Earning commission while on holiday
By Martin Chitty
The Court of Justice of the European Union (CJEU) finds that if a worker is paid commission calculated on the basis of the sales that they make, that commission must also be included in the calculation of holiday pay.
Calculating the correct amount of holiday pay owed to a worker can prove to be a tricky task for an employer. In 2012, the CJEU and subsequent Supreme Court judgments in British Airways plc v Williams established that a worker must be no worse off financially during annual leave than if he/she had continued working. So, under EU law, workers are entitled to receive their ‘normal remuneration’ when taking statutory holiday leave. This includes not only basic salary but also remuneration ‘intrinsically linked to the performance of the tasks’.
Given this, Williams brought into question whether other types of workers could argue that certain commission payments or non-guaranteed overtime currently excluded from holiday pay form part of their ‘normal remuneration’. Has Williams opened another holiday pay floodgate? …
Click on the link below to read the rest of the Wragge Lawrence Graham & Co briefing.
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 Wragge Lawrence Graham & Co
News from The Lawyer
Briefings from Wragge Lawrence Graham & Co
Two questions that go to the heart of whether ISPs can be required to block websites wthat promote the sharing of copyright-infringing content.
What should retailers do when planning flash sales and other short-term offers likely to trigger high demand? WLG sets out a few practical and legal pointers to help retailers get ready for the race ahead