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29 May 2015

Holiday pay: British Gas to appeal decision in Lock

In a recent article, we discussed the case of Lock v British Gas, in which an employment tribunal held that commission payments should be taken into account when calculating holiday pay.

British Gas has now lodged an appeal against the decision.  We understand that they are appealing on two grounds: first, that commission and non-guaranteed overtime are dealt with under different provisions, using different language and the tribunal had been wrong to conclude that Bear Scotland, a case about overtime, had any bearing on the outcome of Lock.  The second ground is that the Employment Appeal Tribunal (EAT) in the Bear Scotland case incorrectly concluded that domestic legislation could be interpreted to give effect to EU Law.  It is expected that the EAT will hear the appeal by the end of this year.

The appeal generates a further period of uncertainty and employers should seek advice before making changes to the way they calculate holiday pay.