23 February 2016 | Herpreet Kaur Grewal
Thousands of workers will now be able to claim holiday pay previously denied to them, thanks to a successful ruling this week on a case brought by a member of trade union Unison.
The decision means that from now on the amount that employees get paid for their holiday must be based on both their basic pay and any commission they earn.
Commenting on the case, Unison general secretary Dave Prentis said: “This is a victory both for employees and for those that believe in fair pay. From the very beginning, Unison has fought for workers to have their commission included in their holiday pay. This case will have implications for thousands of workers across Europe, who for years have been denied a fair deal.
“Until now, some employees who rely upon commission and overtime have lost a significant amount of money. It’s only fair that workers should receive their normal pay, including their regular commission, whenever they take their annual leave.”
This case, brought by Unison member Joe Lock, will have implications for workers who normally receive commission and potentially other similar payments and are paid less than their normal income during periods of annual leave.
Nick Soret, of business consultancy NatWest Mentor, said: “This case is the latest in a string of cases interpreting the EU Working Time Directive on paid holiday entitlement and in particular about how holiday pay should be calculated. The ruling seems to confirm previous cases, which said that holiday pay should include additional elements that are regularly received by workers and that UK law can be interpreted in this way. Employers who have not already taken advice on how they pay holiday pay should do so now”.