In Pereda v Madrid Movilidad SA [2009] IRLR 959 ECJ, the ECJ held that art.7(1) of the Working Time Directive must be interpreted as precluding national provisions or collective agreements that deny a worker who is on sick leave during a period of scheduled annual leave the right to take the annual leave at a later time, even if this is outside the holiday year in which the annual leave was accrued.
In HM Revenue and Customs v Stringer and others sub nom Commissioners of Inland Revenue v Ainsworth and others [2009] IRLR 677 HL, the House of Lords held that a claim for unpaid holiday due under the Working Time Regulations 1998 can be brought as an unlawful deductions from wages claim under ss.13 and 23 of the Employment Rights Act 1996.
In Schultz-Hoff v Deutsche Rentenversicherung Bund; Stringer and others v Her Majesty's Revenue and Customs Cases C-350/06 and C-520/06 ECJ, the ECJ has held that the Working Time Directive allows member states to prevent workers from taking annual leave during periods of sickness, provided that they are permitted to take it at some other time. If sickness prevents a worker from taking his or her annual leave entitlement, it must be carried over into the next leave year. Workers whose employment is terminated cannot have their payment in lieu of annual leave reduced on account of a period of sickness prior to the dismissal.
The Employment Appeal Tribunal has held that an employee who was sick during her ordinary maternity leave was not entitled to be paid contractual sick pay during that period.
In Secession Ltd t/a Freud v Bellingham EAT/0069/05, the Employment Appeal Tribunal holds that the tribunal was entitled to imply a term to the effect that an employee with no written contract had the right to be paid in full during periods of sickness absence.
Where a contract of employment does not specify a limit to the duration of sick pay, it does not continue indefinitely but only for a reasonable period, holds the EAT, in Howman & Son v Blyth. However in deciding what is a reasonable period, Tribunals should consider the limit specified in a national agreement in the relevant industry.