Call for review of European Court sick leave rulings

New rules on long-term sick leave are preventing businesses from employing new staff, according to the Federation of Small Businesses (FSB) as it released new survey figures today.

A European Court of Justice ruling in the Stringer v. HMRC case last year under the Working Time Directive means that statutory entitlement to paid annual leave will continue during long-term sick leave.  The FSB-ICM poll found that 71% of  the 1,400 respondents said the ruling will affect the way they employ. 

Of those, 38% said they will be more cautious about taking on new staff with health problems, 21%  will be less likely to take on new staff, and 17% will be more likely to dismiss staff on long-term sick leave.

A different ruling in the Pereda v. Madrid Movilidad SA case, also under the Working Time Directive, allows staff who fall sick during annual leave the right to carry over their holidays. Over half (54%) of the survey respondents said this will have a negative impact on their business.

The FSB is urging the European Commission to review and reverse these decisions. It is also calling for more advertisement of the Fit Note, which replaces the sick note.

John Walker, National Chairman, Federation of Small Businesses, said: 

"It is well known that small firms are the country's key employers and have done all they can to retain their employees and take on new staff throughout the recession. However, measures put in place by the European Court of Justice on sick leave are hampering small businesses' ability to do the job at hand and help tackle unemployment – which is at its highest for 17 years.

"Small businesses understand the need for good health in the workplace and are like a family, knowing and understanding the needs of their staff. But these FSB-ICM figures show that the changes in the law on sick leave are hampering employment opportunities to get long-term unemployed back into work. The European Commission must look at the measures on sick leave while reviewing the Working Time Directive and ensure these are rewritten so that sick leave is actually classed as sick leave so that small firms have the best conditions to take on more staff and help pull the economy back on to the road to recovery."