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Holiday Pay

The Employment Appeals Tribunal (EAT) has confirmed that, when calculating holiday pay, employers must take into account any “commission or similar payment” an employee would “normally” receive when working. Paying basic pay alone is unlawful.

The judgment in British Gas v Lock, which left open what is meant by “commission or similar payment” is now to be appealed by British Gas to the Court of Appeal, but meantime Employment Tribunals are required to follow the EAT judgment.  Employers who pay bonuses, accommodation or attendance allowances may all be required to pay backdated holiday pay.  

 

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