Date:

Holiday pay and commission: Judgment delivered in Lock v British Gas

UNISON has today (25 March) reported via Twitter that the much anticipated judgment in the Lock v British Gas Trading Limited case has been delivered by the Leicester Employment Tribunal.

An extract from the reserved judgment hit Twitter feeds this morning. The brief extract from the judgment confirms that additional wording must be read into the Working Time Regulations 1998 (WTR) to bring the calculation of a week’s pay in line with the Working Time Directive.

As such, the WTR are to be interpreted as if the following paragraph were added to it:

“…a worker with normal working hours whose remuneration includes commission or similar payment shall be deemed to have remuneration which varies with the amount of work done for the purposes of section 221.”

The Court of Justice of the European Union (CJEU) had previously concluded that commission must be factored in when calculating holiday pay (see our previous blog ‘Holiday pay and commission a quick recap’). The judgment from the Employment Tribunal released today very much confirms that employers will need to account for commission when calculating holiday pay for workers going forward.

Read the full article on our website dedicated to employment law»

This information is intended as a general discussion surrounding the topics covered and is for guidance purposes only. It does not constitute legal advice and should not be regarded as a substitute for taking legal advice. DWF is not responsible for any activity undertaken based on this information.

DWF employment.law-ondemand.com

Employment law moves at a fast pace. Keeping up to date with changes and developments is a challenge for every HR professional, employment.law-ondemand.com helps you keep ahead of the game, plan for change and provides tools for solving those workplace dilemmas.

Visit employment.law-ondemand.com

Andrew Chamberlain

Partner - Head of Employment & Chair of the SDE

I am a Partner, the National Head of the Employment Team and the Chair of the Service Delivery Executive (SDE), which is focused on building better solutions for clients.