Holiday pay

Workers have a statutory entitlement to 5.6 weeks' leave a year, during which they are entitled to be paid their normal pay. Recent case law developments have changed what may be regarded as "normal" and employers must now consider whether or not overtime and commission should be included in holiday pay.

In British Gas Trading Ltd v Lock and another, the latest important holiday pay case, the Court of Appeal has confirmed that employers should include a worker's commission in the calculation of his or her holiday pay. The Court of Appeal upheld the employment tribunal decision and agreed with the Employment Appeal Tribunal that the Working Time Regulations 1998 can be interpreted to require employers to include a worker's commission in the calculation of his or her holiday pay.

Listen to…

... our most recent podcast on holiday pay, discussing the Court of Appeal hearing in Lock and summarising where employers stand on holiday pay calculations.

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