In the recent appeal case of Lock vs British Gas, the Employment Appeal Tribunal agreed with the original Employment Tribunal that results-based commission should be included in holiday pay, not just basic pay.
Mr Lock was paid basic pay plus a results-based commission, but when on annual leave was only paid basic pay. The tribunals took a similar approach to the recent case of Bear Scotland on guaranteed overtime and holiday pay, and found that commission should be treated like guaranteed overtime and included in holiday pay.
If you would like further advice or guidance relating to staff on either guaranteed overtime or commission and are not sure how to calculate holiday pay please contact Backhouse Solicitors on 01245 893400 and book a FREE 30 minute consultation.
The Backhouse Solicitors Team