Friday, 19 June 2009

Beware easing staff out after holiday leave case

The recent House of Lords decision in Stringer v HMRC means that employees who accrue holiday leave entitlement whilst absent for ill health reasons can claim payment in lieu of untaken holiday going back several years as unlawful deductions from wages.

Some HR managers have expressed opinions that this will lead them to manage out staff on long term ill health absence at an earlier stage than might otherwise have been the case.

This would be a dangerous plan. Employees who face such treatment may well have claims for compensation for unfair dimisssal and (in cases where they are disabled within the definition of the Disability Discrimination Act 1995) discrimination.

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