Holiday pay: should it include commission?

Posted on 09 December 2015 by Asa Waring. Source: Business Shapers

Holiday pay: should it include commission?

Another legal battle over whether English law requires employers to boost workers’ holiday pay to include commission payments has commenced in the Employment Appeal Tribunal (EAT).

The long-running case centres on Mr Lock, a former British Gas salesman, whose commission payments made up around 60 per cent of his remuneration. Back in 2012, he complained to an employment tribunal that he had suffered reduced income as a result of taking holiday. This was because he was unable to generate commission during his holiday and thus his earnings in the period following the holiday were affected. This, he said, was a breach of the Working Time Regulations (WTR).

The employment tribunal referred the case to the European Court of Justice (ECJ), who held that it would be contrary to the Working Time Directive to exclude commission that is directly linked to the work carried out from holiday pay, as to do so might deter a worker from taking their annual leave.

Read the full article here.