Following our January forecast the judgement in Lock v British Gas has been released. Anyone not already doing so should calculate normal pay to include commission. There is nothing new in the decision but it does make the previous ones more binding. The principles on holiday pay are now clear:
1. Taking holiday must not financially disincentivise or disadvantage the employee.
2. The first 20 days holiday should be calculated at average pay.
3. Average pay can and should include commission, overtime and allowances.
4. The reference period for averaging should be representative.