Judgement has been handed down in one of the long running holiday pay cases that dates back to 2014. The Court of Appeal has ruled that commission should be included in holiday pay, affirming the previous decision of the EAT. However, once again the judgement did not indicate any time period over which the holiday pay should be calculated.
This firm has always advised clients to base average pay for holiday pay on a 12 month reference period as this is likely to be an accurate reflection of the employee’s average pay but will also avoid seasonal, or performance based, peaks and troughs that often come hand in hand with commission or overtime based roles.
British Gas is likely to appeal the decision again, however, if you haven’t already, now is the time to implement a process for calculating and paying the correct amount of holiday pay.