According to the Chartered Institute of Personnel & Development 17 million working days are lost to alcohol-related sickness absence each year, with a loss to the economy of £6.4 billion. On the back of these statistics the government’s recent “Know Your Limits” survey has reported that many workers in the UK are drinking well above the recommended healthy limit, with those in the media and IT being the biggest drinkers.

This is probably no great surprise when workers are concerned about job security in the current economic downturn. It is generally accepted that it is uncertainty and insecurity about jobs, rather than job losses themselves, that bring about stress. This highlights the need for employers to tackle the increase in workplace stress and be aware of its inherent risks. These can include not merely the difficulities caused an increase in sickness absence but, in extreme cases, liability in negligence for stress-related illness.

Communication is the key. Effective policies relating to alcohol misuse are key and these should make it clear that drinking to a level that impacts upon performance and behaviour is unacceptable and may lead to disciplinary action. Certain industries (such as those involving heavy machinery or driving) may want to take a “zero tolerance” approach to both alcohol and drugs – making it clear that being “under the influence” whilst at work will be regarded as gross misconduct. Aside from such policies however effective and honest communication about job security in the current economic climate is equally important.

The House of Lords has delivered its judgment in the long running case of HM Revenue & Customs v Stringer.

The case is notable for the involvement of the European Court of Justice which, at an earlier stage in the proceedings, decided that holiday pay does accrue during a workers absence on long term sick leave. The Lords have now further strengthened the protection to workers by deciding that claims for holiday pay may be brought as claims for “unlawful deductions from wages” as opposed to breach of contract. The implication of this is that unlawful deductions claims should be brought before an Employment Tribunal within 3 months of the last in a series of deductions, so allowing the claim to go back more than three months.

As a result of this case workers on long term sick leave will not only be able to claim any unpaid holiday that has accrued during their absence but also claim such pay for the whole period of such sick leave (which in some cases may well be years).

Unfortunately the Lords did not clarify issues arising from the European Court’s decision that remain unclear – for example whether or not an employer can prevent holiday pay during sick leave being carried over to another holiday year.