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Update on Holiday Pay


Further to our blog yesterday confirming that commission should be included when calculating the first 4 weeks holiday pay per year, it appears that British Gas has sought leave to appeal the decision to the Court of Appeal. Given the significance of the decision for UK employers it is likely to be granted.

However, as the law currently stands, commission should be included unless or until a higher Court determine otherwise. Notwithstanding this, some employers may still choose to hold off paying such monies until the matter is finally determined, preferring to risk a claim, rather than paying out monies which they hope will ultimately be determined not to be payable.

Many cases are currently stayed pending the outcome of the EAT decision. It remains to be seen as to whether Tribunal’s continue to stay the cases pending the Court of Appeal decision or whether they will now deal with them and risk appeals.

We will be discussing this at our next annual employment law seminars. If you wish to reserve your space, please visit out events page.

Please note this information is provided by way of example and may not be complete and is certainly not intended to constitute legal advice. You should take bespoke advice for your circumstances.


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