Commission and holiday pay

  • By The Alchemist About Town
  • 23 May, 2016

People stuff

Pic from rebeccaamurthagh.com
If your reward strategy includes commission and makes use of overtime payments than it is time that you review your policies and contracts of employment in line with recent courts decisions.

In the long saga of Lock v British Gas Ltd.   the Employment Appeal Tribunal (EAT) has upheld the employment tribunal’s decision in the case of Lock v British Gas.

This is the well publicised case regarding holiday pay and commission, in which the employment tribunal ruled after the case had been referred back to it from the European Court of Justice .


The case involves Mr Lock (salesperson at British Gas) whose remuneration package included a basic salary plus commission, based on the number and type of contracts to which customers agreed. When he took annual leave, he would only receive basic pay, which was considerably less than his usual salary. Lock lodged a claim with an employment tribunal, which referred the case to the European Court of Justice (ECJ) to clarify the relationship between holiday pay and commission for workers where commission was a regular part of their pay. 
In a similar case, Bear Scotland v Fulton , the EAT ruled that UK law must be interpreted in a conforming way to EU law by requiring employers to take into account non-guaranteed overtime payments when calculating holiday pay and this approach should also apply to commission.

The decision means that employees with regular working hours whose remuneration includes commission or similar payments will fall to have a week's pay, for annual leave purposes, calculated at the average rate over the previous 12 weeks, and this will include commission, not only basic salary.This decision applies only to the four-week European Directive related annual leave and not the full 5.6 weeks granted by the Working Time Regulations (WTR).

If you regularly pay commission or bonuses intrinsically linked to job related functions and who don’t factor that in to certain holiday pay calculations need to be conscious that continuing such a practice is against the decisions being made by the tribunal and EAT in this area. However, it is a complicated area and if there is a further appeal, the legal position may be regarded as still uncertain, so please do seek advice she reviewing your policies or drafting contracts of employment/terms and conditions.

The People Alchemist Blog

By The Alchemist About Town 22 Sep, 2017
I am so utterly delighted that my book is now out, available to order both on paperback and on Kindle edition just in time for Business Women's Day - YES!!!!!! :-) 

STOP IT! It's all in your head   is my labour of love and my way to encourage, inspire and empower women to achieve what they want professionally and not be confined by societal, religious, family paradigms of what " women should do/are like" and, most importantly, the restrictions in their head.
If that is being CEO of a Global Company or a stay-at-mum or Director of Paperclip ( whatever grabs your fancy) so be it.

Writing this book was also a personal challenge ( the 30 days thingy) which confirmed to me once and for all that you can really do whatever you set your mind to, if you really want to that is.

Couple of tips for writing a book from me:
  • write about what you are passionate about, you know more than you think.
  • free-write about the parts/chapters in the book you like the most and you are most interested in first - that will give you a great boost at the beginning - you can edit and add the boring bits later - by then most of the book will be almost there
  • keep your own voice - write as you speak so to speak ( people do need to understand you though..)
  • keep an open mind, ideas will flow into you mid-way through the project
  • a deadline and going public is good to beat procrastination ( but if that stresses you out too much don't do it) - the deadline certainly helped me.
You can do it too!!!

If anyone would like to be part of the book launch, the event is live on Eventbrite and you can buy an Early Bird ticket now:
SMASH YOUR CEILING - #STOPITBookLaunch 
Thursday 12 October at 18.30
Business Design Centre
Islington
London

To pre- e-meet other super fab women in business attending the event, please use the following hashtags:
#SMASHYOURCEILING
#STOPITBookLaunch
#BDCWorks

I'm so excited about this book and I genuinely hope you will like it- I hope to meet you soon, in person or through the pages of my book.

Laura x


#Hustle #GirlBoss #SmashThatCeiling
  #SmashYourCeiling
STOP IT! It's all in your head 
#dreambig #believe #youcan



By The Alchemist About Town 19 Sep, 2017
The time is getting closer and closer to the release of   STOP IT, It's all in your head   my new book ( 22 September for Business Women's Day - US) .

I have now  received the proof copy of the paperback which looks absolutely fabulous: a couple of things to correct but overall I am super happy with the result.
A lot of marketing to do now between Facebook, Twitter, Instagram and Google+ ( which is PS: looking like more work than the actual writing of the book).

The book event/launch/talk is live on Eventbrite and you can buy an Early Bird ticket now:
SMASH YOUR CEILING - #STOPITBookLaunch 
Thursday 12 October at 18.30
Business Design Centre
Islington
London

To pre- e-meet other super fab women in business attending the event, please use the following hashtags:
#SMASHYOURCEILING
#STOPITBookLaunch
#BDCWorks

I'm so excited about this book and I genuinely hope you will like it.

Laura x


#Hustle #GirlBoss #SmashThatCeiling
  #SmashYourCeiling
STOP IT! It's all in your head 
#dreambig #believe #youcan



More Posts
Share by: