Holiday pay on commission ruling

The Court of Appeal has today ruled that individual sales-related commission should be included in the calculation of statutory holiday pay (4 weeks leave as derived from the Working Time Directive). This was decided in the case of Lock v British Gas Trading Ltd and upholds the Employment Appeal Tribunal decision and follows a similar decision in the case of Bear Scotland Ltd & Others v Fulton & Others on whether overtime payments should be included in the calculation of holiday pay.

It is unknown at this stage whether British Gas will appeal this decision, although highly likely, and further detailed guidance is to be expected.