HOLIDAY PAY UPDATE

Holiday Pay Update. 

British Gas has been refused leave to appeal to the Supreme Court in Lock -v- British Gas Trading.  In Autumn 2016, the Court of Appeal held in the Lock case that employees whose wages include an element of commission can no longer be paid less when they are on annual leave.  As such, the amount employees get for their holiday pay must be based on both their basic pay and any commission they are normally entitled to.

The case will now go back to the Employment Tribunal, in order to determine whether Mr Lock was underpaid and, if so, what the appropriate period for the calculation should be.

Therefore, any employers who currently operate a commission-based structure will require to include this in holiday calculations going forward, to ensure they comply with their legal obligations.

Any member companies impacted by this decision should contact Scottish Engineering for advice.