Holiday Pay Update

There has been yet more news regarding the issue of holiday pay.

Back in April 2015, the Employment Tribunal decided in Lock v British Gas Trading Limited that commission which forms part of an employee’s normal remuneration should be taken into account when calculating how much holiday pay they should receive.

British Gas, perhaps unsurprisingly given what was at stake, appealed against that decision on the basis that the Tribunal shouldn’t have interpreted the Working Time Regulations (WTR) in the way they did. The Employment Appeal Tribunal (EAT) has decided that the Tribunal were correct in their decision and that the WTR could be interpreted in order to include commission payments in the holiday pay calculation. Unfortunately, there is still no guidance on how holiday pay should be calculated.

In the circumstances, the position remains unchanged. However, it is believed that British Gas is considering taking the matter to the Court of Appeal.

We have previously prepared a guidance note to answer some common questions on this issue, which has been updated in light of the recent EAT decision. Clients can find this by logging into My EW by clicking on the link which can be found at the top of every page of the website. You can find the document in Employment Law & HR Essentials > Holidays. The document is called ‘Holiday and Commission FAQs’.

Director of Legal Services

James Tamm

Whether you’re facing an immediate challenge or just want the reassurance of an expert second opinion, we’re here to offer clear, commercial advice so that you can focus on what you do best.

Our live Client satisfaction rating is currently:

Last Updated:

Urgent Issue?

Why not take a look through our library of carefully created Employment Law documents and templates to see if we have what you need?

More From EW

Combating coronavirus | FREE advice and resources for employers

Our Coronavirus Advice Hub is open now. Get instant access to regularly updated guidance, sample policies, template risk assessments and more.
 
Click to explore what’s available.

Get your FREE demo

We combine the service quality of a law firm with the certainty of fixed-fee services to provide expert, solutions-focused Employment LawHR and Health & Safety support tailored to your organisation. Fill in the form to receive a call from one of our advisers and to discuss how our award-winning Health & Safety software can benefit your organisation.

Or call us on 0345 226 8393.

Get your FREE download

We combine the service quality of a law firm with the certainty of fixed-fee services to provide expert, solutions-focused Employment LawHR and Health & Safety support tailored to employers.

Call us on 0345 226 8393.

Get your FREE download

We combine the service quality of a law firm with the certainty of fixed-fee services to provide expert, solutions-focused Employment LawHR and Health & Safety support tailored to employers.

Call us on 0345 226 8393.

Get your FREE download

We combine the service quality of a law firm with the certainty of fixed-fee services to provide expert, solutions-focused Employment LawHR and Health & Safety support tailored to employers.

Call us on 0345 226 8393.

Get your FREE download

We combine the service quality of a law firm with the certainty of fixed-fee services to provide expert, solutions-focused Employment LawHR and Health & Safety support tailored to employers.

Call us on 0345 226 8393.

Get your FREE download

We combine the service quality of a law firm with the certainty of fixed-fee services to provide expert, solutions-focused Employment LawHR and Health & Safety support tailored to employers.

Call us on 0345 226 8393.

Get your FREE download

We combine the service quality of a law firm with the certainty of fixed-fee services to provide expert, solutions-focused Employment LawHR and Health & Safety support tailored to employers.

Call us on 0345 226 8393.

Get your FREE download

We combine the service quality of a law firm with the certainty of fixed-fee services to provide expert, solutions-focused Employment LawHR and Health & Safety support tailored to employers.

Call us on 0345 226 8393.

Get your FREE download

We combine the service quality of a law firm with the certainty of fixed-fee services to provide expert, solutions-focused Employment LawHR and Health & Safety support tailored to employers.

Call us on 0345 226 8393.

Get your FREE download

We combine the service quality of a law firm with the certainty of fixed-fee services to provide expert, solutions-focused Employment LawHR and Health & Safety support tailored to employers.

Call us on 0345 226 8393.

Get your FREE download

We combine the service quality of a law firm with the certainty of fixed-fee services to provide expert, solutions-focused Employment LawHR and Health & Safety support tailored to employers.

Call us on 0345 226 8393.

Get your FREE download

We combine the service quality of a law firm with the certainty of fixed-fee services to provide expert, solutions-focused Employment LawHR and Health & Safety support tailored to employers.

Call us on 0345 226 8393.

Get your FREE download

We combine the service quality of a law firm with the certainty of fixed-fee services to provide expert, solutions-focused Employment LawHR and Health & Safety support tailored to employers.

Call us on 0345 226 8393.

Get your FREE download

We combine the service quality of a law firm with the certainty of fixed-fee services to provide expert, solutions-focused Employment LawHR and Health & Safety support tailored to employers.

Call us on 0345 226 8393.

Don't want to wait?

You can always call us now on 01244 646 236

Get your FREE employer consultation

We combine the service quality of a law firm with the certainty of fixed-fee services to provide expert, solutions-focused Employment LawHR and Health & Safety support tailored to employers. Fill in the form to receive a call from one of our advisers and to discuss how we can support your organisation.

Or call us on
0345 226 8393.

Get your FREE demo

We combine the service quality of a law firm with the certainty of fixed-fee services to provide expert, solutions-focused Employment LawHR and Health & Safety support tailored to your organisation. Fill in the form to receive a call from one of our advisers and to discuss how our HR software can benefit your organisation.

Or call us on 0345 226 8393.