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The Court of Appeal (CoA) has this week released judgment in the case of NHS Leeds v Larner, a decision that was keenly awaited in order to provide some clarity in the contentious area relating to the treatment of accrued holiday during sick leave.

As acknowledged by the CoA, the facts of the case were simple.  NHS Leeds employed Mrs Larner, who was absent on sick leave for the entire holiday year of 2009/10. During this period, Mrs Larner did not take any of her annual leave entitlement, nor did she request her employer carry it forward to the holiday year 2010/11. Early in this new holiday year, Mrs Larner was dismissed and NHS Leeds refused to pay her for annual leave accrued but untaken in the holiday year 2009/10.

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