Carry over of holiday pay

June 9, 2017, By

In the recent case of King v The Sash Window Workshop, the advocate general considered whether a worker’s paid holiday entitlement carried over to subsequent holiday years if an employee has not taken the holiday due to the fact that the employer refuses to pay them. In this case, the advocate general considered that where a worker has been prevented from exercising his right to paid holiday, the right carries over until the employee has had the opportunity to exercise it. This may be right up until the termination of employment. This means that in these circumstances, the legal obligation on employers to make a payment in lieu for untaken holiday entitlement on termination of employment should cover the full period of employment until termination of employment, including where holiday is carried over due to the fact that the employee has been precluded from taking the holiday. It is noteworthy that the advocate general’s opinion is non-binding but is very often followed as it is considered to be extremely persuasive by the European Courts.