Firms will suffer from annual leave ruling, says CIPP

THE Solihull-based Chartered Institute of Payroll Professionals (CIPP) says that a ruling that workers who become ill when taking annual leave can reclaim additional paid time off later will create a burden for businesses.

The European Court of Justice (ECJ) ruling is binding on all European Union (EU) members including Britain and the judgment relates to the EU’s Working Time Directive.The Government has said it will apply the Court’s rulings from October.

Karen Thomson, associate director of policy, research and strategic visibility at the CIPP, said: “This is yet another case where the interaction of annual leave and sick leave is the issue. The issue of taking holiday whilst on sick leave and sick leave whilst on holiday are still unresolved under the Working Time Regulations. 

“The CIPP is disappointed to see that once again the EU feels it necessary to legislate for sickness during holidays. Whether an employer allows an employee to reclaim holiday if sick during their leave is a matter to be dealt with between the employer and the employee, not the EU or the UK Government. 

“The CIPP would support the statement that this will be a further financial burden for UK businesses at a time when they can least afford it. For payroll and HR departments this will be more administration as employers will require some form of evidence that the employee was sick and then records would need to be amended accordingly.”