European Court of Justice: Decision on Paid Leave in the Event of Sickness Absence

On 9 November 2023, the Court of Justice of the European Union ruled that Article 7 of Directive 2003/88 on certain aspects of the organisation of working time, in particular annual leave, does not preclude national rules or practices that limit the entitlement to paid annual leave once an employee has returned to work after a long period of incapacity.
Long periods of illness, even consecutive ones can result in a worker's absence, which defeats the purpose of the leave itself, namely to help the worker rest and benefit from a period of relaxation.
Consequently, on his return, the employee has no absolute right to take it.

In Case C-271/22, an employer refused certain workers' requests to benefit from leave days previously accrued but not used because of their illness-related absences.

The French Court, by way of a reference for a preliminary ruling, asked the CJEU whether the employer's conduct - which did not infringe any internal rule - can nevertheless be said to be contrary to Article 7 of Directive 2003/88.

In its decision, the Court emphasises the purpose underlying the taking of the leave itself: to allow the worker to rest from performing the tasks assigned to him by his duties and benefit from a period of relaxation and recreation.

Thus, national legislation may provide for a carry-over period at the end of which the entitlement to leave lapses or limit the entitlement to paid annual leave once the employee has returned to work after a long period of inability to work.

Such provisions would allow the employer to avoid a high accumulation of employee absences due to illness and holidays, which is detrimental to the organisation of the company, and has no negative impact on the employee's rights if holidays are granted and taken, albeit at a different time.