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Employment Matters

Holiday pay: should it include commission?
Employment Matters

Employment MattersIssue 2 | March 2016

Date
29 March 2016

Åsa Waring Legal Director

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).


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).

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