Does Holiday Pay Accrue While Off Sick? A UK Guide to Your Rights

If you are off work due to illness, worrying about your holiday entitlement is probably the last thing on your mind. However, it is a common source of confusion for both employees and employers in the UK.


The short answer is yes. Under UK law, holiday pay continues to accrue while you are off sick.

This article explains exactly how it works, covering statutory rights, long-term sickness, and what to do if your employer gets it wrong.


Does Holiday Accrue During Sickness Absence?

Yes, employees continue to build up (accrue) their statutory annual leave entitlement while off work due to sickness or injury. This rule applies regardless of how long you are off sick, including periods of long-term absence.

This principle is established by the Working Time Regulations 1998 and has been reinforced by key case law, including the European Court of Justice ruling in Stringer v HMRC.


Statutory vs. Contractual Holiday

UK statutory annual leave is 5.6 weeks (28 days for a full-time worker). This is broken down into:

  • 4 weeks derived from EU law (with stricter protections).
  • 1.6 weeks derived from UK domestic law.

Employees on sick leave continue to accrue the full 5.6 weeks of statutory leave.

Employers may offer additional contractual leave beyond this. The rules for contractual leave may differ; employers may be able to limit or suspend accrual of purely contractual holiday during sickness, but only if the employment contract explicitly allows for this.


Does It Matter If I'm On Statutory Sick Pay (SSP)?

No. Holiday accrual does not depend on whether you are receiving Statutory Sick Pay (SSP), company sick pay, or even no pay at all. As long as your employment contract continues, your statutory holiday entitlement builds up as normal.


What About Long-Term Sick Leave?

If you are off sick for more than four weeks, this is generally considered long-term sick leave. The rules regarding accrual remain the same: you continue to accrue holiday.

However, long-term sickness introduces specific rules regarding carrying over unused holiday.


Carrying Over Holiday

If you are unable to take your holiday because you are off sick, you have the right to carry it over. The specific rules are:

  • The 4-week EU-derived leave: You can carry this forward for up to 18 months from the end of the holiday year in which it accrued.
  • The additional 1.6 weeks: This does not automatically carry over unless your employment contract or company policy allows it.

Can You Take Holiday While Off Sick?

Yes. You have the right to request to take your paid annual leave while you are on sick leave.


Why Would You Do This?

There are several reasons an employee might choose to do this:

  • To receive full holiday pay (which is often higher than SSP).
  • If a holiday or break is recommended as part of their recovery (particularly for mental health conditions like stress or anxiety).

What Are the Rules?

  • It is your choice: You cannot be forced by your employer to take annual leave while you are off sick.
  • Sick leave is paused: If you take holiday, your sick leave is paused for that period, and you receive holiday pay instead of sick pay. If you are still unwell after the holiday ends, your sick leave can resume.
  • Employer refusal: While you have the right to request it, your employer can refuse your request for legitimate operational reasons (e.g., staffing shortages). However, they cannot have a blanket policy banning holidays during sickness.

What If You Fall Sick While on Holiday?

If you become ill while on annual leave, you can notify your employer. In this scenario, you may be able to:

  1. Treat the time you were sick as sick leave (and receive SSP if eligible).
  2. Keep your holiday entitlement to use at a later date.

This requires you to follow your employer’s notification procedure for sickness absence.


What If My Employer Says I Don't Accrue Holiday?

If your employer refuses to allow you to accrue holiday while you are off sick, or refuses to let you carry it over, they are likely breaching the Working Time Regulations.

To protect your rights:

  1. Check your contract: Review what it says about holiday and sick pay.
  2. Keep records: Document your sick leave dates and any correspondence with your employer regarding holiday pay.
  3. Contact ACAS: The Advisory, Conciliation and Arbitration Service (ACAS) provides free and impartial advice to employees and employers.

Final Thoughts

UK employment law is clear: your right to paid holiday should not be diminished by genuine illness. Whether you are on a zero-hours contract or a permanent salary, statutory holiday accrual continues while you are off sick. If you are unsure about your specific situation, always refer to your employment contract and seek advice from ACAS or a legal professional.


If you want to know more about recovering unpaid holiday entitlement you can read our guide.