In a significant step, an Employment Tribunal asked the European Court of Justice (ECJ) to clarify for it the relationship between holiday pay and commission pay when faced with a claim that commission pay should be included in the calculation of holiday pay. The ECJ agreed that it should and the Employment Tribunal has now inserted an extra subsection to the Working Time Regulations 1998 following this.
The Employment Tribunal was faced with deciding on whether or not the calculation of paid annual leave should take account of commission pay earned by an employee in the case of Lock v British Gas. Mr Lock, a sales consultant with British Gas, brought a claim to an Employment Tribunal for outstanding holiday pay money on the basis that the holiday money paid to him did not reflect what he would have earned from commission. Specifically, he argued he could not make any sales whilst on...
Do you have information to share with us?