Landmark holiday pay ruling

Posted By: James

Monday 11th August 2014

A ruling by the ECJ could enable employees to recoup thousands of pounds in lost commission. Workers who receive performance-related commission as part of their salaries should receive it in their holiday payments as well, and can claim holiday pay backdated over six years if the employer has failed to include commission. The case of Lock v British Gas was decided in May. It resulted in a landmark ruling in favour of Lock, a British Gas sales consultant whose job was to persuade businesses to buy energy products. Sales commission made up 60% of Mr Lock’s pay packet. But when he took two weeks' leave over Christmas 2011, he was paid only basic salary. This meant he was penalised as he could not generate sales or earn commission while away. The ECJ agreed with Mr Lock's argument that he should receive full pay, including the hypothetical commission he loses out on while on leave. Hannah Ford of Stevens & Bolton, said: "The court held that being left out of pocket in this manner may deter workers from taking holiday altogether, which cannot have been the intention of the 'European' Working Time Regulations." The ECJ ruling means that workers may be able to claim backdated holiday pay over six years by bringing a "breach of contract" case.

The Sunday Times, Money, Page: 8

 

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