay.