accumulated untaken annual leave may not be reduced to reflect part time hours

 

The European Court of Justice (ECJ) has held that untaken leave which accrued when an employee worked full time cannot be reduced to reflect new part time hours. In Austria civil servants who changed their number of working hours had their untaken annual leave allowance adjusted proportionately, even though it had accrued during the period before their hours were changed. The ECJ agreed that this was in contravention of EU law and in particular the right of part-time workers not to be treated less favourably. The amount of leave should not differ if it is taken after the period in which it accrued, even though a worker's hours may have changed. Thus a worker who changes their hours from full time to part time on their return from parental leave, maternity leave, and now, following HMRC v Stringer, sick leave, would be entitled to all untaken holiday which accumulated while they were full time even if it is taken in the following holiday year.

The judgment throws another spanner in the works for the Working Time Regulations 1998 (WTR). The WTR provide for leave to be calculated by reference to a week's pay at the time the leave is taken, not when it was accrued. It is to be hoped that the review of the WTR promised by the last government will be carried out.

For further information on any of the issues covered in the above publication, you can contact a member of our Employment law team based in Southampton, Oxford and London or alternatively email us at employmentinfo@bllaw.co.uk.