It is probably not a surprise to many who have been following the issue that this is the fourth update we have prepared on the calculation of holiday pay over the last 12 months.
The main issues have concerned whether or not commission and overtime should be taken into account when an employer is calculating how much to pay a worker for a period of holiday and we set out below the current position and the most recent developments.
Impact of Commission
In the judgments of a string of cases from the European Court of Justice (ECJ) concerning workers and their holiday pay, the case of British Gas v Lock confirmed that a worker’s holiday pay must be calculated to compensate him for the loss of any commission as a result of being on holiday.
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