Using holidays for sick days

There are so many rules on dealing with annual leave and sickness absences.

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. (Even though there are set laws on annual and sickness leave). But can you go from sick leave to annual 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. But a sick day can be taken as a holiday if the employee wishes to use it this way.

Employees are legally allowed to take time off work when they’re ill. They don’t need to provide proof (only if they’re off for less than seven days).

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

However, during this period, standard sick leave procedures still apply.

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. (Although, 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 £118.75 per week–up to 28 weeks.

This payment starts from the fourth day of sick leave, unless the employee has already received SSP in the last eight weeks.

Contractual sick pay

Contractual sick pay is offered to 'top up’ the SSP rate.

It’s not a legal requirement for employers. So, the amount and choice to provide it falls entirely on your discretion.

You can even set your own terms, to meet your business needs. For example, an employee may need a set amount of service weeks 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.

How much sick leave are employees allowed per year?

There is no legal amount of sick leave days set out in law.

This falls to your own business and decisions. Some businesses might require a higher number, due to laborious or stressful workloads.

Last year, CIPD reported the average absence rate of 5.9 days per year. So, this might be a good benchmark to follow for your own sick leave procedures.

It’s also worth considering 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.

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. 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, 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 the day they receive their fit note and ensure they receive the safeguarding they need. It can also help facilitate their return to work.

We also offer an HR advice line for managers with our Peak Performance programme that can help managers deal 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 in order to have 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.