The European Court of Justice says: ‘holiday pay must include commission’

If your employees receive commission payments in addition to their normal basic pay this decision will affect you.

The ECJ has decided that the Working Time Directive (enacted as the Working Time Regulations 1998 in the UK: specifically Reg 16) requires member states to ensure that workers who take leave are paid by reference to not only normal pay but also commission payments.

In other words: normal pay needs to be augmented to reflect average commission earnings over the period of annual leave taken.

Whilst any amendment to the Working Time Regulations may be some way off: in the mean time the courts and tribunals will interpret existing provisions with this ruling in mind.

Bookmark the permalink.

Leave a Reply

Your email address will not be published. Required fields are marked *