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Holiday pay – the next chapter

The Employment Appeal Tribunal has (as of 22 February 2016) handed down its judgment in the long running case of Lock v British Gas Trading Ltd (click here to read the case details), upholding the Employment Tribunal’s judgment that employers should take into account commission when calculating employees holiday pay.

This case follows the EAT judgment in Bear Scotland v Fulton, which held that UK law must be interpreted in a way that conforms to EU law by requiring employers to take into account non-guaranteed overtime payments when calculating holiday pay.
Whilst it is likely that the issue of holiday pay will be subject to further appeals, today’s judgment reinforces the need for employers to take care to ensure that holiday pay is calculated in a way that reflects their employees’ normal remuneration.
For further advice or information  please contact the Employment team on 088 088 6004.