The European Court of Justice (ECJ) released its decision today
in the case of British Gas v Lock. This decision could have far
reaching financial consequences for employers who pay commission to
workers as part of their remuneration package.
Mr Lock was a salesman for British Gas who received basic pay
and variable commission payments. Mr Lock's commission was
calculated by reference to sales achieved. When Mr Lock was on
annual leave he only received basic pay he did not consider this
fair and he brought a claim in the employment tribunal for his
"lost" holiday pay.
This case was referred to the ECJ and its decision today was
that the commission received by Mr Lock was directly linked to his
work and consequently where a worker's pay consists of basic
salary and commission the worker should not be financially worse
off as a result of taking annual leave.
