In the recent Court of Appeal decision in Commissioners of Inland Revenue
v Ainsworth, it was held that the right to four weeks' statutory paid holiday
under the Working Time Regulations 1998 does not continue to accrue whilst
an employee is off work on long-term sick leave. This overturns the decision
laid down in Kigass Aero Components v Brown.

In it's decision, the Court of Appeal also overturned the EAT's decision in
List Design v Douglas which held that non-payment of statutory holiday entitlement
amounted to a non-payment of wages. The significant point to note is that the
Claimant was able to claim back for a number of years if the deductions formed
part of a "series of deductions or payments" (under Part II of the
Employment Rights Act 1996). The effect of overruling of the List Design case
is that now Claimants can only claim under the Working Time Regulations 1998
in respect of the one, relevant holiday year.

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