ECJ Ruling

26th February 2016

ECJ Ruling: Holiday pay must be calculated based on all elements of normal earnings.
A new case (British Gas v Lock) has confirmed that holiday pay calculations should take account of commission earnings as well as overtime.

Mr. Lock, a salesman for British Gas received a basic salary plus commission on a results based. The commission element of his pay amounted to approximately 60% of his overall pay. British Gas included only the basic pay element in any holiday pay and said that they were complying with English law in doing so and therefore in the periods following holiday the employee would receive less as they had not been working and therefore would not have earned any commission. The European Court of Justice confirmed that from a European Law perspective, the sort of commission that the employee was receiving should be included for holiday pay purposes. The Employment Tribunal confirmed that this should be the case as far as English law was concerned too but only for the first 20 days of holiday in each year.

Although legislation was passed to limit the potential for “back dated” claims for underpayment of holiday pay, employees who believe that they may be owed holiday pay can still submit their claims to the Employment Tribunal. If you require further information or would like to discuss this in more detail to see whether it affects you and your business, please contact us.

Blog entry by: Trina Nunn.



 
Other items in Blogs
 
Jaimie King
19th November 2018 Charities small trading tax exemption to increase

During the Autumn Budget on 29th October 2019, it was announced that the small trading tax exemption limits for Charities is set to increase.   The exemptions apply to Charities who trade outside of their primary purpose. A Charity will not pay tax on trading profits that are a part of the Charity’s primary purpose…

Read More »

Victor Courdelle
19th November 2018 Xero Rapidly Becoming THE Small Business Platform

At Xerocon 2018, held Wednesday and Thursday last week, we heard how the number of Xero Subscribers has now reached over 1.6 Million Worldwide.   Xero’s focus on becoming THE Small Business Platform is greater than ever, with recent market research confirming how users of Xero really do save time, in some cases as much…

Read More »

Ian Piper
19th November 2018 Draft Brexit Agreement: What’s all the fuss about?

So now that we can finally see what Brexit might mean in reality, with the publication of the Draft Brexit Agreement, everyone is still unhappy. After much talk about what we wanted, which was leaving the EU club, whilst cherry-picking retention of access to the Single Market and a borderless border in Ireland, it has…

Read More »

Scott Butcher
16th November 2018 Don’t dwell on your ATED obligations

With only just under 6 months until the 2019/2020 ATED return filing deadline of 30th April 2019. It may be an appropriate time to consider whether your limited company may be obliged to submit an ATED return. The annual tax on enveloped dwellings (ATED) applies to companies which own an interest in a residential property…

Read More »

Matilda Mawson
16th November 2018 New Year, New….. Tax Return

  There are only 76 days until the self-assessment tax return deadline of 31 January 2019. If your return is not filed by this date an automatic £100 penalty will be applied. With the festive season on the horizon it’s easy to push the tax return deadline to the back of your mind, however don’t…

Read More »

Richard Alecock
16th November 2018 Top 5 tips for start-up businesses

Businesses are born in many ways but there are some common considerations for all start-ups. Legal form Consideration needs to be given as to the how you wish to set up and structure your business. If you are going it alone perhaps a sole trader could be the best route or, if there is more…

Read More »