Urgent Update: Commission and Holiday Pay – ACTION REQUIRED
- Date: Friday 25th November 2016
In another Landmark ruling, courts have decided in favour of Lock in his case against Bristish Gas. Mr Lock is a salesman, who has previously been involved in one of the cases regarding overtime to be included in holiday pay. Subsequently, Mr Lock also submitted a claim for loss of earnings due to lack of commission payments during spells of holiday.
The courts have now advised that any commission payments made based on the personal performance of an individual should be considered when calculating holiday pay.
The same 17 week reference period applies. This ruling does not include company-wide bonus schemes such as Christmas bonuses. However, there is no clear indication on where team or department bonus payments sit within this and what happens if the individual is subject to regular seasonal peaks in their sales figures.
Since there will be a limited number of cases on this matter in the near future, employers are advised to adopt a sensible and consistent approach.
TO DO: You must check your contracts and handbooks/policies and scrutinise the wording in regards to bonus schemes and commission payments. If this article applies to you, please contact your HR consultant for further advice!