Should holiday pay include commission?

18th June 2014

Should holiday pay include commission?

image (67)

After months of speculation and anticipation, the Court of Justice of the European Union (CJEU) has decided in British Gas v Lock that where a worker’s pay includes an element of commission, that commission must be taken into account when calculating their holiday pay. It is likely that the consequences of this decision will be enormous.

Mr Lock was a salesman who earned commission based on hours worked and sales achieved. He had brought a holiday pay claim arguing that commission should form part of ‘basic pay’ in holiday pay calculations. He has won. The issue now for the UK Courts and Tribunals is whether it is sufficient to average an employee’s pay over the 12 weeks prior to their holiday in order to reflect the commission they receive.

For the moment, if this affects you, the answer is “yes”. The next issue will be the extent to which this case also applies to other payments such as bonuses and performance related pay.

For any employment advice, contact one of our employment solicitors in Ipswich who will be happy to help on 01473 211121 or email

Blog Posts

Government plans to give more protection to gig economy employees


The gig economy cases keep on coming. Both the Employment Appeal Tribunal and the…

Read More
Upcoming Events

The Great Framlingham Sausage Festival


Gotelee are proud to announce that we will be sponsoring the famous Great Framlingham…

Read More
News Posts



In all the excitement over the Brexit vote yesterday, it largely went unnoticed that…

Read More


"Approachable, very efficient, always willing to take my calls and update me."

- SH

"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

"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

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

- JH

"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

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


"Prompt, helpful, polite and very professional service"


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


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


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.