Holiday Pay And Commission Payments

The employment tribunal in Leicester has handed down its long-awaited decision in Lock v British Gas.

The decision will impact on future holiday pay where commission forms part of the remuneration.

Mr Lock was a salesman on a basic salary with variable commission paid in arrears. Mr Lock’s commission pay depended not on the time worked, but the amount of sales that were actually successful. Mr Lock could not earn commission whilst on leave, and therefore would lose income by taking it. He could only earn his basic pay whilst on annual leave and it was a disincentive for him to take time off. He brought a claim for his loss of holiday pay after taking leave in December 2011 to January 2012.

Following the ECJ’s decision last year, the employment tribunal has held that Mr Lock’s holiday pay should include an element for his commission and the Working Time Regulations 1998 now take this into account..

This will impact on future holiday pay entitlement which can be backdated for up to two years and which takes effect on 1 July 2015.

If you would like more information on how these minimum wage increases affect you, speak to our Employment Solicitor, Steven Eckett on 020 7998 7777 or email him at

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