Holiday Pay Claims

26 March 2015

In Lock and ors v British Gas Trading Ltd, an Employment Tribunal in England dealt with the issue of holiday pay and whether commission should be taken into account when calculating it.

Mr Lock was a salesman on a basic salary with variable commission paid in arrears. Mr Lock could not earn commission whilst on holidays and would lose income by taking holidays. He brought a claim to the Tribunal for his 'lost' holiday pay after taking leave in December 2011 to January 2012. The Tribunal made a reference to the ECJ for a preliminary ruling which found that commission payments must be taken into account when calculating holiday pay under the EU Working Time Directive and the Tribunal have held that there is no obstacle to interpreting the Working Time Regulations 1998 so as to include commission payments in the calculation.

In England regulations came into effect in January 2015 to limit the scope of these claims to 2 years, no such similar regulations apply in Northern Ireland, however there may be limitation issues if the gap between holidays is more than 3 months. If you require advice on this issue please contact Mary Gavin or Gerry Daly.