Holiday pay and commission

17th January 2014

Holiday pay and commission

image (67)

Commission doesn’t form part of holiday pay. Or does it? An opinion from Europe has set the ball rolling towards resolving conflicting decisions on this.
The case involved a salesman who was paid basic salary and commission. Commission varied from month to month, based on the sales he achieved. When he took a fortnight’s leave (during which time he wasn’t able to make any sales) his employer calculated his holiday pay simply by reference to basic salary.
The Advocate-General’s view (the Advocate-General is a type of preliminary judge in the Court of Justice of the European Union) is that that was the wrong approach. Commission was intrinsically linked to the salesman’s work and so should have been included in the holiday pay calculation. If it wasn’t included, then he could be deterred from taking annual leave.
The European Court usually follows the Advocate-General’s recommendation.  If it does, it will prompt employers to review their approach to remuneration and perhaps alter their pay structures. The UK courts would then be required to decide how the commission element of holiday pay should be calculated, but it could be based on an average yearly commission.
This is important for anybody who pays commission.  We’ll report again when the European Court of Justice decides the case.

Blog Posts

Unfair dismissal and permanent health insurance (PHI)

22/05/2019

Permanent health insurance (PHI) provides employees with pay during long term sickness or incapacity.…

Read More
Upcoming Events

Managing the workforce in 2019

03/04/2019

If you employ staff or have responsibility for HR, Gotelee Solicitor’s annual employment law…

Read More
News Posts

Employers must record all working time

16/05/2019

If you attended Gotelee’s Employment Law Update at Trinity Park last month you may…

Read More

Testimonials

"Jade made the process of buying our first home quick, easy and took the stress out of a new chapter of our lives"

-

"This is by far the go-to firm for any issues. You are made to feel valued from the outset and they are so confident in what they do. Wouldn't recommend any other. Thank you Hugh and Max."

- Ros Jones

"I would like to say thank you for your help, support and guidance over the last two and a half years. Obviously should I need further assistance in the future I shall not hesitate to call you guys."

-

"We were very pleased to have Jade as our solicitor, the service was excellent and we felt kept in the loop which minimised stress"

- CT

"Jade Shelton was absolutely fantastic!! Professional and proactive at all times."

- JH

"The ease that we could access and speak to Pat Smith - Thank you"

-

"I have used Tracey Laflin at Gotelee on a number of occasions and in my opinion, she is simply the most efficient conveyancing solicitor I have ever worked with. From the outset, she took the time to understand my specific business requirements and to date, she has exceeded all of my expectations."

- Dale Fiddy - Portobello Developments Ltd

"I don't think this house sale would have pulled together without Jo's determination and expertise. Excellent!"

- MT

"We found Rachel Dawson outstanding, polite, professional and caring."

-

"Domini was very fast and efficient in carrying out her work for me - she was also very good at explaining things to me"

-

Please select preferred method of contact

* We will only contact you by telephone if you select this as primary form of contact. All web enquiries will be stored on our website for 30 days.