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Employment Law

Legal guidance - compliance - software

09 OCT 2014

Lock v British Gas Trading Ltd Case C-539/12; (2014) EMPLR 058

Edward  Benson

Partner

22 May 2014

European Court of Justice

Payment for holiday under the Working Time Directive must include an element of commission which the worker would have been entitled to earn had he continued to work during that holiday.

L was remunerated by a salary and commission on sales. Commission was paid in the month following the month in which the sales occurred. Therefore when he took a holiday, he received no commission in respect of the holiday period, which consequently reduced his commission for the following month. He claimed he was entitled to an amount by way of holiday pay to compensate him for the loss of commission during his holiday.

The European Court of Justice agreed. Even though he received full commission during the month in which the holiday occurred (because his commission was based on his sales during the previous month) the commission for the following month should include an amount, by way of holiday pay, for the commission he would have earned had he continued working throughout his holiday. It was left to national courts to determine how that was to be calculated but the court suggested some sort of average should be taken.
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