APSCo responds to the Lock decision on holiday pay & commission
“The background to this case is that Mr Lock, a salesman for British Gas, received a basic salary with variable commission paid in arrears. His holiday pay was calculated on the basis of a week’s pay of his basic salary. Because he could not earn commission while on holiday, he brought a claim in the Leicester Employment Tribunal for unlawful deduction of wages in respect of his & lsquo;lost’ holiday pay – i.e. commission he would have made. The tribunal has held that the holiday pay should include an element for the commission he would have earned while on holiday.
“Obviously, APSCo is extremely concerned by this ruling and the potential repercussions for the recruitment sector, but we obviously want to read the whole judgement and the fine detail before advising our members. We feel there could well be an argument and previous case law to suggest that commission for certain types of sales roles would not be intrinsically to linked the work done, and therefore should not have to be taken into account. It’s also highly likely that the decision will go to appeal, which could potentially change the outcome.”