The specialist employment solicitors at Healys in London and Brighton look at an Employment Appeal Tribunal involving an employee's holiday entitlement.
In the case of Lyons v Mitie Security Ltd (MS Ltd), the Employment Appeal Tribunal (EAT) decided that workers who fail to follow their employer's fair and reasonable notice provisions can lose their right to take untaken leave.
Mr Lyons was a security officer who was only paid for the hours that he worked. His contract of employment required him to give four week's notice of annual leave.
Any request was to be made using the Company's standard holiday request form and submitted to his Line Manager for approval. It further stated that any applications made at shorter notice would be considered on their merits and would be subject to staffing requirements. However, three weeks prior to the end of his employer's holiday year, Mr Lyons requested that the remainder of his annual leave, 9 days, be paid.
Given that Mr Lyons had failed to provide the requisite four weeks notice, and that his contract prohibited any leave to be carried over, MS Ltd refused the request. MS Ltd claimed that they were unable to pay annual leave whilst Mr Lyons was still actively working. Mr Lyons resigned and claimed constructive unfair dismissal, citing the refusal to pay holiday.
The EAT confirmed that whilst a notice mechanism must not be operated by an employer in ‘unreasonable, arbitrary or capricious way so as to deny any entitlement lawfully requested', if operated correctly by both the employer and employee, this ‘could result…in the loss of the right at the end of the leave year in respect of leave not taken'.
The case has been referred back to the Employment Tribunal for a rehearing.
Whilst this case may enable an employer to reasonably refuse holiday requests when business needs are compromised, this approach and the ability to prevent an employee from wanting to carry over outstanding annual leave will not apply in situations when an employee is unable to take annual leave due to ill health or when on maternity leave.
For specialist advice on all aspects of employment law call Victoria Regan in Brighton on 01273 810 065 or email victoria.regan@healys.com . Alternatively, call Nicholas Evans, in our London office, on 020 7822 4141 or email him on nicholas.evans@healys.com
