Calculating Holiday Pay

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Cases around holiday pay are in no hurry to walk off into the sunset. In the most recent case to go to the European courts (Lock v British Gas Trading Ltd and others), the Advocate General gave an opinion on how the holiday pay of workers earning a basic salary and commission should be calculated. The Advocate General’s opinion was that Mr Lock’s remuneration while on annual leave should include an amount to reflect the commission he would have earned had he not taken annual leave. If the opinion is followed through into the decision of the ECJ, the decision is likely to have wide-reaching consequences for many businesses and their workers. Watch this space for an update.

For further help or advice please contact Tim Davies on 0191 211 7927.