The EAT has handed down its decision in the eagerly awaited case of British Gas Trading v Mr Z J Lock and Sec of State for BIS.
UNISON have succeeded in defeating the appeal at the EAT which confirms that holiday pay should include basic pay and commission where this is how an employees usual pay is made up.
This has huge ramifications as a windfall for employees who are paid in part via commission payments. Employers will need to be alive to this position when offering contract terms and also when making holiday payments to avoid other potential claims.
The Employment Appeal Tribunal decision means that workers’ remuneration for annual leave periods must include both commission and basic pay, if this is what they are normally paid. This case will have implications for workers who normally receive commission and potentially other similar payments and are paid less than their normal pay during periods of annual leave. UNISON General Secretary Dave Prentis said: “This is a victory for workers and a victory towards fair pay in this country and beyond. UNISON has consistently been successful in its fight for workers to have their commission included in their holiday pay. This case will have implications for thousands of workers in the UK and in Europe who for years have been denied a fair deal.