The long awaited decision of the British Gas Holiday Pay case is shortly upon us.

The Employment Appeal Tribunal (EAT) is to hear the case of Lock v British Gas on 8 and 9 December. The case will be heard after British Gas appealed an employment tribunal (ET) ruling in March found that commission must be included when employers calculate holiday pay.

The Employment Tribunal (ET) ruled that the Working Time Regulations should be read to ensure commission is brought into the calculation for holiday pay in line with the Working Time Directive. British Gas appealed the decision on the basis that non-guaranteed overtime and commission are dealt with under separate provisions.

The decision will certainly bring employers closer to receiving some certainty over the position regarding commission and holiday pay, as well as result in some practical guidance regarding how to calculate holiday pay.

Jacqueline Webb, Employment Partner at Pictons, said “This decision should not only deliver more certainty for UK employers, but also provide practical guidance on matters such as appropriate reference periods or how to quantify a claim”.

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