Can anyone tell me whether employees on long term sickness absence and who are in receipt of income protection benefit remain legally entitled to holiday pay, and if so, whether this should be paid at their pre-disability salary or at the benefit value. Thank you.
Hi Vicky - it will depend on your scheme details, IME it's usually paid on top of IP at the normal basic salary rate, and would not normally affect the IP payments. I would recommend you speak with your broker to clarify, and also double check the employment contract.
Yes they still accrue however only required to accrue the legal minimum, this includes Bank Holidays as well. You can stop income protection for a period for them to take the holiday pay. Should be paid at their contracted rate of pay.