It looks like there is finally a decision about commission being included in holiday pay!
You may remember us talking about Locke v British Gas Trading Ltd last year and the Employment Appeal Tribunal (EAT) has now decided that in cases where commission is regularly paid as it is directly linked to the work being carried out in a role it should also be included in holiday pay calculations.
Good news for employees who rely on commission in their pay packet. Not so good for the business owners who could find the ruling costly to follow but just as costly if they don’t and end up finding themselves facing an unlawful deduction from wages case.
Do your employees earn commission? Could this decision make you rethink your current pay structure? If commission is seen as salary is there any actually worth in it at all or would it work better for your business to increase salary’s and take away the once seen incentive of earning commission?
The actual calculations of how to work out the payments have not yet been decided, we will let you know as soon as they have been but in the meantime if you have any concerns about it all get in touch.