Eat Delivers Key Holiday Pay Decision

The EAT has today handed down its judgment in Lock v British Gas. This long awaited decision confirms that it is permissible to imply words into the Working Time Regulations (the domestic legislation) so they comply with EU law. The outcome in this case is that Mr Lock was held to be entitled to holiday pay which included results-based commission. This follows the recent decision in Bear Scotland which concerned the inclusion of overtime in holiday pay.

These decisions reiterate the EU principle of the right to paid leave. Employers are required to ensure that employees should not be discouraged from taking paid leave.

Businesses which pay commission to employees need to ensure that these principles are being correctly applied to holiday calculations to avoid exposure to tribunal claims.