In Lock and another v British Gas Trading Ltd (No.2) [2016] IRLR 946 CA, the Court of Appeal held that the Employment Appeal Tribunal was correct to uphold an employment tribunal decision that the Working Time Regulations 1998 can be interpreted to require employers to include workers' results-based commission in the calculation of their holiday pay.
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.
David Malamatenios is a partner at Colman Coyle Solicitors. He rounds up the latest rulings.
In Lock and another v British Gas Trading Ltd (No.2) [2016] IRLR 316 EAT, the EAT held that the domestic Working Time Regulations 1998 are capable of being interpreted in a manner consistent with the requirements of EU law, which include the requirement to factor results-based commission payments into the calculation of 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.
In Lock v British Gas Trading Ltd [2014] 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.
HR and legal information and guidance relating to commission.