Wed, 1 Jun 2011

Holiday ruling heard in EU

A decision on the length of time employees can carry over holiday entitlement, which they may have cancelled due to sickness, will be decided upon in the Court of Justice of the European Union (CJEU).

The case, KHS AG v Winifred Schulte began on 3 May and is the result of two separate cases being referred to the CJEU by two member states – the cases of Styler in the UK and Schultz-Hoff in Germany. The result of these cases found that paid annual leave under the Working Time Regulations (WTR) continued to accrue during sick leave, and that workers can opt to take that leave when off sick, subject to the employer’s rights to control when leave is taken.

A further CJEU decision ruled that workers who go on sick leave during a period that has been scheduled as annual leave for the purposes of the Working Time Directive should be allowed to reschedule their holidays, even if that means allowing leave to be carried forward into a subsequent holiday year, or if they leave being entitled to a payment for the holiday they lost.

This case will seek to enable member states to set limits on how far ahead holiday may be postponed, but keeping it within the confines of the CJEU ruling.

Owen Warnock, partner at international law firm Eversheds, said: ‘This latest case asks the CJEU for further guidance, particularly on how long holiday can accrue and be carried forward. Employers will certainly welcome it if the court puts some limits on the ability of long-term sick employees to accrue and carry forward holiday.’