ZJR Lock v British Gas: commission to be included in holiday pay
Employment solicitor, Nicola Robson, discusses the decision in ZJR Lock v British Gas and what impact it will have on employers.
The Claimant earned basic pay plus commission for the sales he achieved in his job. The commission varied. When the Claimant was on a two-week annual leave, his employer only paid him at his basic pay rate as the Claimant had not earned any commission in those two weeks.
This is a European case and the Attorney General stated that if the commission is linked to the tasks performed during employment then the commission has to be taken into account for calculating holiday pay as otherwise an employee may choose not to take annual leave. The AG recommended looking at an average of commission over the previous 12 months to decide how much was due as annual leave.
You can find full details of the ZJR Lock v British Gas case here.
What this means for you
This decision is not yet law as the final Judgement from the CJEU has not been made. But this case is extremely relevant for companies where employees earn commission on top of basic pay as part of their day to day tasks.
Employers don’t have to act on this yet, but we’ll keep an eye on this case to see how it’s decided and what effect that will have on current holiday pay.
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