An employee returns from a four-month sick leave and requests the balance of their paid leave. The payroll manager opens their software, hesitates over the number of days accrued during the absence, and then wonders if the carryover still applies. Since the law of April 22, 2024, this type of situation arises in most French companies.
Accrual of paid leave during sick leave: what changes in payroll
Before 2024, an employee on sick leave for a non-work-related illness did not accrue any days of leave. The DDADUE law of April 22, 2024, ended this rule. Now, each month of sick leave generates rights to paid leave, including for ordinary illness.
The rate of accrual differs depending on the origin of the leave. For a non-work-related illness or accident, the employee accumulates 2 working days per month, compared to 2.5 working days per month for a work-related leave. Over a full year of absence for a non-work-related illness, this results in a ceiling of 24 working days, or four weeks of leave.
The Court of Cassation clarified, in a ruling on January 21, 2026, that this ceiling of 24 days is assessed per reference period and not over the entire career. In practice, an employee absent for two consecutive reference periods accumulates their rights for each of them, without the ceiling of one year encroaching on the rights of the following year. For payroll managers, this clarification requires treating each reference period as a separate compartment.
The details of these obligations can be found, notably on paid leave according to B2Boost, which recalls the basics of the legal framework applicable to employers.
Carryover of unused paid leave: 15-month deadline and obligation to inform
The right to carry over applies to employees who could not take their leave due to a work stoppage. The law sets a 15-month carryover period from the notification by the employer. This period only starts if the employer has informed the employee, within the month following their return, of the number of available days and the deadline for using them.
If the employer does not notify anything, the 15-month period does not start. The days remain pending, creating a social liability that is difficult to resolve. In practice, this means that an employee who returns to work without having received this information retains their rights indefinitely, until effective notification.
Steps to be followed by the employer
- Within the month following the employee’s return, send a letter or written document specifying the exact number of leave days accrued during the absence and the deadline for taking them (15 months after this notification).
- Update the leave balance in the payroll software by separating the days accrued during the absence from the days accrued during actual work, to avoid any confusion during the final settlement.
- Archive proof of notification (acknowledgment of receipt, electronic signature, or hand delivery against receipt) in case of subsequent labor dispute.
Responses vary regarding the management of this deadline in small organizations, where the lack of a dedicated HR service complicates administrative follow-up.
Illness occurring during paid leave: the turnaround of 2025
Until 2025, an employee who fell ill during their vacation lost the corresponding leave days. The Court of Cassation made a major turnaround on September 10, 2025, under the pressure of a European injunction from June 2025. Now, an employee who is ill during their leave can obtain the carryover of the days coinciding with the leave, provided they notify their employer of the sick leave.
This rule aligns French law with the jurisprudence of the Court of Justice of the European Union, which considers that the purposes of annual leave (rest) and sick leave (recovery) are not interchangeable. An employee who submits a medical certificate during their vacation thus recovers the affected days.
What this implies for team planning
The employer must provide a carryover mechanism even during the peak summer period. In practice, this means being able to recalculate an employee’s leave balance during the period and offer them new dates within a reasonable timeframe. The projected schedule for departures can no longer be considered fixed once validated.
Calculation of paid leave compensation: one-tenth rule or salary maintenance
Two calculation methods coexist, and the employer must apply the one most favorable to the employee.
- The one-tenth rule consists of paying one-tenth of the total gross remuneration received during the reference period. This includes the base salary, activity-related bonuses, and overtime, but not reimbursements for business expenses.
- The salary maintenance method pays the employee the remuneration they would have received had they worked during the leave period. This is often more advantageous when the employee has recently received a raise or regularly works overtime.
- The calculation is done in working days (based on 2.5 days per month, or 30 days per year) unless a company agreement or collective agreement provides for a count in working days (2.08 days per month, or 25 days per year).
The comparison between the two methods must be made at each leave period, not just once a year. An employee whose variable remuneration fluctuates may benefit from one method or the other depending on the month considered.
The reference period generally runs from June 1 to May 31 of the following year, unless a different contractual provision applies. Any error regarding the reference period skews the entire calculation and may result in a salary adjustment over three years before the labor courts.
The changes in 2024 and 2025 have significantly increased the administrative burden of managing paid leave. For companies that have not yet updated their processes, the risk of disputes relates as much to the lack of employee information as to the calculation itself. Checking balances, documenting each notification, and systematically comparing the two compensation methods remains the foundation of compliant management.
