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Employees should have commission factored into holiday pay

In a recent landmark case the European Court of Justice (ECJ) has ruled that employees should have commission factored into their holiday pay.

Mr Lock, employed by British Gas, took his case to the ECJ following a dispute over holiday pay and the ECJ have now ruled that someone who would be financially disadvantaged after taking holiday and not receiving their normal commission, should be remunerated for this.

Following the enactment of the European Communities Act 1972 the United Kingdom became a part of the European Union. Provisions of Treaties and Regulations made by the European Union which give clear and unconditional rights to individuals can be enforced in English Courts. One of the areas this applies to is Employment Law and following the implementation of the Working Time Regulations 1998, most workers in the United Kingdom are now entitled to 5.6 weeks paid annual leave each year. The ECJ have now ruled that this entitlement should include a commission element, if appropriate.

It will be a decision for the Courts of the United Kingdom as to how such commission will be calculated but this ruling is clearly advantageous to employees.

For Employment Law queries please contact the office on 01524 39760 to book a 2 Hour consultation with Matthew Winder at a fixed fee of £90.00 + VAT we have offices at Lancaster, Kendal and Barrow-in-Furness.


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