Given the high numbers of potential holiday pay claims that British Gas has waiting in the wings it is unsurprising that following its loss at the Court of Appeal British Gas tried to appeal the decision to the Supreme Court. By way of brief reminder, the Court of Appeal found in Mr Lock's favour and ruled that his holiday pay should include commission.
However the Supreme Court has refused to grant British Gas leave to appeal and has remitted the case back to the employment tribunal to determine the amount that should be paid to Mr Lock. It is hoped that the employment tribunal will make it clear how exactly the commission element of holiday pay should be calculated, as currently there is no clear guidance as to what the correct reference period should be.
There is speculation as to whether, following Brexit, this EU-derived right will continue. However at this stage this is a moot point as until the UK leaves the UK (which is likely to be at least two years away) companies and courts will have to uphold this right. So for the foreseeable future companies need to make sure that holiday pay includes commission.
(To see our previous blog post about the Court of Appeal hearing please click here)
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