Newsflash: Holiday pay and commission

office-holiday-250What do we already know?

In our May 2015 Newsflash Holiday pay and commission we updated you that British Gas had lodged an appeal against the Tribunal’s decision in the case of Lock v British Gas (available here) which held that it is possible to insert into the Working Time Regulations 1998 additional wording such that holiday pay should include an element for commission.

What’s new?

The EAT has heard the appeal in Lock v British Gas and its decision is available here. The EAT confirms that sums earned by way of commission should be included in the calculation of holiday pay for the first four weeks of an employee’s holiday under Regulation 13 of the Working Time Regulations 1998 (WTR). The WTR can and should be interpreted to conform with the requirements of EU law. However, unfortunately the EAT’s decision does not provide any more certainty as to the practical application of the principles.

We’ll look more at what the EAT’s decision does (and doesn’t) say in our March Newsletter, so watch this space…