The European Court of Justice ruled in April 2010 that workers who take parental leave cannot, after the leave, be deprived of their annual leave entitlement accumulated during the year preceding the birth of their child. The judgment also deals with the rights of part-time and fixed-term workers.
In Lyons v Mitie Security Ltd EAT/0081/09, the EAT held that, in principle, the ability to take annual leave is not inalienable and can be lost if the worker does not comply with the notice requirements imposed by the Working Time Regulations 1998 and/or the worker's contract. However, the tribunal had erred in failing to analyse properly whether or not the particular notice requirements of the claimant's contract had been complied with, before deciding to dismiss his constructive dismissal and holiday pay claims.
In Pereda v Madrid Movilidad SA [2009] IRLR 959 ECJ, the ECJ held that art.7(1) of the Working Time Directive must be interpreted as precluding national provisions or collective agreements that deny a worker who is on sick leave during a period of scheduled annual leave the right to take the annual leave at a later time, even if this is outside the holiday year in which the annual leave was accrued.