Holiday pay update: Lock decision
The Employment Tribunal has delivered its judgment in Lock v British Gas, the long-running case on holiday pay and commission.
The case has already been all the way to the European courts where it was decided that a worker should have commission taken into account when calculating their holiday pay.
The case was then returned to the Employment Tribunal to look at whether the domestic legislation governing holiday pay, the Working Time Regulations 1998, could be interpreted so as to make it consistent with European law. The answer is no.
The Employment Tribunal has decided that additional wording must be read into the Working Time Regulations – in the form of a new regulation 16(3)(e) – to allow commission to be taken into account when calculating a week’s pay.
The matter is not over, however. Outstanding issues for the Employment Tribunal to determine include the correct reference period for calculating holiday pay and whether Mr Lock’s commission scheme adequately compensated him for holiday pay.
CASE Lock v British Gas Trading Limited, Employment Tribunal, 23 March 2015