Can employees use holidays as sick days?

There are many rules on dealing with annual leave and sickness absences. In some cases, an employee may request to use holidays as sick days. But what happens when the lines blur and employees want to use sick days for annual leave holidays?

The number of holidays offered per year and the rules on sick days vary between businesses. However, there are laws we must follow as well as best practices to ensure a more accurate view of authorised absences and/or sick leave.

In this guide, we’ll answer key questions like, 'can you use holiday pay for sick leave’? And 'does sick leave count as annual leave’?

We’ll cover these questions from an employer perspective; and outline the legal entitlements you need to provide.

Do sick days count as holidays?

Sick days don’t count as holidays and are treated as a separate kind of leave. However, a sick day can be taken as a holiday if the employee wishes to use it this way. Although it’s legal for an employee to request this, it’s at the company’s discretion whether they approve this request or not.

Employees are legally allowed to take time off work when they’re ill. For up to 7 calendar days (including weekends and bank holidays), they can self-certify and do not need to provide proof of sickness.

So, using holidays for sick days is beneficial for employees. Especially if they don’t have access to company sick pay; or have exceeded sick leave allowed per year. They can also avoid facing repercussions of unpaid time off this way.

Do you still get holiday pay when off sick?

Employees cannot receive holiday pay and sick pay at the same time. It must be one or the other. However, employees can request paid holiday whilst they’re off ill).

In most cases, employees may receive two types of sick pay:

Statutory Sick Pay (SSP)

Statutory Sick Pay (SSP) is the legal minimum amount all employers must offer. The rate typically updates annually. In the current year, this equates to £123.25 per week–up to 28 weeks (as of April 2026). In line with the Employment Rights Act 2025, SSP is payable from the very first qualifying day of sickness.

Contractual sick pay

Contractual sick pay is offered to 'top up’ the SSP rate. It’s not a legal requirement for employers to offer and is at a company’s discretion. Should you wish to offer contractual sick pay as a perk, you must set your own terms and conditions e.g. the employee having a set amount of service weeks or months to qualify.

Claiming back annual leave if sick – is this allowed?

Yes, an employee can claim back annual leave if they become sick during their holiday. The days they have off from the day they report it (inclusive) can be treated as sick leave, so that they can re-take annual leave at a later date. ACAS states that if they are entitled to it, the individual can get SSP for the time they were sick.

In order to move forward with this process, the employee must provide a formal fit note from their GP.

How much sick leave are employees allowed per year?

In the UK, there is no legal amount of sick leave days set out by law. However, organisations may typically set their own thresholds before there is a trigger for concern.

This falls to your own business and decisions. Some businesses might require a higher number, due to laborious or stressful workloads. According to the CIPD, there is an average of 9.4 days of sick leave – which could set as a good benchmark for your own organisation.

It’s also worth considering your industry, as well as every employee absence on an individual level. Every type of sick leave will be different. And so, you must avoid using sweeping actions to manage them.

If you don’t, you could indirectly action unfair dismissals. And this may result in damaged reputation, decreased retention, and expensive penalties.

Taking annual leave during sick leave

Employees can take annual leave during sick leave if:

• They can’t work but are physically able to take holiday leave

• They’re suffering from a mental health condition (where holiday leave would prove beneficial)

• They’re off for a long-term illness and holiday leave will aid recovery

• To top-up their income (in instances where they do not qualify for contractual sick pay or if SSP is too low)

Holiday leave can really benefit employees on long-term sick leave. But this must be requested by the employee themselves.

If you approve their request, offer holiday pay instead of sick pay, meaning the employee will receive their full pay. When the employee returns from annual leave, sick leave can continue if they’re still unable to work.

Do employees still accrue holidays whilst off sick?

Whilst employees are off sick, they still accrue holidays. Ensure you cover employee sick leave and holiday entitlements in their contracts. That way, employees have access to all relevant information.

If employees don’t use their accrued holidays because of their absence, they should be able to carry them over. This is however at the employer’s discretion. ACAS states that individuals can usually carry over a portion of their statutory holiday (5.6 weeks) if they haven't been able to take it due to long-term sick leave, maternity leave, or if their employer hasn't given them a reasonable opportunity to take their leave.

