Understanding Holiday Pay and Long-Term Sickness
Understanding Holiday Pay and Long-Term Sickness
Holiday pay is the money you receive when you take annual leave from work. In the UK, almost all workers are legally entitled to paid holiday – this is known as statutory annual leave. The law currently gives full-time workers at least 5.6 weeks of paid holiday each year, which can include bank holidays. This entitlement is protected by the Working Time Regulations 1998.
Understanding how holiday pay works is especially important if you are off work due to long-term sickness. Long-term sickness usually means being absent from work for several weeks or months because of a serious health condition. During this time, you may be receiving Statutory Sick Pay (SSP) or contractual sick pay from your employer, depending on your contract.
A common question is whether you continue to build up (or "accrue") holiday entitlement while you are off sick for a long period. The answer is yes: under UK law, you continue to accrue your statutory holiday entitlement even when you are on sick leave. This means that your right to paid holiday is not lost just because you are unwell and away from work for an extended period.
You also have the right to take your accrued holiday during your sick leave if you wish. Alternatively, you can choose to carry it over to the next holiday year if you have been unable to take it because of your illness. If your employment ends while you are still off sick, your employer must pay you for any untaken statutory holiday you have built up.
It’s important to know the difference between sick leave and holiday leave, as taking one does not automatically cancel out the other. For more on how annual leave works in general, see Understanding Holiday Entitlement.
If you want to explore your broader rights around sickness absence – including Statutory Sick Pay, fit notes, and what your employer must do – read our guide on Sick Leave and Sick Pay: Your Rights and Entitlements in the UK. This will help you understand how your holiday pay rights fit within the wider framework of employment protections.
What Is Long-Term Sickness?
Long-term sickness absence is generally defined as being off work due to illness or injury for more than four consecutive weeks. In the UK, this can arise from a wide range of health issues, including physical illnesses, injuries, or mental health conditions such as depression or anxiety. Extended periods away from work can have significant implications for both employees and employers, especially when it comes to holiday pay entitlement.
To confirm and manage a period of long-term sickness, medical certification is essential. After the initial seven days of absence – when self-certification is usually sufficient – employees are typically required to provide a doctor’s note, often referred to as a fit note. Fit notes serve as official evidence of your inability to work and may also include recommendations for adjustments to help you return to work. You can learn more about the requirements and process in our section on Fit Notes and Doctor’s Notes, or consult the official Fit note: guidance for patients and employees – GOV.UK for comprehensive government advice.
For the first seven days of sickness, employees can usually self-certify their absence without a doctor’s note. This involves notifying your employer and, in many cases, completing a self-certification form. More on this process can be found in our guide to Self-Certification for Sickness, and if you need a template, see What Is a Sick Self-Certification Form? for practical resources.
Understanding what counts as long-term sickness and the correct certification process is crucial, as it directly impacts your rights to holiday pay and ensures you remain protected under UK employment law, including the Working Time Regulations 1998. If you are unsure about your situation, it’s always advisable to communicate clearly with your employer and keep accurate records of your absence and any medical documentation.
How Holiday Entitlement Works in the UK
How Holiday Entitlement Works in the UK
In the UK, almost all workers are entitled to a minimum amount of paid holiday each year, known as statutory annual leave. Under the Working Time Regulations 1998, the statutory minimum is 5.6 weeks’ paid holiday per year. For someone working a standard five-day week, this usually means 28 days’ paid holiday. This entitlement can include bank holidays, but employers are not legally required to give extra days off for them unless stated in your contract.
How Holiday Entitlement Accrues
Holiday entitlement is not simply granted in one lump sum at the start of the year. Instead, it accrues over time as you work. This means that if you start or leave a job partway through the holiday year, your entitlement is calculated on a pro-rata basis. For example, if you work half the year, you will be entitled to half of your annual leave. This applies whether you are a full-time, part-time, or casual worker.
Statutory vs Contractual Holiday Entitlement
While 5.6 weeks is the legal minimum, some employers offer more generous holiday allowances in your employment contract. This is known as contractual holiday entitlement. Your contract should make clear whether you receive only the statutory minimum or additional days. Employers cannot give you less than the statutory minimum, but they can include bank holidays within your total entitlement or offer more days at their discretion.
Sick Leave and Annual Leave: What’s the Difference?
Sick leave and annual leave serve different purposes. Sick leave is time off when you are unwell and unable to work, while annual leave is your right to paid time off for rest and leisure. Importantly, being off sick does not mean you lose your right to accrue holiday. Even if you are on long-term sick leave, you continue to build up statutory holiday entitlement as if you were working. This means you can take your accrued holiday when you return, or receive payment for untaken holiday if you leave your job. To understand more about how these types of leave interact, see our guide to Sick Leave vs Annual Leave.
