Ruled: employers should include commissions in their calculation of holiday pay
Last November, the European Court of Justice had already ruled that overtime should be included in an employee’s holiday pay and this has now been extended to commissions if these are part of a normal week’s pay. This means that employees have now the right to have both non-contractual overtime and commissions included in their holiday allowance and can also file backdated claims going back for up to 2 years pay.
Whilst this is good news for employees, it is a double whammy and another potential headache for employers who will have to work out exactly what the implications are for their business and then implement the new regime going forward.
Emma Hamnett, partner and employment law specialist at national law firm Clarke Willmott LLP has been an expert media commentator on this issue and can discuss what the implications of this new development are for businesses and employers.