In the long-running case of Stringer and others v HM Revenue and Customs, the House of Lords has confirmed the EAT decision in this case that employees on long-term sick leave continue to accrue holiday under the Working Time Regulations during their absence and can take their holiday entitlement while they are off sick.

The House of Lords also held that employees can recover holiday pay and any payment in lieu of holiday due on termination as an unlawful deduction from wages and are not limited to claiming under the WTR. This is important because claims for unlawful deductions have a more generous time limit than those under the WTR. Employees have three months from the last in a series of deductions to bring their claim for all deductions in the series. This means that employees who have been denied their right to be paid holiday pay during long-term sick leave may potentially be able to claim unpaid holiday pay going back more than three months, and even in respect of previous holiday years.