If you want to explore your full rights and how much holiday you should receive in different situations, visit Your Guide to Holiday Entitlement and Paid Leave Rights in the UK for detailed, up-to-date information.
Your Holiday Pay Rights During Long-Term Sickness
Your Holiday Pay Rights During Long-Term Sickness
If you’re off work for a long period due to illness, it’s important to know that your rights to holiday pay and leave are protected under UK law. Here’s what you need to know about how long-term sickness affects your holiday entitlement, how your employer should handle your holiday pay, and what happens to any unused leave.
Accruing Holiday While on Sick Leave
Even if you’re absent from work due to long-term sickness, you continue to build up (accrue) your statutory annual leave. Under the Working Time Regulations 1998, all employees are entitled to a minimum of 5.6 weeks’ paid holiday each year. This entitlement does not stop when you are on sick leave, no matter how long your absence lasts.
Protection of Statutory Annual Leave
Your right to statutory annual leave is protected, even during prolonged periods of sickness. This means you can’t lose your holiday entitlement simply because you’ve been off sick. The law is clear that employers must not treat sick leave as a reason to reduce your holiday rights. For more detail on the legal framework safeguarding these rights, you can refer to the Employment Rights Act 1996.
Calculating Holiday Pay During Sickness Absence
When it comes to calculating holiday pay for time you were off sick, your employer should use your normal rate of pay, not statutory sick pay (SSP). If you take holiday while off sick, you should be paid your usual holiday pay. If your pay varies (for example, because you work shifts or get bonuses), your employer should calculate your holiday pay based on your average earnings over the previous 52 weeks.
What Happens to Unused Holiday Entitlement?
If you’ve been unable to take your statutory holiday because of long-term sickness, you don’t lose your entitlement at the end of the leave year. The law allows you to carry over any untaken statutory holiday into the next leave year. If your sickness continues, you can generally carry over up to 4 weeks of your statutory holiday entitlement for up to 18 months after the end of the leave year in which it was accrued. In some cases, if you remain off sick for an extended period, you may be able to carry over your unused holiday entitlement for more than 2 years, ensuring you don’t miss out due to illness.
Practical Advice for Employees
- Keep records: Maintain a record of your sickness absence and any holiday you have taken or requested.
- Communicate with your employer: Let your employer know if you wish to take holiday while on sick leave or if you want to carry over unused entitlement.
- Check your contract: Some employers offer more generous holiday rights than the legal minimum, so check your employment contract or staff handbook.
For further information on how to work out your holiday entitlement and pay, including practical examples and guidance on taking holiday, see Calculating and Taking Your Holiday.
Accruing Holiday While Off Sick
Accruing Holiday While Off Sick
If you are off work due to long-term sickness, you continue to build up (accrue) your statutory holiday entitlement under UK law. This means that even if you are absent for several months or longer, you do not lose your right to paid annual leave. The right to accrue holiday during sickness absence is protected by the Working Time Regulations 1998, which give most workers at least 5.6 weeks of paid holiday each year.
Importantly, your holiday entitlement keeps accruing whether you are receiving Statutory Sick Pay (SSP), contractual sick pay, or no sick pay at all. The law does not require you to be physically at work or to be paid your usual wages for your holiday entitlement to build up. This applies regardless of the length of your sickness absence.
Statutory vs Contractual Holiday Entitlement
Most workers are entitled to the statutory minimum holiday – currently 5.6 weeks per year. Some employers may offer extra holiday above this minimum as part of your contract (known as contractual holiday entitlement). While your statutory holiday continues to accrue during sickness absence, your contract may set different rules for any additional (contractual) holiday. For example, some contracts specify that extra days above the statutory minimum do not accrue during sick leave. Always check your employment contract or staff handbook for details about your contractual holiday entitlement.
Practical Points and Examples
- Example: If you are off sick for a whole year, you still accrue your full statutory holiday entitlement for that year. You can usually carry over any unused statutory holiday you could not take because of your sickness, although there are time limits for how long you can keep it.
- You do not have to return to work to use your accrued holiday – you can request to take paid holiday while still off sick, if you wish.
- If your employment ends while you are off sick, your employer must pay you for any accrued but untaken statutory holiday.
For more information on how your holiday entitlement is calculated and what you can do if you have not been able to take your leave, see Calculating and Taking Your Holiday.
Taking Holiday During or After Sickness Absence
Taking Holiday During or After Sickness Absence
If you are off work due to long-term sickness, UK law gives you important rights regarding your holiday entitlement. You are allowed to request and take your statutory annual leave even while you are still on sick leave. This means you can choose to use your holiday days during your sickness absence if you wish, and your employer must pay you your normal holiday pay rate for those days, not sick pay.
