The Court of Appeal has held that the Employment Appeal Tribunal (EAT) was correct to uphold an employment tribunal decision 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.
The Employment Appeal Tribunal (EAT) has refused to interfere with the tribunal decision 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.
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).
In Peninsula Business Services Ltd v Sweeney the EAT holds that a sales executive's contract of employment incorporated the rules governing the employer's commission scheme, which specified that no payments of commission would be made if the employee was no longer in the employment at the date the commission would have been payable. Those rules were clearly set out in a written document that was specifically referred to as forming part of the contract, and which had been signed by the employee.
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