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In a recent case called Stringer v HM Revenue and Customs (HMRC), (formerly known as Ainsworth v Commissioners of Inland Revenue), former employees of HMRC brought claims against the department after requests for holiday and holiday pay were rejected due to long-term sick leave. One employee had requested annual leave during a period of sickness absence, which was refused. The others were dismissed following long-term sickness absence, and they claimed payment in lieu for outstanding holiday.

In January 2009, the European Court of Justice (ECJ) held that workers do accrue paid holiday for their entire duration of sick leave. and must be allowed to take it on their return to work, whenever that, or to be paid in lieu of it if their employment ends.

Although the ruling does not comply with the UK's existing Working Time Regulations, Legal experts have predicted the House of Lords will clarify that the ECJ ruling will overrule these Regulations.

The ECJ’s judgement has potentially serious financial and practical ramifications for employers, and a full review of sickness, holiday and maternity policies should be carried out as soon as possible.