If a worker becomes ill during annual leave, employers will have to give them the extra time off after they have produced a sick note. The new legal regulations will be introduced in October and the Government estimates that they will cost employers more than £100 million annually.
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Ministers claim that the new regime must be introduced following several European legal judgments. However, the rules will add to growing concerns over the impact of regulation on British firms, which is thought to be undermining the economic recovery.
Ministers also admit that companies are also worried that the new rules are open to abuse as workers could falsely claim they were sick in order to claim more leave at a later date. David Cameron has repeatedly pledged to cut regulation but an official report published last week showed only minimal action to reduce the burden on business.
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