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'There is a clear danger of abuse. An employee could increase their holiday entitlement by claiming they were sick while on leave. It may be only the occasional bad penny who does this but the impact should not be underestimated.

'The question now is what level of evidence employers will require. They could ask people on holiday abroad to get a certificate from a local doctor, but many firms have self-certification for the first seven days so that could be hard to establish.'

Stephen Booth, of the think-tank Open Europe said: 'Yet again the ECJ has extended the EU's power over employment policy.

'This case illustrates what can happen when the UK signs up to EU laws without considering the potential consequences.

'This is the sixth or seventh time the EU's unelected judges have extended the reach of the original directive and increased costs for businesses.'

The Department for Business, Innovation and Skills declined to comment.