It was agreed that a new employee starting work in a full-time, permanent position on 1st July 2010 in public sector would be allowed to take unpaid leave for pre-arranged holiday for 10 days in July and 1 day in August.  Naturally it was assumed that leave would not be accrued during the period of unpaid leave, but would be accrued for the time worked.  However, it has been advised that no leave can be accrued for ANY calendar month which has not been fully worked (ie unpaid leave has been taken).  This would mean the employee accrues NO holiday entitlement for two months of work although has only taken 10 days of UNPAID leave.

Is this correct and legal, or does this contravene the Working Time Directive?