The Court of Appeal has today given its decision in the long running holiday pay case of British Gas v Lock. It has apparently confirmed that EU leave, i.e. the four weeks’ leave derived from the Working Time Directive, should include a sum in respect of contractual “results-based commission” where it forms part of a worker’s normal remuneration.
Any employer hoping for some useful practical guidance on the nuts and bolts of how commission should be taken into account for statutory holiday pay purposes will remain disappointed. We understand the Court of Appeal only dealt with the narrow issue of whether UK legislation can be interpreted in such a way as to give effect to EU law requirements regarding the calculation of holiday pay.
A more detailed update will follow next week.