ESM1046 - Detailed guide to determining status: paid leave

Entitlement to paid leave by virtue of agreed contractual terms and conditions suggests an employment exists. It is normally inconsistent with a contract for services. The Courts took this view in Alpine (Double Glazing) Company Ltd v The Secretary of State for Social Services (1982) (unreported) in which it was held that the company's service engineers were employed.

Not all employees have a contractual entitlement to paid leave, particularly where the engagement is short-term and hence little significance can be attached to their absence in such circumstances.

Where entitlement to paid leave exists solely because of the rights a worker has under the Working Time Regulations, it is not a factor to be taken into account in determining status. Employed workers and some self-employed workers acquire rights to paid leave under the Regulations if they have been continuously engaged for 13 calendar weeks. However, if any changes were made to contracts giving rights to paid leave, these should be taken into account in the normal way.