It is being proposed that employees will have a legal right to claim back annual leave if they are sick while using their annual holiday holiday entitlement. It is expected that this change will only be applicable if a sick note is provided but the Daily Telegraph have estimated that this could cost UK businesses more than £100 million per year.
The change is also likely to apply to those employees who fall ill while on maternity or paternity leave.
Both the legal profession and businesses are claiming that in addition to the expected additional annual cost the changes are likely to be abused by false claims
Michael Slade, managing director of Bibby Consulting and Support, said that many companies would be 'frustrated' and 'disappointed' with the ruling given the Government's continuing pledge to reduce red tape for firms.
"It remains to be seen how much impact these changes will have on the number of employees claiming sickness during their holidays," he said. "SMEs will see this change as yet another burden that they can well do without, and one which appears to fly in the face of the Government's pledge to help business leaders."