Case law round-up June 2014: Lock v British Gas Trading; Neal v Freightliner Ltd; and more
Holiday pay should include commission — Lock v British Gas Trading Ltd [C-539/12]
The European Court of Justice (ECJ) has handed down an important decision that affects the calculation of holiday pay for workers whose pay includes an element of commission. In a nutshell, it found that a worker’s holiday pay must include an amount calculated to reflect the amount of commission the employee will lose out on in the future as a result of taking leave. This decision will significantly affect those sectors where pay arrangements include commission structures, in particular those who employ workers on set working hours and who pay a basic salary plus commission.
Affected employers will need to digest the implications of this decision and consider what action, if any, they should take at this stage.
Holiday pay and overtime — Neal v Freightliner Ltd [ET/1315342/12]
On 30 and 31 July, the Employment Appeal Tribunal (EAT) is due to hear the appeal in the case of Neal v Freightliner Ltd, which centres on the issue of whether non-compulsory overtime should be included in holiday pay calculations under the Working Time Regulations…
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