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Workers entitled to commission within their holiday pay?

Wednesday, 02 July 2014, Categories Latest News | Employment News | VP News

Due to EU Court ruling you could be entitled to your commission whilst on holiday

The landmark ruling comes after British Gas salesman Mr Lock took his employer British Gas to an employment tribunal, claiming his commission should be paid on top of his basic salary while he was on annual leave.

Last month The Court of Justice of the European Union ruled in Mr Lock's favour, saying the Working Time Directive, under which all EU holiday pay is governed, allows for employees to keep receiving their work-related benefits while on holiday.

Catherine comments, “Any employee that is paid a basic salary but receives additional income from commission could potentially now be eligible to claim for back dated payments.”

She adds: “There are many businesses across Devon that employ staff on some form of commission basis so the impact of this ruling on the county could be huge. The ruling doesn't just stop at commission; it could also apply to other additional payments such as bonuses and overtime.”

This case will now go back to the Employment Tribunal to determine what annual leave payments Mr Lock is entitled to under UK law. It is likely that UK legislation will be amended to reflect this ruling so that an element of commission (averaged from previous months) will be included in holiday pay.

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Catherine Rosewell

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Catherine Rosewell

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