We have an employee who is signed off sick until mid-February. She has been with our organisation for some time and has contractual entitlement to 10 weeks’ sick pay at full rate and a further 10 weeks at half pay. She will be starting the period of half pay one week before she is due to return to work (unless she is signed off for a further period).

A colleague who is involved in finalising a personnel budget has asked whether, instead of being paid at half-pay, she could elect to take annual leave during this period, which would presumably be paid at the full rate.

Am I right in thinking that an employee can’t take annual leave if signed off sick? My understanding is that, if she has annual leave pending, she would need to take it after her return to work or be paid for it if she decides to leave. Is that correct?

There’s nothing in her contract or terms and conditions that say anything different. If she is still off sick at the point when her contractual sickpay comes to an end (i.e. at the end of the 10-week period of half pay), she will be on nil pay until/unless she returns to work. I assume that this is the point at which she could take any remaining annual leave. Would be grateful for your advice.