Following my blog at the end of last year, it has been confirmed that holiday pay must include commission. I reported on the case of British Gas v Lock in which the Attorney General had given his opinion that statutory holiday pay under the Working Time Regulations must include commission. This was subject to the decision of the ECJ as the Attorney General’s decision was not binding. That decision has now been made.
By taking holiday Mr Lock was financially worse off as he did not earn commission. He brought a claim before the Leicester Employment Tribunal seeking that lost pay and a reference was made to the ECJ. The decision has now confirmed that employers who reward their employees with a commission structure must ensure that they are not out of pocket when on annual leave.