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Holiday Pay resolved…..for now

The Employment Appeal Tribunal has announced the result in Lock v British Gas.

Mr Lock was paid basic salary and results-based commission but only basic pay during leave.

An employment tribunal held that results-based commission must be included when calculating holiday pay and that it was possible to read words into the Working Time Regulations (1998) (“WTR”). British Gas appealed. A reference was made to the CJEU.

The Employment Appeals Tribunal dismissed the appeal stating that it is permissible – and indeed necessary – to imply words into the WTR to comply with EU law.

The right to paid leave is a pillar of EU social law from which there can be no derogation.

Mr Lock therefore succeeded in his argument that he is entitled to holiday pay which includes an element for the amount of commission he would normally receive when working.

This is likely only to apply to statutory holiday.

See the full judgment here


Holiday Pay resolved…..for now

Join the hundreds of businesses that trust Peach for their unrivalled legal and HR services.

Peach Law was born out of a desire to provide clients with more flexible specialist employment law and HR expertise without the traditional call centre approach and without the need for rigid and expensive law firms. You’ll only ever speak to the senior individuals working on your account. You’ll get the information you need, when you need it.

A refreshing blend of legal & HR expertise.

Arrange a callback