Holiday pay update

28th October 2016

You may recall a few years ago my colleague did a blog on whether the holiday pay calculation should include commission. At that time, the European Courts of Justice confirmed that when calculating holiday pay, if they received commission, that commission should be included in the calculation for holiday pay. We have had various appeals arising from the decision in British Gas v Lock culminating in the Court of Appeal recently handing down its decision.

Like the EAT and the Employment Tribunal, the Court of Appeal confirmed that when calculating holiday pay, a worker is entitled to be paid an amount that reflects the commission they would have earned if they were not on holiday.

One wonders how long this decision will stand given the “Brexit” decision.