Questions and Answers
Sick pay and holiday pay
I've paid an employee statutory sick pay as he's been off for two weeks and it looks like it’s going to last a bit longer. However now he wants to take some of it as annual leave, because he's struggling to make ends meet on just his sick pay. Do I have to agree this as I have already run payroll, paid him and printed his payslip?
No, you are under no obligation to do what he’s asked. Employees have a right to request annual leave but you do not have to agree to the request. If an employee becomes sick during a period of annual leave, they have the right to have it converted to sickness rather than holiday; but not vice versa.
You might want to agree a request for leave for a period of time in the future though. This would solve your employee’s cash flow problems and mean that you aren’t faced with a large amount of leave to fit in when he returns.
If you would like to discuss this further, please feel free to contact your local TaxAssist Accountant.
Date published 5 Dec 2012
This article is intended to inform rather than advise and is based on legislation and practice at the time. Taxpayer’s circumstances do vary and if you feel that the information provided is beneficial it is important that you contact us before implementation. If you take, or do not take action as a result of reading this article, before receiving our written endorsement, we will accept no responsibility for any financial loss incurred.Choose the right accounting firm for you
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