June 25, 2014

Holiday pay should include commission

In this case, the Claimant was a sales agent whose commission normally made up around 60% of her pay, albeit that it fluctuated. If the Claimant took leave, the month following his return from leave was necessarily a lower monthly payment because of absence. In upholding the Advocate General’s Opinion, the ECJ has potentially created a difficult situation for a number of employers whose staff remuneration is comprised primarily of commission payments. This is an important point which must be taken into consideration when dealing with payment of holiday pay in all situations where the remuneration has, as an integral part of it, an element of commission.

This legal update is provided for general information purposes only and should not be applied to specific circumstances without prior consultation with us.

For further details on any of the issues covered in this update please contact Gemma Ospedale, Partner in Employment on 020 7583 2222.

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