The European Court of Justice (ECJ) has ruled that employers must include commission in holiday pay.

The case of Locke v British Gas involved a sales consultant for the energy company who earned an average of 60% of his salary from commission payments. When he took annual leave in December 2011, Mr Locke was only paid his basic salary as part of his annual leave and so made a claim to the Employment Tribunal for the outstanding holiday pay he believed he was owed.

Commission should be included in holiday pay

The Advocate General of the European Court of Justice ruled that commission should be included in holiday pay. He deemed that the proper levels of holiday pay were required under the Working Time Directive in order for workers to enjoy their leave and not face the prospect of financial hardship. More...