Commission in Holiday Pay

In 2014, the European Court of Justice (case Lock v British Gas) ruled that Lock’s commission was directly linked to his job and that British Gas should have included Commission in Holiday Pay.  Since the ruling, a clause has been added to the European Working Time Regulations 1998.

Employment Lawyers are now currently advising employers to increase rates of holiday pay for several groups of employees.  Lock claimed that British Gas owed him additional holiday pay because had he been working, he would have been earning commission.

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In July 2016, the Employment Appeal Tribunal heard the Lock v British Gas case.  The EAT concluded the Working Time Regulations in UK law should reflect the European Regulations.  It is likely that when a ruling is finally integrated into UK law, claims will be backdated for up to 2 years.

Key points from Acas indicate what should be considered when calculating commission in holiday pay:

  • Guaranteed and non-guaranteed overtime should considered when calculating a worker’s statutory holiday pay
  • Commission – regular or irregular
  • Work-related travel

For guidance when calculating holiday pay, call 0330 400 5490 to speak to an experienced and knowledgeable Wurkplace consultant.

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