Your employer cannot force you to take holiday while you are off sick, but they do play a role in agreeing to holiday dates. As with any holiday request, you should follow your employer’s usual procedures for requesting time off. They can refuse a particular holiday date if there is a valid business reason, but they cannot prevent you from taking your statutory holiday altogether because you are on sick leave.
If you return to work after a period of long-term sickness, you may have built up (or "accrued") holiday entitlement during your absence. Under the Working Time Regulations 1998, you continue to accrue statutory annual leave while off sick. When you return, you can request to take this accrued holiday in the usual way, and your employer must honour your entitlement.
Sometimes, your sickness absence may mean you are unable to take all your accrued holiday within the current leave year. In these cases, UK law allows you to carry over up to four weeks of unused statutory holiday to the next leave year, as set out in the Working Time Regulations and supported by government guidance. This ensures you do not lose your holiday entitlement due to illness. For more details on how much holiday you can carry over and the process involved, see the official Holiday entitlement: Entitlement – GOV.UK resource.
If you leave your job while still on long-term sick leave, your employer must pay you for any statutory holiday you have accrued but not taken. This applies whether you resign or your employment ends for another reason.
For a broader overview of how holiday is calculated and taken, including practical examples and further legal context, you may find our guide on Calculating and Taking Your Holiday helpful.
Holiday Pay Calculation and Payment
Holiday Pay Calculation and Payment
When you are off work due to long-term sickness, your right to holiday pay is protected under UK law. Understanding how your holiday pay is calculated – and how it is paid during or after sickness absence – can help ensure you receive what you are entitled to.
How Is Holiday Pay Calculated?
Holiday pay is generally based on your usual pay rate. For most employees with fixed hours and pay, this means you should receive your normal weekly wage for each week of statutory holiday. Under the Working Time Regulations 1998, you are entitled to a minimum of 5.6 weeks’ paid holiday per year.
If you are on long-term sick leave, you continue to accrue holiday entitlement. You can choose to take holiday while on sick leave, or carry it over to a later date, even into the next holiday year if necessary.
Irregular Hours or Variable Pay
If your working hours or pay vary (for example, if you work shifts, overtime, or have zero-hours contracts), holiday pay is calculated differently. The law requires employers to look at your average weekly pay over the previous 52 weeks in which you were paid. This average should include regular overtime, commission, and any other regular payments. If you have not worked 52 weeks, the employer should use as many complete weeks as are available, up to 104 weeks.
For practical help, you can use the Holiday Pay Calculator to estimate your entitlement based on your working pattern and pay history.
Statutory Sick Pay and Its Impact
Statutory Sick Pay (SSP) is a separate payment from holiday pay. However, periods when you receive only SSP (or no pay at all) can affect the calculation of your average pay for holiday purposes. Weeks where you receive only SSP or no pay are excluded from the 52-week average calculation, and earlier paid weeks are counted instead. This ensures that your holiday pay reflects your normal earnings, not reduced sick pay.
For more on how SSP is worked out, see our guide to Calculating Your Statutory Sick Pay. You can also find detailed government guidance on Statutory Sick Pay (SSP): Overview – GOV.UK.
Further Information
If you want to understand more about your legal rights and how holiday pay fits within the wider context of employment benefits, visit our overview of Holiday Pay in the UK.
Employers must ensure you receive the correct holiday pay, whether you are returning from long-term sickness or leaving your job. If you believe you have not received the correct amount, you should raise the issue with your employer or seek legal advice.
Unused Holiday Entitlement at the End of Employment
When you leave your job, you have a legal right to be paid for any holiday entitlement you have accrued but not taken, even if you have been off work on long-term sick leave. This is set out in the Working Time Regulations 1998, which ensure that all workers are entitled to a minimum amount of paid annual leave each year. If you haven’t used all your statutory holiday entitlement by the time your employment ends, your employer must pay you for these unused days as part of your final pay.
This right applies whether you are leaving voluntarily, being made redundant, or your contract is ending for another reason. Importantly, if you have been on sick leave and unable to take your holiday, you do not lose this entitlement. UK law recognises that employees off sick may not have had the opportunity to take their holiday, so your unused statutory holiday continues to accrue during your absence. When your employment ends, your employer must pay you for any outstanding statutory holiday, even if you have been off sick for a long period.
Employers are required to calculate the amount owed based on your normal pay rate. For example, if you have 10 days of untaken statutory holiday when you leave, you should receive payment equivalent to 10 days’ normal pay. This applies whether you were able to take your holiday or not. If you receive variable pay, such as commission or overtime, your holiday pay should reflect your average earnings over the previous 52 weeks (or as far back as is available, up to 52 weeks).
