Employment Appeal Tribunal confirms holiday pay must include commission

Lock v British Gas focussed on whether holiday pay should include sales-related commission, but also the interaction of EU and UK law. Mr Lock was paid basic salary and results-based commission, but only basic salary during periods of annual leave. He brought a claim and the Employment Tribunal held that his holiday pay should include commission (because it is necessary to add words to the Working Time Regulations 1998 to give effect to the Working Time Directive, so that commission and similar payments are included in holiday pay). British Gas appealed to the Employment Appeal Tribunal. The EAT dismissed the appeal yesterday (22 February 2016). It held that holiday pay should include commission and that it's necessary to imply words into the Working Time Regulations 1998 to comply with EU law. See also Bear Scotland & Others v Fulton & Others. These cases are particularly relevant for any employers whose workers' pay includes commission, bonuses and overtime payments.