Holiday pay to include commission according to the advocate-general
By Adele Hayfield
The rules surrounding the calculation of holiday pay are notoriously complex and have resulted in a number of claims before the Employment Tribunal. Given the advocate-general’s recent opinion, this situation is unlikely to change any time soon.
Under Regulation 16 of the Working Time Regulations 1998 (WTR), a worker is entitled to be paid during statutory annual leave at a rate of a week’s pay for each week of leave, calculated in accordance with sections 221–224 of the Employment Rights Act 1996. If the worker has normal working hours but his or her pay varies, he or she is entitled to holiday pay based on his or her average pay during those normal working hours over the previous 12 working weeks.
Until recently, only payments due under the employment contract for normal working hours were taken into account for these purposes. However, the Employment Tribunal in Neal v Freightliner Ltd ET/1315342/12 put that position in doubt, by deciding that holiday pay should take account of pay that is ‘intrinsically linked’ to the performance of tasks required to be carried out under the employment contract. Therefore, although Mr Neal’s contract only required him to work 35 hours a week, in reality he almost always worked overtime…
If you are registered and logged in to the site, click on the link below to read the rest of the Shoosmiths briefing. If not, please register or sign in with your details below.
News from Shoosmiths
News from The Lawyer
Briefings from Shoosmiths
The Court of Appeal has found in favour of a business tenant and decided that a periodic tenancy had not been created in the intervening period.
Careful drafting is usually required for restrictive covenants to be enforceable, although Prophet plc v Huggett provides the exception to the rule.
Analysis from The Lawyer
Compliance and corporate governance codes for large financial institutions will undoubtedly include provisions to regulate high pay in the future
There’s more to the ABS model than attracting the man in the street and procuring external investment. Partners at the big corporate firms, take note…