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Holiday pay again - the Lock decision

View profile for Chris Dobbs
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Lock v British Gas

Following the much publicised holiday pay cases in the European Court of Justice (ECJ) and Employment Appeals Tribunal (EAT) in recent months, the employment tribunal in Leicester has handed down its long awaited decision in this case.

Mr Lock was a salesman on a basic salary with variable commission paid in arrears. Mr Lock’s commission depended not on the time worked, but the outcome of that work, i.e. sales achieved. Mr Lock could not earn commission whilst on leave, and therefore would lose income by taking it. He brought a claim for his ‘lost’ holiday pay after taking leave in December 2011 to January 2012.

Following the other recent decisions, the employment tribunal has held that Mr Lock’s holiday pay should include an element for his commission

In Practice

This decision, although long awaited, is not a surprise. The tribunal had to follow the ECJ and EAT cases. It will impact on future holiday pay entitlement. The impact on back-claims is reduced by the two year cap on backdated claims that the government has introduced, which takes effect on 1 July 2015.

At Frettens, all of our solicitors offer a free initial meeting or chat on the phone to answer your questions. If this article raises issues for you or your business, please call us on 01202 499255 and Kate or Paul will be happy to discuss it with you.