Calculating Holiday Pay

The European Court has ruled on an English case that a worker taking annual leave must be paid the commission he would have earned had he been at work.

Therefore, it would now seem that when a worker takes leave, he or she must be compensated not just for basic pay, but for lost commission during the leave. There is no guidance as yet as to how to calculate such missed commission. We recommend at this point that you use an average of the workers previous 12 weeks pay to calculate the holiday pay.

Failure to do so will produce an accumulating claim from each such worker which could mount up over a number of years in theory.

The case is British Gas v Lock and can be read at the following link.

http://www.bailii.org/eu/cases/EUECJ/2013/C53912_O.html

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Calculating Holiday Pay