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Can Annual Leave be Converted Into Sick Leave?
Can your employees change annual leave to sick leave if they're feeling ill? In this specialist guide by our HR consultant team here in the UK, we explore how you can respond to employees to support their workplace wellbeing.
Imagine an employee gets sick on day two of a five-day holiday. Instead of enjoying their time off, they’re bedridden. When they return to work, they ask to reclassify those days as sick leave, recouping their annual leave to take at another time.
Many organisations don’t have clear policies addressing these situations, yet it’s a scenario that crops up more often than you might think. Here's how to progress in a legally complaint, fair way.
What happens if an employee is sick while on holiday?
If an employee falls ill while on annual leave, they must notify you if they want to reclassify any of that time as sick leave.
The employee then has two options. They can either:
Claim statutory sick pay for the days they were unwell (if they qualify for it)
Save their holiday and take it at a later date
An employee who is incapacitated before and during annual leave can have their time off re-categorised as sick leave.
The steps to take to resolve sick leave and annual leave
There are a number of things for you to keep in mind when faced with this situation.
If the employee didn’t notify you they were sick
If they didn’t follow the usual employee absence reporting procedure, consider their circumstances before making a decision. For example, they may have been seriously ill while abroad and unable to report their sickness. In this case, requiring evidence may be reasonable, but fairness and practicality should guide whether their leave is reclassified.
If you offer enhanced sick pay
If your organisation offers enhanced sick pay, it’s likely a contractual right. This means that if your contracts allow employees to reclassify annual leave as sick leave after the fact, and you want to remove this option, it would count as a contractual change, usually requiring consultation with staff.
Before making any changes, you should check existing contracts and policies to see if there are any restrictions or requirements they need to follow.
If the employee wasn't 'sick'
Being unable to go on holiday doesn’t automatically mean an employee qualifies for sick leave. If they broke their ankle before a skiing trip, for instance, they might not be able to travel but could still work, from home if not from the office.
You should assess each situation individually and ensure their decisions are reasonable, align with company policies, and are consistent with how similar cases have been handled in the past.
If the employee has unused leave
Remember, if employees are unable to take at least four weeks of their statutory leave due to sickness, they must be allowed to carry it over into the next 1.5 leave years.
If leave is reclassified
If an employee’s leave is reclassified as sick leave, their absence should still be recorded in line with your organisation’s absence management policies, such as using the Bradford Factor or other tracking methods.
In summary: Ensure you have clear policies to prevent confusion
Ultimately, you should remember annual leave is meant to give employees a chance to rest and recharge. If illness prevents them from doing so, it’s reasonable to allow them to take their holiday at a later date.
That said, having clear policies and applying them consistently is key to maintaining fairness, preventing misuse, and avoiding operational challenges.
Related Content
How to Manage Sickness Absence During an Ongoing HR Process
6 Key Ingredients of a Solid Sickness Absence Policy
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12 Reasons for Requesting Time Off
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Specialist Sickness Absence Support for Employers
Sickness absence query? Speak to an expert
At WorkNest, we provide expert Employment Law and HR support to help employers navigate tricky situations like these. From tailored advice to drafting clear policies, we ensure you’re handling sickness absence and annual leave fairly and consistently, preventing unnecessary disputes and disruption.
For specialist support through your specific situation, call our team on 0345 226 8393.
