Following the swathe of recent case law on holiday pay, a recent case heard by the European Court of Justice has further expanded the position in favour of workers. In King v Sash Window Workshop Ltd (29 November 2017) a self-employed contractor, who was actually a worker, was held to be entitled to be paid for outstanding holiday pay stretching back over a thirteen year period.
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.
Yesterday the Employment Appeal Tribunal (EAT) handed down its judgment in Lock v British Gas. Despite arguments that a decision in Mr Lock’s favour could be “potentially productive of injustice” the EAT concluded that the Working Time Regulations must be interpreted to make them compatible with the EU Directive – in this case by reading words into them so that holiday pay is calculated to include results-based commission.