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British Gas salesman wins right to commission-based holiday pay

A sales consultant has succeeded in an attempt to ensure commission is taken into account by his employer when calculating holiday pay. The British Gas worker, listed in court documents as Mr Lock, maintained that up to 60% of his average monthly earnings came from commission on sales he had made. However, when he checked his holiday pay he noticed that it had only been calculated using his basic salary. He brought an employment tribunal claim against the company in a bid to recover what he believed to be outstanding holiday pay. The Court of Justice of the European Union (CJEU) reviewed the case and ruled in favour of Mr Lock. It stated that whilst the commission he earned could fluctuate from month to month, it was regular enough to be regarded as part of his monthly remuneration.

As such, holiday pay should take commission into account and be worked out based on an average. Additionally, the tribunal found that if Mr Lock was not earning commission, this would mean he was not carrying out his role as outlined in his contract of employment. It would therefore be unfair not to recognise this work in his holiday pay. British Gas reacted to the ruling by saying that they were studying the CJEU judgement in detail’s, adding that they were already working with trade unions to improve future staff incentive schemes.

Dealing with employment disputes Arguments over pay are just one of many workplace grievances that can arise between employers and staff, and it is important to deal with these promptly and efficiently. If your business is faced with issues of this nature, it is important that you have procedures in place to deal with them. In particular, you must ensure you comply with the ACAS Code of Practice, as not doing so could see you lose a hefty compensation sum. Ralli can make sure your business is fully prepared to deal with issues raised by employees and compliant with disciplinary procedures.

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