Holiday pay and commission

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The Leicester Employment Tribunal has now delivered its long awaited decision in Lock v British Gas on holiday pay and commission. The Tribunal has found that Mr Lock’s holiday pay should include an element of commission. His commission was not based on time worked but was outcome based on sales achieved.

Whilst it is a first instance decision and not binding it is likely that other Tribunals will follow suit given that the ECJ decision last year led the way for the outcome. Employers should therefore review their own holiday pay calculations to ensure that workers who take holiday are not losing out on commission during that period like Mr Lock.

Written by
Edward Aston
22nd April 2015