British Gas Trading Limited v Mr Z J Lock & Secretary of State for Business

There has been a decision released today by the Employment Tribunal in the case of British Gas Trading Limited v Mr Z J Lock & Secretary of State for Business, Innovation and Skills which has major implications for businesses and employees alike in industries where commission is a part of the remuneration package.

The EAT have confirmed an earlier decision of the employment tribunal to the effect that where pay normally includes an element of commission, then that amount must be taken into consideration when calculating holiday pay.

If employers fail to do so they may well face expensive tribunal proceedings, and they should immediately take steps to remedy the position or risk allowing these claims to be backdated.

For employees please note that a claim for wrongful deduction from earnings will require to be made within three months of the last period when the incorrect amount was paid.

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