It’s a good idea to discuss your holiday pay entitlement with your employer before your employment ends. This allows you to check how much holiday you have accrued and ensures there are no surprises in your final payslip. If you are unsure how your entitlement is calculated, or if you believe you have not received the correct payment, you can raise the issue with your employer or seek advice from a legal professional.
For more information about how holiday entitlement is handled when changing jobs, see Changing Jobs and Holiday Entitlement.
Employer Responsibilities and Employee Rights
When you are off work due to long-term sickness, both you and your employer have important rights and responsibilities regarding holiday pay. UK law protects your right to accrue and take annual leave even during extended periods of sickness absence. Here’s what you need to know about how employers must handle holiday pay, the adjustments they may need to make, and your rights as an employee.
Ensuring Correct Holiday Pay During Long-Term Sickness
Employers have a legal duty to ensure you receive the correct holiday pay, even if you are off sick for an extended period. Under the Working Time Regulations 1998, your statutory holiday entitlement continues to build up while you are on sick leave. This means you do not lose your right to paid holiday simply because you are not at work.
If you are unable to take your annual leave due to sickness, you can carry over up to four weeks of statutory holiday into the next leave year. Employers must allow you to take this carried-over leave when you return to work, or pay it as part of your final pay if your employment ends before you can take it. For more on employer obligations around holiday pay, see Your Employer’s Responsibilities.
Reasonable Adjustments for Long-Term Sickness or Disability
Employers are also required by the Equality Act 2010 to make reasonable adjustments if you have a long-term health condition or disability. This could include changes to your working hours, duties, or the way your holiday is managed, to help you return to work or to support you while you are off sick. Learn more about what counts as a reasonable adjustment and how employers should approach this in our guide to Employer Duty to Make Reasonable Adjustments.
Registering as Disabled at Work
If your illness meets the definition of a disability under the Equality Act, you may be entitled to further protections and adjustments at work. Registering as disabled can help ensure your employer is aware of their legal duties towards you, including around holiday pay and workplace support. For practical steps on how to do this, visit How to Register as Disabled at Work.
The Importance of Communication
Maintaining open communication between you and your employer is vital during long-term sickness absence. You should keep your employer informed about your condition and any changes in your ability to return to work or take annual leave. Likewise, your employer should keep you updated about your holiday entitlement, pay, and any adjustments being considered.
For official guidance on what both employers and employees should do during sick leave, including handling holiday pay and entitlements, refer to When an employee is off sick – Sick leave – Acas.
Understanding your rights and your employer’s responsibilities can help ensure you receive the holiday pay you are entitled to, and that any necessary adjustments are made to support your return to work. If you have concerns, consider seeking advice from your HR department or a legal advisor.
Related Topics and Further Resources
If you’re dealing with long-term sickness absence, it’s important to understand not just your holiday pay rights, but also the wider legal protections and resources available to you. Below, you’ll find links to related topics and further guidance to help you navigate your rights and responsibilities at work.
Statutory Sick Pay: Eligibility and Duration
If you’re off work due to illness, you may be entitled to Statutory Sick Pay (SSP). To find out if you qualify, including minimum earnings and employment status requirements, visit our page on Eligibility for Statutory Sick Pay. For details on how long SSP lasts, and what happens if your sickness absence continues beyond the standard period, see our guide to Statutory Sick Pay Duration and Extensions.
Managing Sickness and Holiday Overlap
Sometimes, sickness and holiday leave can overlap or cause confusion. For example, if you fall ill after your holiday request has been declined, you might wonder what to do next. Our resource on Calling in Sick on a Declined Holiday explains your rights and the correct procedures to follow in this situation. If you become unwell during the workday and need to leave early, you can read more about your options in Going Home Sick Halfway Through the Day.
Mental Health and Workplace Rights
Long-term sickness absence isn’t always physical; mental health conditions are just as important. Learn more about your legal protections, reasonable adjustments, and how to seek support by reading Mental Health and Work: Your Rights.
Employee Benefits and Support During Sickness
Sickness absence can affect your access to various employee benefits, such as workplace pensions, private health insurance, or company sick pay schemes. For a broader overview of what you may be entitled to, see our section on Employee Benefits. You may also want to explore how employers manage attendance and capability issues, including what support or adjustments they should offer – find out more in Managing Employee Attendance and Capability.
By exploring these topics, you’ll gain a clearer understanding of your rights and the support available during long-term sickness absence. If you have further questions, consider speaking to your employer’s HR department or seeking advice from an employment law specialist.
