Lock decision to be appealed

We can confirm that the recent Employment Tribunal decision in the Lock v British Gas Trading Limited case has been appealed by British Gas.

As you will no doubt be aware, the case concerns the issue of including commission in the calculation of holiday pay. In March this year the Tribunal concluded that domestic legislation (the Working Time Regulations 1998 or WTR) should be read to make them compliant with EU law.

British Gas is appealing on two grounds:

1. That commission and non-guaranteed overtime are dealt with under different provisions, which use different language, and that the Tribunal incorrectly concluded that the Bear Scotland case, about overtime, was relevant to the outcome of Lock.

2. In any event, the Employment Appeal Tribunal (EAT) in Bear Scotland incorrectly concluded that our domestic legislation could be interpreted to give effect to EU law.

Although the Tribunal decision was unpopular with employers – because it held that commission should, in principle, be factored into the holiday pay calculation – we have been waiting for further guidance on the specific method of including commission when calculating holiday pay.

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.


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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.