Ruling states commission should be included in holiday pay

By Farleys Solicitors LLP

21 Apr 2015

A recent ruling in employment law has created a raft of new enquiries as businesses attempt to implement the changes into their business, report the employment law team at Farleys Solicitors.

At the end of March, a ruling in the European Court of Justice clarified that workers who receive commission as part of their pay are entitled to receive the benefit of that commission during periods of annual leave.

Previously, employees would only be entitled to payment at basic rate whist on holiday, with no account for loss of commission being made. Employers throughout the region have therefore been seeking advice about the matter, with some already having faced backdated pay claims from employees.

In the landmark ruling in the case of Lock vs British Gas, it was ruled that the payment of commission in a British Gas sales representative’s monthly pay was permanent enough to be regarded as part of his ‘normal salary’ and therefore, loss of such payments as a result of time taken off work for holiday was contrary to his rights. Employers will therefore need to make changes regarding how they pay commission, or else risk facing claims from employees.

Victoria Mitchell, head of employment at Farleys Solicitors in Blackburn commented: “This ruling is a landmark decision and will affect all employers who utilise commission payments as part of remuneration packages. Employees and employers that are affected by commission should seek advice at the earliest opportunity. Although the judgement is quite clear, there are quite complex rules applying to timescales for when employees can make backdated claims. “It should also be noted that employers need also make similar allowances for employees that regularly work overtime as again, they are now entitled to claim the benefit of being paid for overtime even when they are on holiday."

Latest news

1

University of Cumbria and BAE Systems launch flagship scholarship BAE Systems scholarship

University of Cumbria and BAE Systems launch flagship scholarship

11 Jun 2025

2

College restaurant honoured with top culinary award from prestigious chefs’ guild Karen Lilley Front Of House Lecturer David McKown David Lyon Scholars Manager And Blackburn College Principal Dr Fazal Dad

College restaurant honoured with top culinary award from prestigious chefs’ guild

10 Jun 2025

3

Cosmetic manufacturer lets new unit on Frontier Park, Burnley Badgequo have agreed to let the site on Frontier Park

Cosmetic manufacturer lets new unit on Frontier Park, Burnley

10 Jun 2025

4

SQ Digital celebrates 25 years and enters new era with CEO appointment Kamal Essa

SQ Digital celebrates 25 years and enters new era with CEO appointment

09 Jun 2025

5

New chair appointed to Atlas BFW Management Graham Cowley

New chair appointed to Atlas BFW Management

09 Jun 2025

Background image for hub sign up block

LBV Hub

Leverage Lancashire Business View platforms

Post your news
Post your events
Post your offers
Build your network
Improve your SEO
Gain coverage in the magazine
Sign-up
Events
Lancashire Net Zero Carbon Conference
Net Zero Carbon Social 1200pxtrident 2
Networking
18 Jun 2025

Lancashire Net Zero Carbon Conference

Crow Wood Hotel & Spa Resort, Burnley, BB12 0RT

08:30 - 13:00

LBV123 July/August Launch Event
Lancashire Business View magazine launch
Networking
16 Jul 2025

LBV123 July/August Launch Event

Burnley College Industry Hub, Burnley, BB120AN

08:30 - 10:30

Lancashire Built Environment Conference 2025
BEC 315 X 315 Px
Networking
25 Sep 2025

Lancashire Built Environment Conference 2025

Blackpool Football Club, Blackpool, FY1 6HX

08:30 - 13:00

CMI Level 5 Management and Leadership Course
UCLanAerialCampus.jpg.jpg
LBV Hub Seminars
21 Feb 2025 - 21 Feb 2026

CMI Level 5 Management and Leadership Course

Preston Campus, Preston , PR1 2HE

09:00 - 17:00

CMI Level 5 Project Management Course
UCLanAerialCampus.jpg.jpg
LBV Hub Seminars
21 Feb 2025 - 21 Feb 2026

CMI Level 5 Project Management Course

Preston Campus, Preston, PR1 2HE

08:00 - 17:00

RISE - The Academy for Female Leaders and Managers
WENDY BOWERS RISE Illustrstion copy.jpg.jpg
LBV Hub Seminars
02 Apr 2025 - 08 Oct 2025

RISE - The Academy for Female Leaders and Managers

East Lancashire Chamber of Commerce, Clayton le Moors, BB5 5JR

09:00 - 15:30

The Business Network Central & East Lancashire
LBV Hub Networking
12 Jun 2025 - 12 Jun 2025

The Business Network Central & East Lancashire

Stanley House, Blackburn, BB2 7NP

11:30 - 14:15

Preston Freelancer Meet-Up
LBV Hub Networking
12 Jun 2025 - 12 Jun 2025

Preston Freelancer Meet-Up

Society1, Coworking Space, Preston, PR1 3LT

10:00 - 11:30

Midnight Oil: The Entrepreneur’s Journey: Scaling Strategies with Brad Waldron
BU-June-Event-BRAD-1.jpg.jpg
LBV Hub Networking
18 Jun 2025 - 18 Jun 2025

Midnight Oil: The Entrepreneur’s Journey: Scaling Strategies with Brad Waldron

Blackpool Football Club, Bloomfield Rd, Seasiders Way, Blackpool, FY1 6JJ

08:30 - 11:30

Chamber Business Lunch – June
Chamber Logo1.png.png
LBV Hub Networking
20 Jun 2025 - 20 Jun 2025

Chamber Business Lunch – June

Lancaster House Hotel, Bailrigg, Lancaster, LA1 4GL

11:00 - 13:30

90 day Business Planning Workshop
LBV Event Header.png.png
LBV Hub Seminars
20 Jun 2025 - 20 Jun 2025

90 day Business Planning Workshop

Bolton Arena, Arena Approach, Horwich, BL6 6LB

09:00 - 16:30

Moonlight and Memories Walk 2025
MMW.jpg.jpg
LBV Hub Fundraisers
21 Jun 2025 - 21 Jun 2025

Moonlight and Memories Walk 2025

St Catherine's Hospice, Preston, PR5 5XU

18:00 - 23:00

Advertise with us

Reaching 50,000 members, our print, digital and event platforms offer a fantastic way to raise your business profile and help you grow.

Find out more LBV122 Online Graphic
Subscribe now

Weekly news bulletin