The legal entitlement to accrue statutory annual leave while on certified sick leave started on 1 August 2015 for private sector employees.
An employee accrues annual leave while out on certified sick leave and can carry over accrued annual leave while on certified sick leave for a period of 15 months after the end of the annual leave year in which it arose where an employee cannot take the paid annual leave due to certified illness.
If an employee leaves employment within the period of 15 months after the relevant leave year the employee can be paid for the annual leave that accrued and was untaken due to illness.
It is an automatic right.
Employers need to update their sick leave policies and contracts of employment to reflect this legal change.
The right only applies to the statutory minimum annual leave entitlement.
This new statutory accrual of leave has an expiry date. The accrued annual leave is lost 15 months after the end of the annual leave year in which it arose. The statutory annual leave year is 1 April to 31 March.
The material in this article is for general information purposes only and does not constitute legal or taxation advice. Specific legal and taxation advice should be sought before acting. All information and taxation rules are subject to change without notice.
No liability whatsoever is accepted by M. McLoughlin & Co. for any action taken in reliance on the information in this article.