In NHS Leeds v Larner  IRLR 825 CA, the Court of Appeal held that a worker on long-term sick leave was entitled to carry forward untaken paid annual leave. There was no legal requirement for her to submit a request to do so. On termination of her employment she was entitled to payment in lieu of the untaken leave that had been carried forward.
In Cavenagh v William Evans Ltd  IRLR 679 CA, the Court of Appeal held that an employer that elected to terminate a contract of employment by making explicit use of an express pay in lieu of notice clause could not avoid the obligation to make the payment in lieu of notice by relying on prior misconduct by the employee that was not noticed until after the dismissal.
In Neidel v Stadt Frankfurt am Main  IRLR 607 ECJ, the European Court of Justice held that a German law that required employees to use carried-over annual leave within nine months of the start of the new leave year was contrary to the Working Time Directive. Where a worker has been unable to use the carried-over leave due to sickness, the worker is entitled to payment in lieu of it when the employment ends, but only to the value of the minimum amount of leave required by the Directive.
A model letter to a retiring employee confirming final payments and requesting return of company property.
The Court of Appeal has held that an NHS worker who was absent for the whole leave year and who did not submit any requests for annual leave during her absence was entitled to holiday pay on the termination of her employment.
In KHS AG v Schulte  IRLR 156 ECJ, the ECJ held that limitation of the right of workers on long-term sick leave to accumulate paid annual leave is not contrary to the Working Time Directive.
HR and legal information and guidance relating to payments on termination.