The case is closed- Holiday pay includes commission

March 1, 2017

We have been following the case of Lock v British Gas as it has been progressing through the courts. The case deals with the matter of holiday pay and commission. Any employees whose wages include an element of commission were being paid less when they took periods of annual leave, as they were unable to earn commission when they weren’t at work.

Mr Lock brought a case against British Gas claiming that this was not fair and that as a result he was being deterred from taking holidays, so that he did not incur a financial loss.  The court agreed with him and found that any holiday pay calculations will need to be based on both an employees’ basic pay and any commission that they earn.  The purpose of the Working Time Directive is to encourage workers to take adequate breaks from work.

British Gas appealed the decision, however, today their appeal was refused, the decision stands and the case is closed…for now. This is a case based on a European directive.  Will Brexit re-open this? We doubt it, but we will keep you posted!

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