In Lock v British Gas Trading Ltd  IRLR 648 ECJ, the ECJ ruled that art.7 of the Working Time Directive requires that notional commission payments should be included in a worker's pay to compensate for commission that he was prevented from earning while on annual leave.
On its return from the European Court of Justice (ECJ), the employment tribunal in this important case has read an extra subsection into the Working Time Regulations 1998 (SI 1998/1833) to comply with the Working Time Directive (2003/88/EC).
The European Court of Justice has held that a worker's commission payments must be included in the calculation of his or her holiday pay.
The Advocate General has taken the view that, where the remuneration received by a worker comprises both basic pay and commission calculated by reference to the sales that the worker gets from his or her own work, such commission should be included in the calculation of holiday pay.
A model contract clause on payment of commission.
A model contract clause on commission and discount rebates for sales people.
HR and legal information and guidance relating to commission payments.