Holiday Season for the Employment Appeal Tribunal
On Wednesday and Thursday this week, the Employment Appeals Tribunal (EAT) heard the case of British Gas v Lock as it grapples once again with the thorny issue of holiday pay.
Mr Lock is a sales consultant for British Gas who has brought a claim against his employer for outstanding holiday pay on the basis that it didn’t account for the commission that he would have earned had he been working. At first instance, the Tribunal sought guidance from the European Court of Justice which concluded that commission was directly linked to the work carried out and therefore should be taken into account for calculating holiday pay. The Employment Tribunal judge then read wording into the UK Working Time Regulations 1998 to make sure it was consistent with the European Working Time Directive.
British Gas is appealing on the following grounds:
- The Tribunal was wrong to decide that the case of Bear Scotland v Fulton was relevant when considering whether holiday pay should take account of commission. Bear Scotland was a case about holiday pay and overtime.
- The EAT in Bear Scotland was wrong to interpret the Working Time Regulations so as to give effect to the EU’s Working Time Directive
The EAT’s decision is not expected until well into the new year.