Tribunal to rule on commission inclusion in holiday pay

Monday 2nd February 2015

Businesses could be facing higher payroll costs from this week as an employment tribunal meets to decide whether workers should be entitled to commission payments on top of their salary when they are on holiday. The tribunal will decide on an ECJ ruling in favour of gas engineer Joe Lock who said his holiday pay should include the commission he usually earns when working. Last year the ECJ ruled holiday pay must include not just basic salary but also an amount for overtime typically worked. Research by Irwin Mitchell found that 36% of bosses expected costs to rise by at least 6%. The firm’s Glenn Hayes said this is “now one of the biggest employment law issues” and that the commission ruling could “open the floodgates” for employees with similar arrangements.

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