Personnel Today
  • Home
    • All PT content
  • Email sign-up
  • Topics
    • HR Practice
    • Employee relations
    • Learning & training
    • Pay & benefits
    • Wellbeing
    • Recruitment & retention
    • HR strategy
    • HR Tech
    • The HR profession
    • Global
    • All HR topics
  • Legal
    • Case law
    • Commentary
    • Flexible working
    • Legal timetable
    • Maternity & paternity
    • Shared parental leave
    • Redundancy
    • TUPE
    • Disciplinary and grievances
    • Employer’s guides
  • AWARDS
    • Personnel Today Awards
    • The RAD Awards
  • Jobs
    • Find a job
    • Jobs by email
    • Careers advice
    • Post a job
  • Brightmine
    • Learn more
    • Products
    • Free trial
    • Request a quote
  • Webinars
  • Advertise
  • OHW+

Personnel Today

Register
Log in
Personnel Today
  • Home
    • All PT content
  • Email sign-up
  • Topics
    • HR Practice
    • Employee relations
    • Learning & training
    • Pay & benefits
    • Wellbeing
    • Recruitment & retention
    • HR strategy
    • HR Tech
    • The HR profession
    • Global
    • All HR topics
  • Legal
    • Case law
    • Commentary
    • Flexible working
    • Legal timetable
    • Maternity & paternity
    • Shared parental leave
    • Redundancy
    • TUPE
    • Disciplinary and grievances
    • Employer’s guides
  • AWARDS
    • Personnel Today Awards
    • The RAD Awards
  • Jobs
    • Find a job
    • Jobs by email
    • Careers advice
    • Post a job
  • Brightmine
    • Learn more
    • Products
    • Free trial
    • Request a quote
  • Webinars
  • Advertise
  • OHW+

Case lawCommissionHolidays and holiday payWorking Time Regulations

Lock holiday pay case heard at Court of Appeal

by Qian Mou 13 Jul 2016
by Qian Mou 13 Jul 2016 David Bagnall/REX/Shutterstock.
David Bagnall/REX/Shutterstock.

Lock and another v British Gas Trading Ltd, the highly anticipated case on including commission payments in holiday pay calculations, was heard at the Court of Appeal on Monday 11 July 2016.

Additional resources on holiday pay

Holiday and holiday pay guidance

Annual leave line manager briefing

Contract clause on holiday pay for employees

Mr Lock, a sales consultant with British Gas, claimed in an employment tribunal that he was owed money on the basis that his holiday pay did not reflect what he would have earned from commission.

On top of his basic pay, he is paid monthly commission, which fluctuates based on his sales.

The case has been heard by the European Court of Justice (ECJ), the employment tribunal, the Employment Appeal Tribunal (EAT), and now the Court of Appeal.

The ECJ ruled that Mr Lock’s commission is directly linked to the work he carries out, and so should be taken into account when calculating holiday pay. The case then returned to the employment tribunal to have the ECJ’s ruling applied to UK law.

The employment tribunal read an extra subsection into the Working Time Regulations 1998 to make them comply with the ECJ’s ruling.

The EAT upheld the employment tribunal decision and followed its own earlier decision in Bear Scotland Ltd and others v Fulton and others (on including overtime payments in holiday pay).

Employment law cases on appeal

Keep track of key employment law cases on appeal

Arguments at the Court of Appeal primarily involved the question of whether or not the Working Time Regulations 1998 could be interpreted to include commission in Mr Lock’s holiday pay.

The Court of Appeal also heard arguments about whether or not a decision to include commission in holiday pay for workers such as Mr Lock might be too broad and have unintended consequences.

For example, a decision to include commission in holiday pay is not intended to apply to city workers who receive an annual discretionary bonus based on team or organisational performance.

The parties agreed that the outcome of the Court of Appeal decision should apply only to workers who have normal working hours, whose pay does not vary according to the amount of work done, but who receive individual results-based commission as a part of their normal remuneration.

British Gas’s representatives have previously stated that it has around 1,000 potential claims from its workers waiting in the wings, pending the outcome of this case.

Sign up to our weekly round-up of HR news and guidance

Receive the Personnel Today Direct e-newsletter every Wednesday

OptOut
This field is for validation purposes and should be left unchanged.

The Court of Appeal said it would deliver a decision as soon as reasonably possible; similar judgments on issues of this complexity normally take two to three months.

More details of the arguments before the Court of Appeal and a podcast discussing holiday pay case law are available on XpertHR.

Qian Mou

Qian Mou is an employment law editor at XpertHR. She is qualified as a lawyer in England and Wales, and Ontario, Canada. Prior to joining XpertHR, Qian worked as a private practice lawyer specialising in employment law and as an HR consultant at a national bank in Toronto.

previous post
How worker representatives on boards might affect employers
next post
Leadsom and “CV-gate”: how can HR always be sure of accuracy?

You may also like

Restaurant tips should be included in holiday pay

21 May 2025

Consultation launched after Supreme Court ‘sex’ ruling

20 May 2025

EHRC bows to pressure and extends gender consultation

15 May 2025

Bank holidays: six things employers need to know

2 May 2025

‘Unacceptable to question integrity’ of Supreme Court judgment

2 May 2025

Trans ex-judge to appeal Supreme Court biological sex...

29 Apr 2025

EHRC: Interim update on single-sex spaces draws criticism

28 Apr 2025

Opposition to Supreme Court sex ruling is ‘wishful...

22 Apr 2025

Supreme Court transgender ruling: ‘common sense’ or ‘incredibly...

17 Apr 2025

Supreme Court: legal definition of woman based on...

16 Apr 2025

  • 2025 Employee Communications Report PROMOTED | HR and leadership...Read more
  • The Majority of Employees Have Their Eyes on Their Next Move PROMOTED | A staggering 65%...Read more
  • Prioritising performance management: Strategies for success (webinar) WEBINAR | In today’s fast-paced...Read more
  • Self-Leadership: The Key to Successful Organisations PROMOTED | Eletive is helping businesses...Read more
  • Retaining Female Talent: Four Ways to Reduce Workplace Drop Out PROMOTED | International Women’s Day...Read more

Personnel Today Jobs
 

Search Jobs

PERSONNEL TODAY

About us
Contact us
Browse all HR topics
Email newsletters
Content feeds
Cookies policy
Privacy policy
Terms and conditions

JOBS

Personnel Today Jobs
Post a job
Why advertise with us?

EVENTS & PRODUCTS

The Personnel Today Awards
The RAD Awards
Employee Benefits
Forum for Expatriate Management
OHW+
Whatmedia

ADVERTISING & PR

Advertising opportunities
Features list 2025

  • Facebook
  • Twitter
  • Instagram
  • Linkedin


© 2011 - 2025 DVV Media International Ltd

Personnel Today
  • Home
    • All PT content
  • Email sign-up
  • Topics
    • HR Practice
    • Employee relations
    • Learning & training
    • Pay & benefits
    • Wellbeing
    • Recruitment & retention
    • HR strategy
    • HR Tech
    • The HR profession
    • Global
    • All HR topics
  • Legal
    • Case law
    • Commentary
    • Flexible working
    • Legal timetable
    • Maternity & paternity
    • Shared parental leave
    • Redundancy
    • TUPE
    • Disciplinary and grievances
    • Employer’s guides
  • AWARDS
    • Personnel Today Awards
    • The RAD Awards
  • Jobs
    • Find a job
    • Jobs by email
    • Careers advice
    • Post a job
  • Brightmine
    • Learn more
    • Products
    • Free trial
    • Request a quote
  • Webinars
  • Advertise
  • OHW+