Tuesday, February 23, 2010

Paid Statutory Holidays

A Chinese traditional medicine shop has lost its appeal against a tribunal judgment that saw an ex-employee awarded over £25,000 in lieu of unused holidays and meal allowances.

Beijing Ton Ren Tang (BTRT) runs a traditional Chinese medicine shop in London's Shaftesbury Avenue, employing a Ms. S P Wang in 2001 as a Chinese medicine professor.

She left in January 2008, by when she had accumulated 131.5 days of unused holiday, having only taken four days' holiday each year– on public holidays when the shop was closed.

Wang complained to a Tribunal and won her claim for unfair dismissal and unpaid holiday pay.

The employer, BTRT, appealed the ruling, arguing that she was not entitled to any pay in lieu of holidays not taken, except in the final year of her employment, as carry-over of holidays was not allowed.

The EAT ruled that Wang had a contractual right to the holiday pay and confirmed the award of £14,000 for unfair dismissal, £25,000 in lieu of holiday and meal allowances, £769 for two weeks' pay because the employer failed to give her a statement of the particulars of her employment. £39,778 in total.

Ainsworth and Stringer were two other cases where it was ruled that holiday pay accrued during periods of sickness should be paid upon termination of employment.

and Stringer were two other cases where it was ruled that holiday pay accrued during periods of sickness should be paid upon termination of employment.

As this is considered a contractual issue, the right to paid holidays is granted by statute, and claimants would have the right to go back six years to make a claim for unpaid holidays.

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