EMPLOYMENT CASE LAW / HUMAN RESOURCE MANAGEMENT - The Accrual of Annual Leave whilst on Sick Leave
The Organisation of Working Time Act, 1997 was amended back in 2015 by the Workplace Relations Act to allow Employees to accrue annual leave whilst on a period of certified sick leave. This change brought the Organisation of Working Time Act into line with rulings of the Court of Justice of the EU.
Effective since the 1st August 2015, Employees accumulate statutory annual leave entitlement during a period of certified sick leave. Employees on long-term sick leave can retain annual leave they could not take due to illness for up to 15 months after the end of the year in which it is accrued.
This is regardless of whether the leave was accrued while on sick leave, or was accrued on the basis of time worked. Employees who leave their employment within 15 months of the end of the year in which this annual leave was accrued, are entitled to payment in lieu of this leave which was untaken due to illness. Annual leave does not accrue during periods of uncertified sick leave.
On termination of employment, payment in lieu of untaken statutory annual leave will apply to leave which was not taken as a result of illness in circumstances where the Employee leaves the employment within a period of 15 months following the end of the leave year during which the leave entitlement accrued. Payment in lieu of statutory annual leave may only be made in circumstances where the Employee is leaving the employment.
If the Employee is not leaving the employment, the statutory annual leave must be taken within the relevant time limits.
In calculating an entitlement, you need to consider what leave years are relevant. In any given case, the maximum amount of leave years that an Employer will need to consider are three leave years, which are as follows:
If you require assistance with regards to exactly what working time records you need to retain on file and the relevant retention periods, contact the team at Adare Human Resource Management – info@adarehrm.ie / 01 5613594.
Effective since the 1st August 2015, Employees accumulate statutory annual leave entitlement during a period of certified sick leave. Employees on long-term sick leave can retain annual leave they could not take due to illness for up to 15 months after the end of the year in which it is accrued.
This is regardless of whether the leave was accrued while on sick leave, or was accrued on the basis of time worked. Employees who leave their employment within 15 months of the end of the year in which this annual leave was accrued, are entitled to payment in lieu of this leave which was untaken due to illness. Annual leave does not accrue during periods of uncertified sick leave.
On termination of employment, payment in lieu of untaken statutory annual leave will apply to leave which was not taken as a result of illness in circumstances where the Employee leaves the employment within a period of 15 months following the end of the leave year during which the leave entitlement accrued. Payment in lieu of statutory annual leave may only be made in circumstances where the Employee is leaving the employment.
If the Employee is not leaving the employment, the statutory annual leave must be taken within the relevant time limits.
In calculating an entitlement, you need to consider what leave years are relevant. In any given case, the maximum amount of leave years that an Employer will need to consider are three leave years, which are as follows:
- The current leave year (the leave year in which the Employee returns to work),
- The last leave year (the leave year immediately before the current leave year), and
- The year before the last leave year (depending on the month the Employee returns).
If you require assistance with regards to exactly what working time records you need to retain on file and the relevant retention periods, contact the team at Adare Human Resource Management – info@adarehrm.ie / 01 5613594.
