Advocate-general’s opinion that holiday pay should include commission — Lock v British Gas Trading Ltd and others
The advocate-general (AG) has issued an opinion that holiday pay of workers whose pay is made up of a fixed element and a regular commission (e.g. sales staff) should comprise both basic pay and an amount that reflects average commission (by reference to commission earned over a previous representative period). This opinion is predicated on the fact that article 7 of the working time directive is intended to enable a worker to actually take their annual leave entitlement and not be worse off as a result. Workers should not be discouraged from taking their leave entitlement for financial reasons.
Mr Lock was a sales consultant for British Gas who was paid a basic salary plus commission for sales made in the previous period. His commission equated to around 60 per cent of his total income. He was unable to make sales (and therefore generate commission) during his holiday and he therefore suffered a reduced income in the period following his return to work. He brought a tribunal claim for unpaid holiday pay, which was stayed pending a referral to the European Court of Justice (ECJ) to consider the question of whether holiday pay should include commission…
If you are registered and logged in to the site, click on the link below to read the rest of the Walker Morris briefing. If not, please register or sign in with your details below.
Sign in or Register to continue reading this article
It's quick, easy and free!
It takes just 5 minutes to register. Answer a few simple questions and once completed you’ll have instant access.Register now
Why register to The Lawyer
In-depth, expert analysis into the stories behind the headlines from our leading team of journalists.
Identify the major players and business opportunities within a particular region through our series of free, special reports.
Receive your pick of The Lawyer's daily and weekly email newsletters, tailored by practice area, region and job function.
More relevant to you
To continue providing the best analysis, insight and news across the legal market we are collecting some information about who you are, what you do and where you work to improve The Lawyer and make it more relevant to you.
News from Walker Morris
News from The Lawyer
Briefings from Walker Morris
The boom, bust and claim cycle could soon be repeated, sparking a rise in surveyors’ negligence cases. What lessons can be learned?
Court will not tolerate opportunistic attempts to capitalise on another’s trivial breach.
Analysis from The Lawyer
Which firms are cutting it in this era of slimline rosters, and who are the GC new brooms making clean sweeps? The Lawyer can reveal all
The law school war shows no signs of ending. But we have, perhaps, reached the end of the beginning.