The House of Lords has ruled in the final judgment of Stringer v HMRC (also known as Ainsworth v HMRC) that employees who are denied holiday pay whilst on sick leave can claim for unauthorised deduction from wages at an Employment Tribunal.
Stringer v HRMC involved former employees of HMRC who brought claims after requests for holiday and holiday pay were rejected due to long-term sick leave. One employee had requested holiday leave during a period of sick leave, which was refused. Other employees were dismissed following long-term sickness leave and they claimed pay in lieu of holiday.
Earlier this year, the European Court of Justice ruled that employees do accrue paid holiday for their entire sick leave and must be allowed to take it on their return or be paid in lieu of holiday if their employment ends. This ruling, however, did not comply with the UK’s Working Time Regulations, which requires employees to use all holiday within a year or lose entitlement to holiday and/or pay in lieu. The case was then passed to the House of Lords who confirmed that the European Court of Justice ruling did override the Working Time Regulations.
The ruling also potentially extends the time limits for bringing an employment tribunal claim. Employment tribunal claims under the Working Time Regulations have a time limit of three months. Unlawful deduction claims can go back more than three months if the underpayments form part of a series.
If you have any queries regarding holiday pay entitlements and sick leave or claims for unlawful deduction of wages, please contact either Ashley Hunt or Vaishali Thakerar on 0116 212 1000 now.
