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
 
Richard Alecock
11th May 2018 Bury St. Edmunds and Mildenhall clients attend the last in our MTD Seminar series

Thursday evening saw the last in our successful series of MTD seminars, held at Memorial Hall in Newmarket, where we had another great turnout. We explained to our clients and guests the implication of  MTD that launches for VAT registered businesses over the VAT threshold starting in April 2019 and how those changes would directly…

Read More »

Rebecca Marley
9th May 2018 iZettle – Taking payments has never been so easy

iZettle was founded in Stockholm in 2010 and have attempted to revolutionise mobile payments with the first mini chip card reader and software for mobile devices. Their commerce platform for small businesses in Europe and Latin America provides tools to get paid, sell smarter and grow your business. Some of the huge benefits are: Automatically…

Read More »

Donna Gidney
9th May 2018 Latest MTD seminar held at our March office

The latest of our series of MTD seminars was held at the March office last night. This was well attended and gave clients an overview of MTD and what it means for them. The presentation was followed by a Xero demonstration, which highlighted the benefits of moving to a cloud based package over and above…

Read More »

Amanda Newman
3rd May 2018 MTD delayed further is not the case

HMRC have recently issued further information regarding MTD , stating prioritising EU exit work is delaying plans to introduce further digital services for individuals. This however ONLY affects simple assessment and real time tax code changes, HMRC are still striving to encourage further uptake of personal tax accounts. Simple assessment was intended to take two…

Read More »

Richard Alecock
1st May 2018 Bury St. Edmunds and Mildenhall clients attend latest MTD Seminar

Friday evening saw the next in our series of MTD seminars, held at our Bury St. Edmunds office, where we had a full turnout. We explained to clients the implication of  MTD that launches for VAT registered business over the VAT threshold starting in April 2019 and how the changes would directly affect them, as…

Read More »

Stephen Malkin
1st May 2018 CITB Levy: Changes in calculation basis

Builders will probably now be aware that the basis for calculating how much their annual payment is under the Construction Industry Training Board (CITB) has recently changed:     Old Basis New Basis Levy on employees 0.5% 0.5% Levy on labour only sub-contractors 1.25% 0% Levy on payments to sub-contractors with Net CIS status 0%…

Read More »