While most members of your team take a break over the summer, sadly sickness does not. But what happens when holiday plans crossover with ill health? 

As always in HR, every case should be treated individually, but there are several key principles that can help organisations to apply policies consistently and manage sickness and holidays fairly.  

Most disputes arise because policies are unclear and managers are left to make judgement calls, which may lead to inconsistencies and employee relations issues. As we enter peak holiday season, it’s a good time to consider whether your current policies address:  

• How employees should report illness during annual leave, even when abroad 

• What evidence is reasonable to request 

• A consistent process for reinstating annual leave 

If your sick policy isn’t looking as healthy as it could, you can book a check-up with Omny Group for advice. To help you prepare for potential areas of policy overlap, we explore three common scenarios organisations often face.
 

Holiday vs sickness scenario 1: When illness strikes on holiday

An employee is diagnosed with a severe infection while on holiday and spends most of the trip recovering. When they return to work, they request that those days are reclassified as sick leave so they can take the annual leave at another time.  

Instinct may question whether this is fair, after all the employee was still away on holiday. However, under employment law, annual leave is intended to provide rest and relaxation. Therefore, if an employee is unable to enjoy their leave, they may be entitled to treat the period they were unwell as sick leave, providing they follow proper reporting procedure. This means they can get statutory sick pay (or enhanced occupational sick pay if relevant) for the time they were ill and keep the time they were sick to use as holiday at a later time. 

It’s important to avoid making assumptions about illness based on holiday destination or circumstances. If there is reason to suspect an employee was not genuinely sick, follow proper investigation protocol and request evidence as outlined in your sickness absence policy.

Holiday vs sickness scenario 2: An employee goes off sick before a planned holiday

An employee is certified unfit for work shortly before they are due to go on annual leave. Managers may assume that as the holiday had already been approved, it should continue as annual leave. In reality, sick leave and annual leave are separate entitlements. Employees who are unwell may choose not to use their holiday allowance for this period and remain on sick leave. Avoid making assumptions based on the legitimacy of absence simply because it occurs just before a holiday and investigate only where there are genuine grounds for concern.

Holiday vs sickness scenario 3: An employee wants to take holiday whilst signed off sick

An employee on long-term sick leave requests a week of holiday, whilst they remain signed off from work. This request often surprises employers, who might question how an individual may be unfit for work but well enough for a holiday. The reality is that these two events are not mutually exclusive. Someone recovering from stress, mental health issues or a physical condition may benefit from a restorative break. Employees can request annual leave while absent for sickness, and many choose to do so as holiday pay may be higher than sick pay.  

Employers should consider the employee’s reason for absence and whether the trip will support recovery or contradict medical advice. It is also worth remembering that employees continue to accrue statutory annual leave even when off sick.  

We’ve seen organisations caught off guard when an employee returns from months of absence with a substantial amount of untaken holiday that is still available. If someone has not been able to use their holiday because they have been on long-term sick leave i.e. a period exceeding four weeks, they can carry over four weeks’ unused holiday. Furthermore, with the introduction of the new Fair Work Agency, calculating holiday pay fairly will become an important area of compliance for payroll.  

Forward planning and regular reviews can prevent significant balances of annual leave becoming a business disruption. 

Key takeaways for employers this summer

• Require employees to follow normal absence reporting procedures, even when abroad  

• Have clear policies covering sickness during annual leave 

• Train managers on how to handle holiday and sickness crossover situations consistently 

• Avoid assumptions and assess each case on its own facts 

• Monitor holiday accrual for employees on long-term absence 

• Keep accurate records of decisions and supporting evidence 

• Strengthen other areas of policy crossover, such as travel disruption and emergency leave 

Need some support with sick or holiday leave?

Managing sickness and annual leave crossover cases are primarily about balancing legal compliance, operational needs and employee wellbeing. The organisations that manage these situations most effectively have clear policies, well-informed managers and a consistent approach. 

They also support the remaining team affected by absence, particularly if they are picking up additional work. For tips on this, read our post on what to do when employees are stranded abroad.  

At Omny Group, we partner with businesses to create exceptional workplaces that support their people to perform. This starts with transparency to ensure everyone knows where they stand.  

To discuss how we can help you build clear policies, get in touch with us today.