Q: I have to make an employee redundant. She has been on been on long-term sick leave since May 2010, has three years service, and our annual leave policy is 22 days plus all English bank holidays. Must I pay her for bank holidays while she has been off?
Feb 02 2011
Answered by: Peter Done Ask a question
There are three main issues here so I will start with the issue of redundancy. For redundancy to be fair, a consultation process has to take place with documented evidence of a fair selection process. You must ensure that there is a genuine reason for redundancy and that this does not relate to her illness as this could give rise to a claim for disability discrimination and unfair dismissal. However, if there is a genuine redundancy situation, a fair process is followed and alternatives to redundancy carefully considered, you can consult with her while she is off sick and still make her redundant. She has more than two years service so she will get statutory redundancy pay.
Holidays do accrue during sickness absence and the statutory minimum holiday is 28 days per year for a full time worker. You allow 22 days plus bank holidays, giving your staff 30 days. This means that for her to get her statutory entitlement, six bank holidays must be taken as well as 22 days leave. The law doesn’t allow you to pay her in lieu for her holidays but you can agree to let her take them whilst she is off sick if she wants to, or when she returns to work. If she leaves, she will be paid for holidays accrued but not taken. Holiday pay will normally equal contractual pay.
She is entitled to SSP for up to 28 weeks. 6 weeks before it runs out you should issue an SSP1 so she can claim for social security benefits.
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