The Employment Appeal Tribunal has announced the result in Lock v British Gas.
Mr Lock was paid basic salary and results-based commission but only basic pay during leave.
An employment tribunal held that results-based commission must be included when calculating holiday pay and that it was possible to read words into the Working Time Regulations (1998) (“WTR”). British Gas appealed. A reference was made to the CJEU.
The Employment Appeals Tribunal dismissed the appeal stating that it is permissible – and indeed necessary – to imply words into the WTR to comply with EU law.
The right to paid leave is a pillar of EU social law from which there can be no derogation.
Mr Lock therefore succeeded in his argument that he is entitled to holiday pay which includes an element for the amount of commission he would normally receive when working.
This is likely only to apply to statutory holiday.
