The Government issued its BIS "Modern Workplaces Consultation" on 16 May 2011 . One of the topics covered is "Working Time Regulations". Consultation closes on 8 August 2011.
The introduction to this part of the consultation explains that the proposals "concern the interaction of annual leave with sick, maternity, adoption, parental, and paternity leave". Changes are necessary to ensure that UK law is consistent with the EU Working Time Directive, as interpreted by the European Court of Justice.
Under British rules the right to annual holiday is generally forfeited to the extent that it is not taken in any particular holiday year – it cannot be carried forward. Judgments of the EU Court of Justice show that in one situation this is unlawful in respect of the basic four weeks’ annual leave required by the Directive. This arises where the worker concerned was unable to take their basic four week annual leave entitlement due to sickness and did not have the opportunity to take it again within the same leave year. EU law requires that a worker in that position should be able to carry forward any untaken part of the basic four weeks’ leave to the next year. Current British law does not provide that right.
The main relevant proposal in the consultation document is therefore to change current British law accordingly. The change will be in respect only of the basic four weeks’ annual leave required by EU law and the employer will be able to insist that the unused leave is taken in the current leave year if there is still an opportunity to do so.
Further related changes will ensure:
- that if a worker falls sick during scheduled annual leave he will be able to reschedule the untaken part of the basic four weeks’ annual leave to a later date, including carrying it over if it is not possible to reschedule in the current leave year (the employer will be able to insist that leave that is unused in such circumstances should be taken in the current leave year if there is still an opportunity to do so);
- that a worker will be entitled to carry forward to the following year any annual leave (not just the basic four weeks) which is untaken due to absence on maternity, adoption, parental or paternity leave (including additional paternity leave and the proposed new flexible parental leave – see the separate post on this). The consultation document says that the Government is not proposing to extend this to other types of leave.
The Government says, apparently without irony, that "We are aware that businesses will have concerns around the abuse of these provisions". It expresses the belief (hope?) that "employers’ notification procedures for sickness absence" will prevent a worker on annual leave falsely claiming that he was sick so that he can take more annual leave at a later date. The consultation document specifically asks for comments on this aspect.
Consideration ("preliminary thinking") is also being given to other ideas – for example allowing employers to "buy out" annual leave in excess of the basic four week minimum required by the EU Directive or to require the worker to carry that excess over to the following year in any case of "overriding business need".
Importantly, the consultation document confirms that there is no change to the British Government’s opposition to EU proposals to remove the "opt-out" rule (the rule which enables workers to opt-out of the 48 hour average maximum working week limit).










