Cour de Cassation rules on impact of sick leave on holiday entitlement

On 13 September 2023, the Cour de Cassation (the French supreme court) delivered a number of rulings on the subject of paid leave. Up until now, the court has noted that certain provisions of the French Labour Code are not in line with European law, and has suggested legislative reform in this area. In this respect, the Versailles Administrative Court of Appeal recently ruled against the French State. The Cour de Cassation has finally set aside some of these provisions and applied EU law directly, thus reversing its position on the matter.

• Previously, an employee on sick leave could only acquire paid vacation entitlement after one month's actual work if the sick leave was due to an accident at work or a work-related illness.
  • From now on, an employee suffering from any kind of illness or accident acquires paid leave entitlement during the period of sick leave.
• In the past, the calculation of paid leave entitlement was limited to the first year of sick leave.
  • Now, in the event of absence due to an accident or work-related illness, the employee is entitled to paid leave covering the entire period of absence, regardless of its duration.
• Finally, the court has now determined that the starting point for the three year limitation period for a claim for a paid leave indemnity only begins to run if the employer has taken the legal measures necessary to enable the employee to effectively exercise their right to paid leave.
  • In practical terms, this means that, for example, a self-employed individual who only obtains recognition of an employment contract after ten years of work can therefore claim back-paid vacation pay for those ten years.