This issue has been subject to change in recent times, however the current position is that an employer is not obliged to pay holiday pay to an employee who is on long term sick leave.
Dishonesty is usually regarded as an act of gross misconduct which can lead to instant dismissal. You should carry out an investigation into the allegations and if satisfied that there is a disciplinary issue to be resolved, a disciplinary hearing should be arranged with the employee. The employee is entitled to be accompanied at the disciplinary meeting and should be informed of the right of appeal from any decision made by the company.
Employees are entitled to request to continue working beyond their normal retirement age. There are limited reasons to refuse such a request. For further information contact our Employment Department.
When an employee makes such a complaint, you should arrange to meet formally with the employee to discuss the complaint. You should carry out an investigation into the complaint and if appropriate the manager can be suspended on full pay whilst the investigation is carried out. As an employer you have a duty to protect the employee from any further acts of bullying or harassment and you must take steps to prevent it. After all investigations have been carried out, you will then be in a position to decide whether disciplinary action should be taken against the manager and whether dismissal is the appropriate sanction.

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