1. Lisbeth Enterprises Ltd trading as Philip Wain v Luk See Ming, Mandy
It is established law that neither gratuitous commission nor discretionary commission is to be included in the calculation of holiday pay or annual pay. The Court of Final Appeal held in this case that monthly contractual commissions are not to be included as "wages" as well for the purposes of determining the holiday and annual leave pay sections of the Employment Ordinance ("Ordinance").
In Hong Kong, commissions have for a long time formed part of the remuneration package for many employees. As a result of this case, the Labour Advisory Board has agreed with labour representatives and employer group leaders a proposal to amend the Ordinance. Under this proposal, the law will be amended to state clearly that commissions do form part of wages and must be included in the calculation of holiday pay. The calculation of the relevant statutory benefits will be amended, so that instead of using the daily
