British Gas has been refused leave to appeal by the Supreme Court in the long-running case regarding the payment of commission during holiday.
Readers may recall the case that we have previously reported on of ‘British Gas -v- Lock’, it was a significant case for employers with regards to how holiday payments are made to employees. The case was previously heard at the Employment Tribunal, the Employment Appeals Tribunal and then the Court of Appeal, with each forum concluding that commission payments should form part of holiday payments.
The Supreme Court, which is the final court for appeal within the UK has now refused an application to appeal the decision, which finally brings this matter to a close. The overall outcome is that holiday pay must include compensation for any results-based commission that would ordinarily be earned by a worker.
Originally the Employment Tribunal sought confirmation from the European Court of Justice (ECJ) for clarification on whether or not it was a breach of the Working Time Directive or the Working Time Regulations 1998 to limit the calculation of a week’s pay for annual leave to basic pay and to exclude commission. The ECJ decision was that commission payments must be included in the calculation of holiday pay.
Overall, the Supreme Court’s decision to disallow a further appeal on this matter means that British Gas, the company at the centre of this case will have to compensate Mr Lock, the Claimant for his losses, and ultimately, many other employers who have been watching in the side lines may now have to stump up more money to their employees.
Some commentators on this long running case believe that Brexit could have an impact on this outcome as the Working Time Regulations, derive directly from the European Union. Watch this space!
Should you require any advice on holiday pay please do not hesitate to contact out legal team on 0161 478 3800 or on [email protected]