Lock is the latest in a long line of European judgments which have picked apart UK law on holiday pay. The right to annual leave stems from European law and the courts applying this are doing so in an expansive way.
UK courts have already allowed holiday pay to include overtime (Neil v Freightliner Limited) and it is apparent that the UK Working Time Regulations are increasingly unfit for purpose and in need of reform.
In the meantime, there is a lot of uncertainty on this issue and for employees with income which includes elements such as commission and overtime, claims can potentially date back to 1998. This is due to the fact that an employee may claim within 3 months from the latest wage payment and claim that a series of unlawful deductions have been made since the start of employment.
It is therefore extremely important for employers to take advice on this issue early to avoid any potentially expensive disputes.