Holiday pay and commission!

Following the ECJ’s decision in the Lock case last year, the Employment Tribunal, last month held that the Claimant’s holiday pay should include an element of his commission.

This will impact all future holiday entitlement. This decision will affect you if your employees receive commission.

As an employer, check your holiday policy and the contracts of employment to ensure that they reflect the above change.

Going forward consider:

• Future pay increases
• Design and introduction of new commission or bonus schemes
• Increase in payroll complexity and how this operates