Does holiday accrue on sick leave?
Sickness doesn't pause annual leave - it accrues throughout, carries forward, and can even be taken during the absence itself.
Yes - holiday keeps accruing while someone is off sick, however long the absence lasts. Sickness doesn't pause the 5.6-week statutory entitlement. If illness stopped them taking it, they can carry the leave forward for up to 18 months from the end of that leave year - and they can choose to take paid holiday during sick leave, which many people do because holiday pay beats Statutory Sick Pay.
Does holiday accrue during sick leave?
It does. Statutory annual leave accrues throughout the contract of employment - being off sick, on any kind of sick pay or none at all, makes no difference (gov.uk). Someone off for six months with a broken leg still banks their full 5.6 weeks that year. The same principle covers maternity and other family leave.
Can an employee take holiday while off sick?
Yes, and there's a very practical reason they might want to. Compare a week's money:
| That week is recorded as | They receive |
|---|---|
| Sickness (SSP only) | up to £123.25 - the lower of £123.25 or 80% of average weekly earnings |
| Annual leave | £600 - normal holiday pay |
For someone on long-term sickness who has exhausted company sick pay, converting a week to annual leave is often the difference between covering the mortgage and not. The choice must be theirs: an employer can't force someone to use holiday for sickness, and shouldn't nudge them into it. Since April 2026 SSP is payable from day one, which changes the short-absence maths - see the April 2026 SSP changes.
How does the 18-month carry-over work?
- Leave year runs 1 January to 31 December 2026.
- Priya is signed off from September and can't take her remaining 10 days.
- Those 10 days carry into 2027 and remain available until 30 June 2028 - 18 months from 31 December 2026.
- If she's still unable to take them by then, the carried leave can expire.
The wider carry-over picture - including the exception where an employer simply didn't give people a chance to take leave - is in carrying over annual leave.
What should employers do about long-term sickness and holiday?
- Keep the balance visible. Someone off for months should know what's accruing; a surprise 30-day balance on return helps nobody plan.
- Offer the choice, don't push it. Mention that booking holiday during sickness is an option, then leave the decision alone.
- Plan the return around it. Accrued leave can soften a phased return - but it isn't a substitute for one. See returning after mental-health absence.
- Settle it on exit. If the person doesn't return, accrued and carried leave is paid in the final pay - the leaver holiday calculator does the sum.
Does sickness during a booked holiday convert back?
If someone falls ill while on annual leave, they can ask for those days to be reclassified as sickness and their holiday returned to the balance - subject to your normal sickness reporting and evidence rules (self-certification covers the first 7 calendar days). It's a real entitlement, not a favour, though it's reasonable to expect the same notification you'd want on any other sick day.
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Balances that stay right through absence
CoDash accrues leave through sickness, applies carry-over rules and keeps fit notes on the same record - so nothing needs reconstructing later.