An employee is signed off sick but has holiday booked

In the event an employee is signed off sick, they will need to provide a sick note if they are off sick for more than 7 days (and it overlaps with holidays booked). It may be worth discussing with them if they’d like to move them. It may be that they are feeling well enough and want to return to work, then proceed with their holiday in order to receive holiday pay.

Be advised you cannot force an individual to take holiday when they’re off sick, but it’s at your discretion to approve requests during their sick leave.

How an Employee Assistance Programme can help with sick days and accrued holiday

If absences are rising and you’re stretched thin when it comes to your obligations for duty of care, an Employee Assistance Programme (EAP) can help. With HA | Wisdom Wellbeing, we offer day one intervention which can support your people on their first reported day of absence. They’ll receive the support they need to facilitate a faster return to work.

Our Wisdom Super Care EAP – also comes with a Virtual GP line for your people. This is hugely beneficial if someone is taking lots of sick leave and/or holidays to attend appointments. With our Virtual GP, the individual can beat NHS waiting times and even receive the prescriptions they need from our service. In addition to this, our HR advice line for managers can help with common HR queries – including those related to sickness and holidays.

Conclusion

Using holidays for sick leave should generally be discussed, as ideally, this is something employees would want to avoid having enough holiday for leisure or time off. Sick leave is intended for those who are ill, emergencies or poor mental health. It’s always best to be as accommodating as possible and do what’s best for the individual, as well as signpost support for those who may require sick leave.

FAQs

Can employees use annual leave as sick leave?

Yes. Employees can request to use holiday entitlement instead of taking a sick day. This can help them avoid unpaid absence if they don’t qualify for sick pay. However, approval is at the employer’s discretion, and you should apply decisions consistently to avoid claims of unfair treatment.

Can employees claim back annual leave if they become sick on holiday?

Yes. If an employee becomes ill during booked annual leave, they can request to have those days reclassified as sick leave. They must report the sickness promptly and provide a fit note for absences over seven days. They may also be entitled to SSP for the period they were unwell.

Do employees still accrue holiday while off sick?

Yes. Employees continue to accrue statutory holiday entitlement during sick leave. If they cannot take their holiday due to long‑term sickness, they may be able to carry over unused statutory leave, in line with ACAS guidance and your internal policies.

Can employees take annual leave during a period of sickness absence?

Yes. Employees can choose to take holiday while off sick—for example, to support mental health recovery or to top up income if SSP is too low. Employers cannot force holiday during sickness, but they can approve requests if the employee is well enough to take leave.

How should employers manage sickness and holiday overlap?

If an employee is signed off sick and has upcoming holiday booked, discuss whether they want to move the leave or proceed with it. You cannot require them to take holiday while unwell. Ensure your sickness reporting process, fit note requirements and holiday rules are clearly outlined in contracts and policies.

Related Entities

Statutory Sick Pay (SSP)

The legal minimum sick pay employers must provide. Payable from the first qualifying day of sickness under the Employment Rights Act 2025, up to 28 weeks.

Contractual Sick Pay

An enhanced sick pay scheme offered at the employer’s discretion. Terms must be clearly outlined in employment contracts, including eligibility and qualifying service.

Annual Leave Entitlement

The statutory 5.6 weeks’ paid holiday employees accrue each year, including during periods of sickness absence.

Fit Notes

Medical evidence required when an employee is off sick for more than seven calendar days. Needed to reclaim annual leave lost to sickness.

ACAS Guidance

Advisory rules on managing sickness absence, holiday accrual, and carry‑over rights, helping employers apply fair and consistent practices.

Long‑Term Sickness Absence

Absences lasting four weeks or more. Employees continue to accrue holiday and may request to take annual leave during this period.

Employee Assistance Programme (EAP)

A support service offering early intervention, mental health support, and practical guidance to help employees return to work sooner.

Virtual GP Services

Remote medical consultations that help employees access treatment quickly, reducing avoidable sickness absence and supporting wellbeing.