A worker or employee on long term sick is entitled to be paid holiday entitlement under the Working Time Regulations 1998 even though they are absent from work.
Holiday entitlement continues to accrue even if an employee is absent due to sick leave. On return to work the employee is entitled to take the paid holiday which has accrued that they have not taken during the period of sickness absence.
If he or she is dismissed or leaves the employment before taking any accrued holiday he or she will be entitled to pay in lieu.
Case law has even established that when employment is terminated by the death of a worker/employee his or her right to be paid for accrued but untaken holiday under the Working Time Regulations does not expire but passes to the deceased’s estate.